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Weekly Recap: Auto execs face life in prison for recall delays under proposed legislation

The stiff punishments are part of broader transportation legislation, but clearly McCaskill has automakers in her sights.
Missouri Senator Claire McCaskill threw down the gauntlet this week, proposing a bill that could send auto executives to prison for life if they were found to have delayed a recall. She also wants to eliminate the limit for fines for auto safety violations, which are currently capped at $35 million.

GM Design shows another early Hummer EV sketch

Like a new mother who's still so excited about her one-year-old baby that she can't stop showing ultrasound photos, General Motors is so excited about its biggest new baby, the battery-electric GMC Hummer, that it can't stop showing off development design sketches. The off-road monster with the 200-kWh Ultium battery pack debuted online on October 21 last year. The next day, the GM Design Instagram page posted some of the Hummer's early "theme sketches" leading to the production version. These had a conceptual flair to them, but were rather restrained. A month later, GM uncovered a series of development renderings showing off a much wilder truck bursting with more angles than a geometry text book. The archives have opened up again with a new "ideation sketch," this one between the first believable sketches and the second truck that Master Chief and Doomguy share on their days off.  All three sets of drawings show similar three-box proportions, it's the details that got a ton of love. On this newest sketch, the fenders flare a touch more than on the production truck, but the wheel wells are cut with the kind of clearance found on a Baja 1000 Trophy Truck. Out back, save for the tow hooks, the rear end is totally different than production. The sketch puts illuminated Hummer script across a narrow tailgate flanked by small square, taillights housing six individual elements. Beneath that, a bumper-less rear end puts nothing more than a sloped bash pate between the truck and the rocks it's just scrambled over. To our eyes, this is the best blend of production-ready comfort from the first sketches and zoot suit angles from the second that we've seen so far.  First deliveries of the GMC Hummer EV Edition 1 are expected before the year is out. When we get a chance to absorb the truck in its native habitats, we'll know whether there's cause for disappointment at what could have been. If so, with all this hunger among the monied for something different, we feel like restomodders have been given the perfect head starts on custom rebodied Hummers that would make things right. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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.