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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.

New recall issued in 2019 Chevy Silverado and GMC Sierra brake software saga

General Motors (GM) has issued a new recall for select 2019 Chevy Silverado 1500 and GMC Sierra 1500 pickup trucks that aims to resolve a faulty fix for a previous recall. According to National Highway Traffic Safety Administration (NHTSA) campaign No. 20V055000, a software update for the Electronic Brake Control Module (EBCM) could cause the electronic brake assist to be disabled.  The NHTSA first launched a recall for 463,995 Silverados, Sierras, and Cadillac CT6es on December 12, 2019 due to a software issue in the electronic brake control module (EBCM) that could disable the electronic stability control (ESC) and anti-lock braking system (ABS). As a response and resolution to that recall, GM began to reprogram the software in affected vehicles. GM later learned that the fix was creating a different problem. The installed software had its own error that was disabling the electronic brake assist. If customers see “Service Brake Assist” or “Service ECS" diagnostic warnings, they should park the vehicle and have it towed to a dealership, GM warns. While GM was going through the process of testing, pinpointing the issue, determining action and working with the NHTSA, safety experts have criticized Chevrolet and GMC for not reacting promptly and appropriately.  According to the recall, 148,055 are now affected, all of which do not meet the standards of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic Stability Control" and 135, "Light Vehicle Brake Systems." To fix the braking issue, GM will once again reprogram the software. GM began notifying owners of the recall on February 10, 2020. Related Video:

2015 Chevy Tahoe gets Police Patrol Vehicle treatment

That was fast. Mere days after showing a Police Concept based on the 2015 Tahoe at the SEMA Show, Chevrolet has announced that it will build a PPV model based on the SUV to do battle with the Ford Police Interceptor Utility (Explorer) and Dodge Durango Special Service.
You'll recall that the Tahoe has been police staple for several years, predating both the Explorer and Durango police variants, so the fact that the new model would spawn a police variant is hardly surprising. Like the civilian model, the 2015 PPV benefits from a more efficient 5.3-liter, direct-injection V8 that pumps out 355 horsepower and 383 pound-feet of torque. It also features more high-strength steel, offering better crash protection, on top of optional safety items like lane departure warning, forward collision alert and a Safety Alert Seat.
The press release is rather light on police-specific items, aside from the auxiliary battery, which keeps the myriad of electronics in a modern police car running even when the engine isn't. Lightbars, 17-inch steel wheels on Goodyear Eagle RS-A tires and a push bar round out the mods for the Tahoe PPV. The cabin features a revised center console and room for laptop and other equipment mounts.