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GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

2016 Chevy Cruze is lighter, loaded [UPDATE]

UPDATE: Live photos and video of the reveal have been added at the end of the story. Chevrolet revealed the second-generation Cruze Wednesday, promising a larger, more efficient car that drives better than the sedan it replaces. We're particularly excited about the new turbocharged, 1.4-liter four-cylinder engine, which makes 153 horsepower, an upgrade from the outgoing 1.8-liter naturally aspirated engine's 138 hp. Torque climbs even more significantly, from 148 pound-feet to 177 in the new mill. Peak twist can be called up between 2,000 and 4,000 rpm, which should make performance easy to access. Combined with a lighter architecture that slashes the Cruze's curb weight by 250 pounds (although the actual curb weight hasn't been released), the new four-door can hit 60 miles per hour in a respectable eight seconds. That's not hot hatchback territory, but it should be more than suitable for the average consumer. That same consumer should also appreciate the new engine's economy. The Cruze now returns an even 40 miles per gallon on the highway and will cover 530 miles on a single tank, all the while running on plain old 87-octane fuel. There's also a diesel-powered Cruze model, although Chevy didn't release specific details, aside from saying that it will arrive in dealers in 2017, over a year after the gas-powered model's early 2016 on-sale date. Despite the 250-pound drop in weight, the new Cruze has grown significantly. Its wheelbase is now the longest in the segment, with 106.3 inches of sheetmetal between the front and rear axles compared to 105.7 in last year's model, while the sleek new body cuts the coefficient of drag to just 0.29. The overall length increases from 181 inches to 183.7, though the new model is nearly an inch lower overall. That's both good news and bad news for interior space. Rear legroom is up from 35.4 to 36.1, but headroom is down in both the front and backseats by over half an inch. Tech fans, meanwhile, will appreciate the new standard MyLink display. The seven-inch touchscreen is compatible with both Android Auto and Apple CarPlay, while an optional eight-inch display will be offered, as well. 4G LTE wi-fi, heated rear seats, a heated steering wheel, and wireless phone charging will also be offered as an optional extras. New safety features include blind-spot monitoring with cross-traffic alert, lane keeping assist, and forward collision warning.

GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.