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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 mulling more powerful Encore; diesel too

Looking to set itself apart in the mid-luxury segment, Buick is looking to introduce a diesel engine somewhere in its US lineup. And according to Edmunds, the two best chances of a diesel Buick rest with the Encore and Verano.
In both our First Drive and Review of the 2013 Encore, our chief complaint about the compact crossover was the the lack of power from the 138-horsepower turbo engine. Edmunds says that the recently introduced 1.6-liter four-cylinder engine (with both gas and diesel variants) from the Encore's overseas cousin, the Opel Mokka, could make its way into the Encore delivering the much-needed boost in power.
Then there's the Verano. As a close relative to the Chevy Cruze, which just added a diesel engine for 2014, the article speculates that a Verano Diesel might actually be the more "probably candidate" if and when Buick decides to add a diesel model to its portfolio. Either way, offering such an engine in one of its products could be a great way for Buick to differentiate itself from Cadillac and possibly even attract buyers from Volkswagen, Audi and Mercedes-Benz looking for a luxurious, fuel-efficient vehicle.

2020 Buick Encore GX revealed as a bigger smaller crossover

The crossover craze has taken root throughout the car industry, but especially at Buick. The company says that 90% of its sales are of the upright utilities. So it's no surprise the brand is adding yet another model to the line-up, the 2020 Buick Encore GX. Despite the name, the Encore GX doesn't appear to share anything with the current Encore, as GM says it uses a new platform. It's also larger than the regular Encore, though it's also smaller than the midsize Envision. One area in which its slightly bigger size benefits the GX is that it has nearly five more cubic feet of cargo space than the current Encore. Other details about the crossover are scant. Buick hasn't even said what engine or transmission will be used. Buick did say the Encore GX will feature automatic emergency braking with pedestrian detection and lane-keep assist as standard features, with the rear-camera mirror as an option. The current Encore will continue to be sold alongside the Encore GX, and it won't be replaced with the version shown at the Shanghai Auto Show. Pricing and availability will be announced later, along with other vehicle details.