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GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

Best midsize trucks for 2024

Pickup trucks are hugely popular in the United States, but most of them carry huge dimensions and huge price tags to match. That's where the rapidly expanding midsize truck market comes into play. With options from nearly every major manufacturer in America, there are plenty of midsize trucks to consider, but the best midsize pickup trucks are more comfortable, more capable off-road or more luxurious than the rest of the crowd. Put simply, there's an excellent midsize truck for every buyer, whether they want to save money with a low starting price and strong efficiency, tackle technical trails, surround themselves with leather and wood or even hit the road with the wind in their hair on their way to the beach. We've tested all of the midsize trucks in America available for 2024 and picked out the best choices for any type of buyer. Read on to find out which option is the best midsize truck for you for 2024 or 2025 (expect more versions of the Toyota Tacoma and Jeep Gladiator in 2025, too). If you're needs don't require a midsize truck, you may want to consider a compact. There are only two for sale in 2024, and we break down our rankings here.   Best midsize trucks for 2024 2024 Chevrolet Colorado  Why it stands out: Good ride, handling; powerful engines; strong towing; refined interior; Google infotainment Could be better: Only one cab/bed combination (four door, short bed) Starting Price: $31,095 Read our most recent Chevrolet Colorado review Suffice it to say, we're big fans of the latest Chevy Colorado. In fact, we think the Colorado is the best midsize pickup truck in America overall. Thanks to the base WT offering, the starting price is reasonable, but the Colorado is really at its best in one of its more specialized forms. The Trail Boss expands its off-road capabilities with a suspension lift and chunky tires, the ZR2 adds an even larger suspension lift and a gaggle of off-road special bits and the ZR2 Bison tops the range with sensational Multimatic DSSV spool-valve dampers, special bumpers and underbody cladding for rock-crawling prowess. In between those specialist packages lie the LT and Z71 trims, which is what will make up the majority of sales. A low-power turbocharged 2.7-liter four-cylinder making 237 horsepower and 259 pound-feet of torque is standard, while the more common engine is a more powerful version with 310 HP and 390 lb-ft. A High-Output engine option keeps the same 310 HP but boosts torque to 430 lb-ft.

UAW rejects GM contract proposal but makes a counter offer

The United Auto Workers union said a new comprehensive offer made by General Motors Co late Monday to end a two-week-old strike was not acceptable and said it had made a new counterproposal. UAW vice president Terry Dittes said in a letter to members "there are many important issues that remain unresolved." The union is awaiting GM's next proposal. He said GM's offer came up short on many issues.  Dittes said GM made a "comprehensive proposal" at 9:40 p.m. Monday. "This proposal that the company provided to us on day 15 of the strike did not satisfy your contract demands or needs. There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few." Dittes is the union's vice president for GM relations and the UAW's lead negotiator in these contract talks. "We have responded today with a counterproposal and are awaiting GM's next proposal to the union," he wrote. "Regardless of what is publicized in print or social media, etc., there are still many important issues that remain unresolved." The strike, in its third week, has cost GM more than $1 billion, according to J.P. Morgan analyst Ryan Brickman. He said the cost per day in potential profit is $82 million. However, another analysis, by East Lansing-based consultant Anderson Economic Group, put the losses at $25 million a day. And the effects of the strike are expanding. GM said Tuesday the strike has created a parts shortage that forced the automaker to halt production at its pickup and transmission plants in Silao, Mexico, temporarily laying off 6,000 workers. Silao is where GM builds its highly profitable four-door crew cab Chevy Silverado and GMC Sierra pickups. The strike has also forced GM to idle some Canadian workers, and many suppliers have been forced to halt operations. About 48,000 UAW members went on strike on Sept. 16 seeking higher pay, greater job security, a bigger share of the leading U.S. automaker’s profit and protection of their healthcare.