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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.

2016 Camaro gets most revealing tease yet

Chevrolet started its long teaser campaign for the 2016 Camaro by just revealing the exhaust manifold and front frame, but as time has passed the company has slowly unveiled more. In the latest glimpse ahead of the pony car's May 16 debut, we're actually getting to see the model's profile completely undisguised. As suggested by the recent tease of the rear and hood, the 2016 Camaro wears a sharper, more angular design than the current model. This is especially the case when you look at the taut lines making up the rear. Chevy claims that the new shape underwent 350 hours of wind tunnel tests to be able to generate left lift, improve cooling and reduce wind noise in the cabin. A smooth underbody pan is among the aerodynamic tweaks, and it runs from underneath the front grille to the center of the Camaro. Chevy asserts that all of the changes at the front help reduce lift by 30 percent. Related VIdeo: 2016 Camaro is all about the Aero Total aerodynamic lift improved by 30 percent for improved stability 2015-05-11 DETROIT – After 350 hours of wind tunnel testing – often 24 hours a day – the new Camaro will slip more easily through the wind, and drivers of the Camaro SS will experience a marked improvement in reduced aerodynamic lift. These changes illustrate the lengths the aerodynamics team went to for improved performance, stability, cooling and lower wind noise intrusion "The importance of aerodynamics increases exponentially as we increase vehicle performance," said Kirk Bennion, Exterior Design manager. "As engine output increases, we need more engine cooling. As acceleration and top speeds climb, we need to reduce lift for better high-speed stability. However, we cannot make any changes at the expense of increasing drag, which can hurt fuel economy. "To balance these different aerodynamic targets, we tested literally hundreds of changes on the new Camaro, millimeters at a time." For example, the initial design called for the lower grille bars to be set at a 20-degree angle to the horizon. However, after meticulous testing, the team improved engine-cooling airflow by 1 percent by shifting the angle to 13 degrees – a change that achieved the airflow target while maintaining the original grille design. And rather than a traditional front air dam to reduce aerodynamic lift, the team developed a flush belly pan that stretches from the front grille to the center of the vehicle.

Ferrari SUV and Aston Martin in Formula E? | Autoblog Podcast #529

This week, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder. They discuss Ferrari's SUV plans as well as Aston Martin's Formula E consideration. They also talk about cars we've driven including the Chevy Colorado ZR2, a Nissan Rogue ProPilot prototype and a Ford Shelby GT350. This week's podcast also features a car you don't need a license to drive. Autoblog Podcast #529 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Ferrari SUV FCA keeping Jeep Aston Martin mulls Formula E Cars in the office: Ford Shelby GT350, Chevrolet Colorado ZR2, Nissan Rogue with ProPilot Assist The List: Drive a car that requires no license 3 Big Questions: Ferrari SUV or Lamborghini SUV? Chevy Colorado ZR2 or Toyota Tacoma TRD Pro? Ford Shelby GT350 with or without Performance Package? Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Green Podcasts Aston Martin Chevrolet Ferrari Ford Jeep Lamborghini Nissan SUV Electric Performance Videos Formula E shelby nissan propilot