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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

GMC Terrain headlight recall fix is a sticker

This GMC Terrain recall over a headlight issue has gone from fascinating to absurd. It started when GMC discovered the headlights on the 2010-2017 Terrain were out of compliance with Federal Motor Vehicle Safety Standards (FMVSS). A pinpoint of low-beam light was being reflected off the high-beam reflector. This bounced a tiny sliver of bright light up into the trees and the sky beside the road, not into oncoming traffic. GMC did the right thing, reporting the noncompliance to the National Highway Traffic Safety Administration. Because the sliver of light was coming from the low beams and was four times brighter than the maximum allowable low beam brightness, the NHTSA told GMC to recall 740,581 units of the SUV. GMC asked for an exemption, admitting the bright spot could cause glare while noting the errant beam didn't affect other road users. The automaker hadn't received any complaints, only a comment from one owner saying the lights put a bright spot in the trees on the other side of the road. The NHTSA denied the request. GMC began notifying owners in April that they'd need to come in for a fix once a fix had been developed. That's the fascinating part. The absurd part, which Tire Meets Road uncovered, is that the fix is a "Headlamp Applique Kit." Which is a piece of frosted tape applied to the outside of the headlight that lets low-beam light through and tamps down any potential glare from the caroming beam. Notice that the parallelogram of frosted tape matches the L-shaped frosted area along the inside of the headlight housing. That portion was already a feature of the lamp, as can be seen in our 2016 Terrain Denali Quick Spin. The repair needs a trip to the dealer for a tech to place a positioning template over the headlight and put the applique kit in the proper spot. GM's instruction kit says the whole thing should take 0.2 of an hour, or 12 minutes—about the time it it would take to get checked into and out of the dealership service department. Owners aren't impressed, some calling the fix unnecessary and ridiculous, and the tape should make it clear that GMC feels the same way. Some owners have said they're going to skip the recall. Those drivers will find that just as GMC couldn't escape the legal ramifications, neither can they. Local motor vehicle bureaus keep track of recall compliance.

Next-generation GMC Canyon, Chevy Colorado spied together

With the debut of the next-generation GMC Canyon coming in a couple of months (in off-road-ready AT4 guise no less), it's no surprise that both it and the Chevy Colorado are out testing without the heavy coverings of early prototypes. One of our spy photographers caught examples of both trucks with close-fitting vinyl wraps. This gives us a great opportunity to see each pickup more clearly, but also to compare and contrast the designs. From the front, the GMC features a narrower, but seemingly taller grille. At the top are slender lamps. They seem to be daytime running lights, though, and below them are much larger units that will function as the actual headlights. The prototype shown seems to be one of the AT4 variants, based on the lack of a lower air dam and the opened up corners of each bumper. Small fog lights show up in the lower bumper, too. As for the Chevy, its grille is wider, and it blends into the headlights. The lights are at the top of the grille, and they seem to incorporate the actual headlights, not just running lamps. The grille mesh has some interesting detailing, and there are auxiliary lights below the main headlights. This one seems to be a more mainstream Colorado model since it still has a front air dam, possibly a Z71 model, considering the chunky tires. Not surprisingly, the two trucks are very similar from the sides and the rear. They have cabins that look lower, longer and more squared-off than the current models. The fenders look more punched out and aggressive, too. The main differentiator between the Chevy and GMC are the wheel openings. The GMC has sharp corners and the Chevy has more rounded ones, as is the case with the full-size trucks. As previously mentioned, the GMC Canyon AT4 will be revealed this summer, so likely in just a month or two. The Colorado will likely be revealed this summer, too. It's expected that it will use the turbocharged 2.7-liter four-cylinder shared with the Silverado. Naturally, it will be available with two- and four-wheel drive and a variety of trim levels including the AT4 and ZR2 off-road versions. Related video: