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GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.

Watch how Corvette Racing's new collision-avoidance radar system works

When it comes to technology used in racecars, we generally expect it to trickle down to production cars, not the other way around. Well, Pratt & Miller has developed a new rear-facing radar that operates in a similar fashion to what we're used to in modern blind spot detection systems, only it is also capable of tracking cars as they approach and relaying vital information to the driver via a large display screen.
The innovative radar system debuted at last weekend's 12 Hours of Sebring for Corvette Racing, and this system makes perfect sense for endurance races like this since the cars sometimes have to drive through the night and in poor weather conditions.
The radar can detect cars even with poor visibility, and uses easy-to-distinguish symbols for the driver to identify.

How GM engineers are using diaper 'snow' to keep you warm

Testing how snow affects General Motors' vehicles isn't really a problem right now for the company's engineers, but in the dog days of summer the process isn't exactly easy. The only real option is for them to book time at the automaker's climatic wind tunnel. However, a flash of brilliance from an engineer allows snow to be simulated regardless of the temperature outside, and the discovery is all because of his daughter's wet diaper. The realization came to GM Thermal Systems engineer Nicholas Jahn while he was swimming with his daughter and noticed how her diaper ballooned in size in the water. He found out the substance that makes this possible is called sodium polyacrylate. When the material gets wet it grows and forms fluffy flakes that are a close imitation of snow. Best of all, the stuff can be prepared easily any time of the year, and it's reusable. The engineering team uses the material to test the effectiveness of the heating systems of GM's vehicles. They spread the sodium polyacrylate over the inlets at the base of the windshield to obstruct the airflow and then crank the heater. After some time, they can see how much is being sucked into the system and design more efficient systems in the future. See how the process works in the video above and read about the diaper discovery in GM's press release below. Diapers Change Chevy Cruze Winter Warm-up Time GM validation engineer uses diaper material "snow" to reduce frigid drives 2015-01-06 DETROIT – An item commonly found on an infant's changing table is helping General Motors' engineers simulate snow year round, ensuring heating systems in cars like the 2015 Chevrolet Cruze can quickly and efficiently warm its interior. Packed snow can prevent air from entering the inlet panel at the bottom of the windshield, obstructing the flow of air into the heating system and reducing the amount of air it can push out. This can lead to less efficient warming of the car's interior and windshield defrosting. "The last thing anyone wants to do when it's freezing cold out is scrape their windshield," said Nicholas Jahn, GM Vehicle Thermal Systems engineer. "The testing we perform on the Chevrolet Cruze with the diaper material allows us to maximize the car's heating capabilities." Ironically, Jahn stumbled upon his diaper-based testing method in the middle of summer. During a swim with his daughter, he noticed her diaper multiplied in size when it came into contact with water.