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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.

Chevrolet only automaker to win EPA's 2015 Climate Leadership Awards

Chevrolet was the only automaker to be on the list of entities for the US Environmental Protection Agency (EPA) Climate Leadership Awards. Of course, the accolades had nothing to do with any vehicle's tailpipe emissions, General Motors can still be proud. The automaker is engaging in what it calls the Chevrolet Clean Energy Campus Campaign. Chevy is working with the US Green Building Council, among other groups, to find ways for buildings in primary and secondary schools as well as college campuses to reduce their collective carbon footprint via better design. The EPA pointed out the "carbon performance methodologies" used by Chevrolet to run the program and spur lower emissions from its campus partners. The effort is part of Chevrolet's broader goal to reduce greenhouse-gas emissions by as many as 8 million metric tons of CO2. And it's going to take more than bunch of plug-in Volt and Spark EVs to do that. Other entities feted by the EPA include UPS, Bank of America, the cities of San Francisco and Oakland, Clorox and Tiffany & Co. Yes, Tiffany. Take a look at the EPA's press release below, and find out more information on Chevy's program here. UPS, Bank of America, SC Johnson Among 16 Organizations across the U.S. Recognized for Climate Action / EPA also recognizes Chevrolet Clean Energy Campus Campaign, San Diego Regional Climate Collaborative in new Innovative Partnerships Category WASHINGTON – From an innovative partnership enabling colleges to sell carbon credits to fund clean energy projects on campuses to some of the country's leading corporations setting and exceeding aggressive emission reduction goals, the U.S. Environmental Protection Agency's Climate Leadership Award winners announced today are demonstrating that innovative actions to combat climate change are smart business decisions. Sixteen organizations and one individual representing a wide array of industries from finance and manufacturing to retail and technology show exemplary corporate, organizational, and individual leadership in response to climate change. "I am proud to recognize our Climate Leadership Award winners for their actions to reduce the harmful carbon pollution that's fueling climate change," said EPA Administrator Gina McCarthy. "Our winners are demonstrating that a healthy environment and a strong economy go hand in hand.

Chevy might've pulled out of NASCAR if it weren't for new Gen 6 car

We've been on the fence with NASCAR for some time now. On one hand, it's some of the closest racing anywhere in motorsports, with actual passing and door-handle-to-door-handle action as a matter of course. But on the other, it's become template racing - a personality-driven sport more about the drivers than any sort of loyalty to a particular automaker. The Car Of Tomorrow format really rammed that message home, with a racecar's identity coming down to little more than headlamp stickers slapped on the nose. That's not necessarily a bad thing in and of itself, but we've wondered for some time what's in it for the automakers, who pay big money to stay in a series that has had little increasingly little do with street car sales, let alone innovation.
Apparently General Motors was beginning to wonder the same thing. In a new ESPN report, Rick Hendrick, team owner of Hendrick Motorsports, suggests that GM would have seriously considered leaving NASCAR if it wasn't for the move away from the COT to the new Gen 6 racer. According to Hendrick, GM North America boss Mark Reuss spearheaded the charge away from the 2007 COT and toward a racecar with clearer automaker ties - cars like the new Chevrolet SS racer shown above. Learn more about the fight for a closer-to-production look in the ESPN story at the link.
Now, if we could just get more rear-wheel drive V8 coupes into showrooms....