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GM posts $4 billion third-quarter profit thanks to trucks and SUVs

DETROIT — General Motors is posting huge third quarter numbers, pulling in $4 billion in profit over three months after losing money due to the virus outbreak. GM's adjusted earnings were $2.83 per share, easily outpacing Wall Street's per-share projections of $1.43, according to a survey by FactSet. Revenue of $35.5 billion also edged out most expectations. Shares jumped almost 6% before the opening bell Thursday. The company swung back from a $806 million loss in the second quarter, when it was restarting factories shuttered for safety during the early stages of the pandemic. The Detroit automaker joined most global automakers in reporting better-than-expected earnings from July through September as sales across the globe started to rebound from coronavirus lockdowns, especially in China. GM sales in China jumped 12% in the third quarter, with sales of its Buick and Cadillac brands both rising more than 25%. In the U.S., GMÂ’s most profitable market, sales fell 9.9% in the third quarter compared with a year ago, but were a dramatic improvement over the 34% drop in the second quarter. Sales improved sequentially each month, the automaker said, an encouraging trend. GMÂ’s profit was boosted by higher-priced pickup trucks and large SUVs, which have seen strong sales in the U.S. through the pandemic. It was the best quarter on record for GM's Chevrolet Blazer. Sales of the Cadillac XT6 spiked 45% in the U.S. over last year. Large pickups also sold well. GM also said it was pumping $2 billion into its Spring Hill, Tennessee manufacturing plant to push its transition to produce electric vehicles. Last week, crosstown rivals Fiat Chrysler and Ford reported strong third-quarter net income. FCA said it made $1.4 billion for the period, while Ford earned $2.39 billion. Related Video: Earnings/Financials Buick Cadillac Chevrolet GM GMC

U.S. Army purchases GMC Hummer EV for Light Recon Vehicle testing

The military has been analyzing alternative powertrains for a while, and working with GM vehicular products in that field for at least seven years. In 2016, we got a look at a rebodied Chevrolet Colorado ZR2 with a hydrogen fuel cell powertrain developed by GM and the US Army Tank Automotive Research Development and Engineering Center. In 2017, the automaker created its GM Defense division, winning two contracts for conventionally powered trucks in 2020 and 2021. The Detroit Free Press reports that alt-energy is heavy in the frame, the Army having opened a bid for an electric Light Reconnaissance Vehicle (eLRV). Ten companies showed up with product for a demo last year, at least two of which were electric. The U.S. military's largest branch already purchased a single Canoo EV for testing, now it's also bought a new GMC Hummer EV. It's possible that the specific capabilities of an EV are responsible for the Army's quest. The branch canceled its previous LRV program in 2016 that intended to replace the Scout HMMWVs, which were purpose-built versions of the ubiquitous old Hummer. Military.com wrote that the parameters for that search were a rig that could "carry six soldiers, with a total payload 2,100 pounds. The vehicle must not exceed 11,669 pounds so it can be carried internally or sling-loaded by a CH-47 Chinook helicopter. The vehicle must be capable of mounting a weapon system, such as a 30mm cannon, which can engage targets accurately at a range of at least 1,000 meters." Last November, CNBC reported GM Defense was working on a Hummer EV-based military vehicle. Hummer being Hummer, it's likely GM began exploring the martial route once it greenlit the return of the brand. Last year, Defense Secretary Kathleen Hicks told CNBC, "Electrifying the non-tactical fleet, that’s a no-brainer," but the search for an eLRV signals an eye on something more intense than shuttling troops. Breaking Defense reported in 2020 that the Army was "working with a non-profit consortium of more than 200 companies and universities developing clean transportation technologies, CALSTART." Task and Purpose said the Army's brief for eLRV missions was, "'enhanced mobility, lethality, protection, mission load capacity, and onboard power' for six soldiers to conduct both mounted and dismounted reconnaissance and surveillance missions for Infantry Brigade Combat Teams." That's not necessarily frontline service, but it's not necessarily a garrison shuttle, either.

GM CEO Barra says 'we are selling every truck we can build'

DETROIT — General Motors Chief Executive Mary Barra said on Monday the automaker is "selling every truck we can build" and expanding North American truck-building capacity, even as U.S. gasoline prices hit record highs. Barra made her comments during the automaker's annual shareholder meeting. GM is pursuing a two-track strategy: Investing heavily in electric vehicles for North America, China and other markets, and funding those investments by trying to maximize profits from its North American combustion pickup truck and large SUV lineups. Barra said GM is planning higher-priced versions of its Silverado large pickup and its large SUV models. GM and its Detroit rivals Ford Motor Co and Stellantis NV rely heavily on sales of large pickup trucks and SUVs for global profits. High U.S. gasoline prices in the past have undermined consumer demand for relatively inefficient models. Nominal pump prices hit an average of above $5 a gallon for the first time ever last week, the federal government said Friday. GM is ramping up production of EVs. Barra said the Cadillac Lyriq electric sport utility is sold out through 2023. In response to shareholder questions, Barra said the "clear priority" for using cash generated by its operations is to "accelerate our EV plans." She did not rule out share buybacks or other approaches to returning cash to shareholders. GM still expects to increase production this year by 25-30%, despite continuing pressure on semiconductor supplies globally. Barra said GM is working to redesign vehicles to reduce the number of processors required by 95%. Barra serves as GM's board chair and CEO. GM shareholders overwhelmingly rejected a proposal to separate those roles.