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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.

2024 GMC Acadia gets bigger, goes entirely turbocharged

For an entire generation now, the GMC Acadia, the brand's largest unibody SUV, has sat in an unusual zone in between the typical midsize two-row and large three-row segments. But the completely redesigned 2024 Acadia is stepping confidently into the latter camp, growing to roughly match its cousin, the also fully redesigned 2024 Chevy Traverse. And adding to its greater size and performance, the Acadia brings unique exterior and interior design. The size increase is impressive. The wheelbase has grown 10.6 inches, overall length by 8.4, and overall height by 3.2. GMC claims this has increased cargo space by 80% and second-row seat room by 27%. These changes all make it about the same size as the Chevy, too, instead of a smaller option.  This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. That doesn't mean the two look the same, though. The front fascia clearly borrows heavily from the GMC Sierra 1500 with a tall grille and C-bracket headlights. The flanks really depart from the aggressive shape of the Traverse. It also skips the fat C-pillar. GMC designers noted they specifically worked to reduce the size of that pillar, in part to improve visibility for third-row passengers. Conversely, the D-pillar is relatively large and is finished in body color to reveal it. But to keep it from looking overly large, there's a black plastic panel that helps give the rear window a bit of a wraparound effect. The taillights also have a gloss black panel to blend them into the rear window area and reduce the visual mass of the hatchback. The interior is the biggest differentiator between the Traverse and Acadia, though. The entire dashboard is unique to the Acadia. The 11-inch instrument display sits under a cowl that extends horizontally to meet the unique vertical 15-inch infotainment screen. That screen overlaps a squared-off, horizontal dash design, and it's flanked by vertical air vents. The Acadia picks up a column-mounted shifter, too, freeing up space for storage in the center console. There are practically no parts directly pulled from other GM products. And unlike GM's upcoming EVs, the Acadia will have Apple CarPlay and Android Auto functionality. Individual Acadia models even have unique features. The luxury Denali trim and off-road focused AT4 trim both return. The AT4 stands out the most with an extra inch of ground clearance in part from the all-terrain tires on 18-inch wheels.

GMC considers adding more vehicles to broaden product line

GMC is considering expanding its product portfolio in the next 10 years to allow it to reach more potential buyers and grow sales, a top executive said Monday. The small and midsize sport-utility-vehicle segments are two possibilities, said Duncan Aldred, GMC sales and marketing vice president. He also said GMC won't make a car, preferring to reinforce its reputation as a maker of trucks and SUVs. "There's plenty of opportunities even if we define ourselves as a we do as a truck and crossover brand," he said. He wouldn't comment on the possibility of adding a Jeep Wrangler-fighter, though rumors have swirled for months that GMC is considering a product to compete with the iconic off-roader. "I can't confirm that ... everything's on the table," he said. He also said that it's possible GMC could get a unique set of underpinnings – all of its vehicles share platforms that are also used by Chevrolet – but it's not needed to differentiate his brand. "I'm very happy sharing underpinnings and everything else," he said. "All of the good-performing automakers do that." Speaking to journalists at a roundtable at General Motors headquarters in Detroit, Aldred said GMC received an investment from GM that is double what the brand has historically spent to fund its growth plans. Advertising spending alone will increase 50 percent this year compared with 2014. The brand rolled out a new ad campaign on Monday, called "Precision," that will underscore attention-to-detail and the premium features of GMC vehicles. Two of the commercials have a sporting theme, and the third focuses on modern menswear. GMC called it a "contemporary interpretation" of the brand's traditional positioning, and it will also continue to use its long-running "Professional Grade" tagline. The premium positioning of the ads come as buyers are increasingly outfitting their trucks as near-luxury vehicles. The percentage of buyers opting for the top-end Denali trim has increased from 17 percent in the middle of 2014 to 21 percent now. The goal is to get Denali to make up 25 percent of GMC sales by the end of 2017, Aldred said. Spurred by the higher Denali take-rate, the brand's transaction prices leapt by $3,000 last year. "It's [Denali] really kind of this jewel in the crown," Aldred said. GMC sales increased 11.3 percent in 2014 to 501,853 units, making it GM's-second-best-selling brand behind Chevrolet.