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GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.

Buick prepares Super Bowl ad blitz to introduce Cascada

Super Bowl 50 will kick off on February 7, and Buick will use the big game's massive audience to get the word out about the new Cascada convertible. The the broadcast spot will be paired with a humorous digital campaign to advertise the convertible online. Buick hasn't released the 30-second Super Bowl commercial yet, but a teaser image shows that it stars New York Giants wide receiver Odell Beckham, Jr. and actress Emily Ratajkowski, known for roles in the films Gone Girl and Entourage. The ad is part of the "Experience the New Buick" campaign, which aims to position the brand to appeal to a younger demographic. The brand also has Ellie Kemper, the star of Netflix's hilarious Unbreakable Kimmy Schmidt and Erin on The Office, to sell the Cascada, Regal, Encore, and Enclave in a new online campaign. She plays an exaggerated version of herself and flirts with a guy who thinks Kemper owns Buick's new convertible. The spot tries to capitalize on the quirky charm of the actor's Kimmy Schmidt character. Buick will cut the longer clip (below) into vignettes for ads on sites like YouTube. Buick spokesperson Crystal Wilson told Autoblog that viewers' reactions to Kemper's commercial have been "totally positive" so far. First-Ever Buick Super Bowl Ad Features Odell Beckham Jr. and Emily Ratajkowski Latest "Experience the New Buick" ad spotlights new Cascada convertible 2016-01-26 DETROIT – Buick's first-ever Super Bowl ad will bring the brand's award-winning "Experience the New Buick" campaign to the biggest night in TV advertising. The campaign launched in 2014 and challenges consumers' false perceptions of the brand. The 30-second spot, scheduled to air during Super Bowl 50, features Buick's all-new Cascada luxury convertible and stars New York Giants wide receiver Odell Beckham Jr. and actress/model Emily Ratajkowski. The spot will be the first new Buick commercial to air in 2016, a year where the brand will launch three new products. The Cascada, Buick's first convertible in 25 years, arrives in dealerships in the coming weeks. It features an athletic and sculptural beauty that delivers a distinctive profile, whether the top is up or down. Along with the perception-shifting Cascada, Buick showrooms will soon feature a redesigned LaCrosse sedan and the new Envision, a compact crossover. Both go on sale this summer.

GM finds steering flaw, decides it doesn't warrant a recall

Guess what? General Motors is back in the spotlight for not recalling something. This time, though, not only does the company have an argument against a recall campaign, but its position is supported by the National Highway Traffic Safety Administration. According to The New York Times, over 50 owners of GM vehicles have reported instances of stuck or seized steering after driving long distances without moving the wheel. One owner complained to NHTSA that the "locked" steering of their 2013 Buick Verano caused a collision with a concrete barrier in a construction zone. Along with the 2013 to 2014 model year Verano sedans, Chevrolet Cruze and Malibu sedans are also affected. Considering the popularity of those models, GM needs to have a reason for not issuing a recall, right? "Based on a very low rate of occurrence – ranging from less than one half to less than two incidents per thousand vehicles – and the fact that the condition is remedied when the wheel is turned, GM determined this was not a safety issue," spokesman Alan Adler told The Times. The company has, however, issued a technical service bulletin for owners that complain of the problem. The fix is nothing more than a software update that is covered for 10 years or 150,000 miles from new. NHTSA cited GM's actions, along with descriptions of the problems from customers, in its decision not to issue a recall, with spokeswoman Catherine Howden saying, "the symptoms described would be a brief, perceptible change in steering feel that has little to no effect on the driver's ability to safely steer the vehicle." "When terms like 'notchy,' 'stick,' 'slip' or 'feel' are used, it does not indicate a meaningful increase in steering effort," Howden told The Times via email. What do you think? Is GM in the wrong here? Should there be a recall, or is the issue so limited as to not warrant one? Have your say in Comments. Featured Gallery 2013 Buick Verano Turbo: Review View 20 Photos Related Gallery 2014 Chevrolet Malibu: First Drive View 36 Photos Related Gallery 2014 Chevrolet Cruze Turbo Diesel: Quick Spin View 14 Photos News Source: The New York TimesImage Credit: Copyright 2015 Steven J. Ewing, Seyth Miersma / AOL Government/Legal Recalls Buick Chevrolet GM Safety Sedan buick verano