1999 Chevy 2500 4x4 Crew Cab on 2040-cars

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Cruze Diesel Road Trip reveals the good and bad, but no ugly

Most of us have strong opinions on diesel-powered cars based on our perceptions of and experience with them. I used to thoroughly dislike oil burners for their noise, smoke and lackluster performance, and the fact that they ran on greasy, smelly stuff that was more expensive than gasoline, could be hard to find and was nasty to get on your hands when refueling. Those negatives, for me, trumped diesel's major positives of big torque for strong acceleration and better fuel economy. Are any of those knocks on diesel still valid today? I'm not talking semis, which continue to annoy me when their operators for some reason almost never shut them down. At any busy truck stop, the air seems always filled with the sound – and sometimes smell – of dozens of big-rig diesels idling endlessly and mindlessly. Or diesel heavy-duty pickups. Those muscular workhorses are far more refined than they once were and burn much less fuel than their gasoline counterparts. But good luck arriving home late at night, or departing early morning, without waking your housemates and neighbors with their clattery racket. No, I'm talking diesel-powered passenger cars, which account for more than half the market in Europe (diesel fuel is cheaper there) yet still barely bump the sales charts in North America. Diesel fuel remains more expensive here, too few stations carry it, and too many Americans remember when diesel cars were noisy, smelly slugs. Also, US emissions requirements make them substantially more expensive to certify, and therefore to buy. But put aside (if you can) higher vehicle purchase and fuel prices, and today's diesel cars can be delightful to drive while delivering much better fuel efficiency than gas-powered versions. So far in the US, all except Chevrolet's compact Cruze Diesel come from German brands, and all are amazingly quiet, visually clean (no smoke) and can be torquey-fun to drive. When a GM Powertrain engineering team set out to modify a tried-and-true GM of Europe turbodiesel four for North American Chevy Cruze compacts, says assistant chief engineer Mike Siegrist, it had a clear target in mind: the Volkswagen Jetta TDI 2.0-liter diesel. And they'll tell you that they beat it in nearly every way. "I believe we have a superior product," he says. "It's powerful, efficient and clean, and it will change perceptions of what a diesel car can be." The 2.0L Cruze turbodiesel pumps out 151 SAE certified horses and 264 pound-feet of torque (at just 2,000 rpm) vs.

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.

Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.