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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.

2021 GMC Yukon will pull a 180 thanks to a Hurricane Turn feature

GMC isn't a hip, young startup, but its engineers are out to prove it's possible to teach an old dog new tricks. The next-generation Yukon will offer adventurers seeking a quick turn-around a "Hurricane Turn" feature that functions a lot like Rivian's Tank Turn technology. The two systems use different hardware to perform a similar action. We didn't hear anything about the Hurricane Turn feature during the Yukon's unveiling because GMC planned to keep it under wraps until later, but an eagle-eyed report at Motor Trend uncovered it and quizzed the firm. It's real, and it's engaged when the driver switches the stability control system off, energetically turns the steering wheel in either direction, and mashes the accelerator pedal to the floor. The Yukon needs to be on a loose surface, too. If you're turning right, the on-board computer applies braking power to the passenger-side wheels to prevent them from spinning, while the engine continues to turn the driver-side wheels to rotate the Yukon on its own axis. The exact opposite happens if you're turning left. It's clever and relatively simple; there's no extra hardware required to enable the feature, though it shows the next Yukon is far more advanced than its predecessor. It goes without saying that only four-wheel drive models will receive the Hurricane Turn feature. There's no word yet on whether it will be compatible with all three engine options, or if it will be limited to a certain trim level. GMC will publish additional details about the system, and hopefully a video of it in action, in the coming months. Rivian, on the other hand, leveraged its four-motor electric powertrain to teach the R1T (and presumably the R1S) how to pull a 180. The right wheels turn in the opposite directions as the left wheels – hence the name Tank Turn – to spin the truck around like a CD in a Walkman. Its system doesn't use the brakes. The 2021 Yukon is due in showrooms in the summer of 2020, and Amazon-funded Rivian won't start making the R1S until the end of 2020 at the earliest, so GMC will beat its younger rival to the punch. What remains to be seen is how often motorists use either function. We're betting not very once the initial novelty wears off. Related Video:    

2014 GMC Sierra Regular Cab revealed

Despite initially launching in just the Crew Cab configuration, the lineup of 2014 GMC Sierra and 2014 Chevrolet Silverado trucks will eventually grow to include three cab sizes and three bed lengths. Oddly enough, our first look at the Regular Cab bodystyle has arrived in a General Motors press release discussing the aerodynamics of the new truck, with an image showing a Sierra Regular Cab testing in the wind tunnel. GMC's website says that Regular Cab and Double Cab models will be available by summer.
While it really didn't take too much imagination to figure out what the two-door version would look like, this Regular Cab Z71 looks pretty sharp with its standard-length (6.5-feet) bed - a longer bed will also be offered. In regards to the aero tuning of the 2014 Sierra, these images show just how far GM has gone in maximizing the truck's fuel efficiency and reducing its noise, vibration and harshness (NVH) levels. Interestingly, the press release shows visual evidence that keeping the tailgate up is best for aero - there's always been some Mythbusters-level contention about such things -but GM also says that adding tonneau covers (preferably soft) and running boards can also help improve the overall aerodynamics. Scroll down for all of this aero info in the official press release.