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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.

Should heavy-duty pickup trucks have window stickers with fuel mileage estimates?

If you were to stroll into your nearest Chevrolet, Ford, GMC, Nissan, or Ram dealership, you'd find a bunch of pickup trucks. Most of those would have proper window stickers labeled with things like base prices, options prices, location of manufacture, and, crucially, fuel economy estimates. But you'd also run across a number of heavy-duty trucks with no such fuel mileage data from the Environmental Protection Agency. The EPA doesn't require automakers to publish the valuable miles-per-gallon measurement for vehicles with gross weight ratings that exceed 8,500 pounds. That makes it difficult for consumers to compare behemoths powered by turbocharged diesel engines – between one another, and between smaller, gasoline-fueled trucks. Consumer Reports doesn't think it should be this way, and it's spearheading an effort (PDF link) to get the government to require manufacturers to publish fuel economy estimates. In its own testing, CR found that heavy-duty pickups powered by Ford's Power Stroke, GM's Duramax, and FCA's Cummins diesel engines (which doesn't include the Ram's EcoDiesel) get worse fuel mileage than their lighter-duty gas-powered siblings. We're not so sure HD-truck buyers are unaware of this fact – big diesels don't really come into their own until big loads are placed in their beds or attached to their trailer hitches. Under heavy workloads, the diesel trucks will almost certainly return greater efficiency than a similar gas-powered truck. What's more, HD trucks with lumbering diesels in general make the driver feel more confident while towing due to greater torque at low engine RPM than gas trucks. They also offer greater max-weight limits. Still, we agree EPA fuel mileage estimates should be offered for heavy-duty pickups. And we think the comparisons provided by Consumer Reports might be interesting to potential buyers. Click here to see the results of CR's tests, and let us know what you think using the poll below. Related Video: Featured Gallery 2017 Ford F-Series Super Duty: First Drive View 22 Photos News Source: Consumer Reports Government/Legal Green Read This Chevrolet Ford GMC Nissan RAM Fuel Efficiency Truck Commercial Vehicles Diesel Vehicles poll gmc sierra hd chevy silverado hd

Recharge Wrap-up: Ford HQ gets giant solar array, Chevy City Express gets 24 MPG city

Ford will be building Michigan's largest solar array at its Dearborn headquarters. With funding from DTE Energy, the solar carport will provide covered parking, as well 30 charging stations for electric vehicles. The array is expected to generate 1.13 million kWh per year for Ford's operations, and offset 794 metric tons of carbon emissions. Read more in the press release below. Chevrolet announced the fuel economy for the 2015 City Express, at 25 mpg combined. The cargo van is rated at 24 mpg in the city, and 26 mpg on the highway. Chevy credits the van's inline four-cylinder engine and continuously variable transmission for its impressive city mileage. For its customers - which are mainly businesses - "The fuel economy of the City Express will help stretch their dollar at the pump and give them the flexibility to invest the savings back into their business," says Chevrolet's Ed Peper. The City Express starts at $22,950. Read more in the press release below. Engineers at the University of Wisconsin have developed an efficient engine that runs on a diesel-gas blend. The engine, which uses a computer to control the blend proportions, is about 15 percent more efficient than the any diesel engine according to mechanical engineering professor Rolf Reitz. The team has put the experimental reactivity controlled compression ignition (RCCI) engine in a demonstration car - a 2009 Saturn. "This vehicle can do 50 miles per gallon," says Reitz, who believes the system could be improved further. Read more at Wisconsin Public Radio. The Southeast Alternative Fuel Conference and Expo will take place in October in Raleigh, North Carolina. Held at the NC Clean Energy Technology Center from October 22-24, the event will feature a variety of exhibitors, speakers and, most importantly, alternatively powered vehicles. "The three day conference will be a one-stop shop for fleet and transportation related decision makers to learn about return on investment, efficiency and alternative transportation fuels such as biodiesel, electricity, ethanol, propane and natural gas," says Anne Tazewell of the NC Clean Energy Technology Center. If you can't make it to Raleigh for the Expo, you can still enter to win a free two-year lease of a Nissan Leaf at the Center's website. Learn more about the event in the press release, below.