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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.

Ford, Toyota clean up in Best Car For The Money Awards

The U.S. News Best Cars for the Money Awards picks winners by looking at the average transaction price, five-year total cost of ownership, the regard a car has from the automotive press, reliability figures from J.D. Power and Associates and safety data from the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety. The result, according to the magazine, is "the best combination of critical acclaim and long-term value."
Ford nabbed six of the 21 categories that received awards this year, the Focus, Fusion, Fusion Hybrid, Taurus, Escape and Edge getting trophies. Toyota and its Lexus and Scion sub-brands took another five, the Tacoma and Tundra owning the two categories given to pickup trucks. The other ten awards were split between Honda with three, Buick with two, and one each for Subaru, BMW, Hyundai, Chevrolet and Mazda.
Follow the link to see all the winners and read about why they were chosen.

2015 Chevrolet SS Review [w/video]

The Chevrolet SS is one of the best cars no one's buying. It's a Bowtie-badged version of the Australian Holden Commodore with a 6.2-liter LS3 V8 under the hood. It's got a six-speed manual transmission, General Motors' sophisticated Magnetic Ride Control suspension, and rear-wheel drive. It's a fullsize sedan that comes with every possible amenity you could want. And it's less than $50,000. Chevrolet sold 2,479 SS sedans in 2014. That means it was outsold by every other vehicle the automaker offers, even the police fleet-only Caprice. (I'm only talking about cars that were on sale for the full 2014 calendar year, of course.) The aforementioned manual transmission and MRC suspension were added for 2015, but it's not clear if that's helping. The SS is down 7.7 percent through June of this year, compared to 2014's numbers. But hey, at least it's finally outselling the Caprice. What a damn shame. Granted, GM only planned to sell a few thousand of these each year, but as enthusiasts, this a car we should be gobbling up. It's the closest we'll get to a four-door Corvette, and with the 2015 model year updates, that statement is more true than ever. People often mistook the SS for a Malibu. "Is that a rental car?" Yikes. Aside from the manual gearbox and magnetorheological suspension, the SS is largely unchanged through its year and a half of sales. But that's no bad thing – we were thoroughly impressed with the SS when we first tested it at the end of 2013. Outside, the SS looks the same, which is a bummer. It is not an attractive car, and the chrome brightwork on the side vents and wheels doesn't help. That said, the sedate styling puts it under the radar – more so than competitors like a Dodge Charger 392, anyway. But maybe it's too under the radar. Even in the new, "Some Like It Hot Red" color (yes, really), photographer Drew Phillips reports that people often mistook the SS for a Malibu. "Is that a rental car?" Yikes. Exterior styling is our only gripe with the SS. Moving inside, there's a lot to like. This is easily one of Chevy's nicest, well thought-out interiors (thanks, Holden), with premium materials and tons of equipment. The Chevy MyLink infotainment system carries over, and now features 4G LTE and wifi connectivity. The touchscreen is a bit slow to respond, but otherwise, it's bright, well organized, and packed with functionality. This is easily one of Chevy's nicest, well thought-out interiors.