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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.

NHTSA may greatly expand GM airbag recall

The National Highway Traffic Safety Administration is pondering whether to dramatically upscale a pair of airbag recalls on General Motors vehicles. The two existing campaigns, one launched in the fall of 2012 and the other in January of this year covered just 6,845 vehicles, but the government agency is considering whether to boost the recall to around 400,000 units.
The existing recalls involve the the closely related 2012 Buick Verano (shown) and Chevrolet Cruze sedans, along with Sonic and Camaro models. The root of the problem is a shorting bar in the inflator module of the steering-wheel-mounted airbag that may contact the primary state airbag terminal, a condition that could prevent deployment in an accident. Dealer technicians have been replacing the steering wheel airbag coils to fix the issue.
According to a post on NHTSA's website, the root cause, said to be a production issue, may not have been completely isolated - particularly for the second recall, which was for the Camaro. According to Automotive News, GM says it is cooperating with the government investigation, but won't say whether or not it knows the true origin of the problem.

2021 Ram TRX, BMW 5 Series and the end of the Alfa Romeo 4C | Autoblog Podcast #657

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski. They kick things off discussing the brand-new 2021 Ram 1500 TRX, discussing how it compares with its main rival, the Ford F-150 Raptor. They move on to the latest BMW 5 Series before a quick overview of the Buick Enclave. The podcast wraps up by saying goodbye to the Alfa Romeo 4C, which leaves the world after the 2020 model year. Autoblog Podcast #657 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown What we're driving2021 Ram 1500 TRX 2021 BMW 540i 2020 Buick Enclave Other news Goodbye, Alfa Romeo 4C Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: