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GM posts $4 billion third-quarter profit thanks to trucks and SUVs

DETROIT — General Motors is posting huge third quarter numbers, pulling in $4 billion in profit over three months after losing money due to the virus outbreak. GM's adjusted earnings were $2.83 per share, easily outpacing Wall Street's per-share projections of $1.43, according to a survey by FactSet. Revenue of $35.5 billion also edged out most expectations. Shares jumped almost 6% before the opening bell Thursday. The company swung back from a $806 million loss in the second quarter, when it was restarting factories shuttered for safety during the early stages of the pandemic. The Detroit automaker joined most global automakers in reporting better-than-expected earnings from July through September as sales across the globe started to rebound from coronavirus lockdowns, especially in China. GM sales in China jumped 12% in the third quarter, with sales of its Buick and Cadillac brands both rising more than 25%. In the U.S., GMÂ’s most profitable market, sales fell 9.9% in the third quarter compared with a year ago, but were a dramatic improvement over the 34% drop in the second quarter. Sales improved sequentially each month, the automaker said, an encouraging trend. GMÂ’s profit was boosted by higher-priced pickup trucks and large SUVs, which have seen strong sales in the U.S. through the pandemic. It was the best quarter on record for GM's Chevrolet Blazer. Sales of the Cadillac XT6 spiked 45% in the U.S. over last year. Large pickups also sold well. GM also said it was pumping $2 billion into its Spring Hill, Tennessee manufacturing plant to push its transition to produce electric vehicles. Last week, crosstown rivals Fiat Chrysler and Ford reported strong third-quarter net income. FCA said it made $1.4 billion for the period, while Ford earned $2.39 billion. Related Video: Earnings/Financials Buick Cadillac Chevrolet GM GMC

Meet Alex Archer, the engineer behind GM's power-sliding center console

In 2009, a GM manager complained to a 59-year-old GM technician about the hassle of retrieving items from a pickup truck bed after driving shifted the cargo. In two days, the tech had come up with the ideas that, ten years later, would debut as the MultiPro tailgate. The engineering teams kept the tailgate secret in part by hiding mock-ups in a locked storage closet in GM's Vehicle Engineering Center in Warren Michigan for two years. A piece in the Detroit Free Press reveals that another storage closet in Warren would play the same role in a different cloak-and-dagger operation, this time for the power-sliding center console in GM's new full-sized SUVs. During a meeting in early 2017, bosses gave the job of the console's creation to 24-year-old design release engineer Alex Archer, just two years out of Stanford University with a degree in engineering and product design.  This time, the catalyst for the feature was an internal GM think tank called co:lab, where employees suggest ideas. Execs gave Archer the task because "They needed someone willing to ask a lot of questions," her 36-month mandate to produce a six-way console that could be a standard cubby or a gaping maw able to swallow four gallon jugs or hide a secret compartment. Clearly, she succeeded. It took Archer and the team nine months to devise a prototype, another six months to get the green light for production. As with the tailgate, the team working on the console grew to include designers, production engineers, and suppliers. Archer, now 26, shepherded the process, and her name is on the patent. "It took a ton of people, I'm just somebody who stuck with it the whole time," she said. GM like her work well enough to produce the "Day in the Life" segment above, five months before the world would hear about the console. Archer's path to engineering was as unlikely as getting the job for the console. She had entered Stanford with plans to be a doctor. But an innovation class during her freshman year, and a sophomore summer spent helping her grandfather rebuild a 1937 MG engine recharted her course. Her grandfather told her, "You know, you could be an engineer for a car company." Consumer reaction to Archer's work won't be far off, the SUVs slated to hit dealerships soon. Meanwhile, she's busy on something that could be just as intense as the console: Restoring a 1955 Packard Clipper in her garage. Head to Freep to check out the story of Archer and the console. Related Video:

GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax