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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.

Experience the New York Auto Show by drone

The Autoblog team recently returned from wildly running around the Javits Center to cover all the news and debuts at the New York Auto Show. Sometimes, it's nice to take a more serene look at the exhibition floor, though, and the event's organizers are providing that exact opportunity by flying a drone through the hall. Combined with the down-tempo music, this clip feels like a form of automotive meditation. If you're going to miss the show in the Big Apple, the drone also provides a good overview at the exhibition floor, especially at the stands from Lexus, Buick, Dodge, Mercedes-Benz, Toyota and BMW. Plus, it's a fun way to see some vehicles from a completely different angle than they ever appear on the road. Related Video: News Source: New York International Auto Show via YouTube Auto News New York Auto Show BMW Buick Dodge Honda Lexus Mercedes-Benz Toyota Videos drone 2015 ny auto show

Junkyard Gem: 2006 Buick Lucerne CXL

When The General's Buick Division axed the LeSabre and Park Avenue names in 2005 (after 46 and 30 years, respectively, though the Park Avenue returned a few years later in China), the replacement top-of-the-line Buick sedan became the new Lucerne. It wasn't the Buick with the biggest price tag that year— those honors went to the Terraza minivan and Rainier SUV— but it became the flag-bearer for a bloodline of cushy, prestigious Buick sedans that stretched all the way back to the early days of the American auto industry. Lucerne sales for the 2006 and 2007 model years went pretty well, and now enough time has passed that some of these cars are showing up in the self-service car boneyards I frequent. Here's a first-year example with the optional Northstar V8 engine, found in a Northern California yard last summer. Plenty of American cars have been named after cities in Italy, France, and Spain, but the Lucerne is the only one I can think of that bears the name of a Swiss city (to be fair, the entire Chevrolet Division is named after a Swiss man, so Switzerland didn't really get shortchanged by The General in the naming department). CXL was the Lucerne's mid-grade trim level, sandwiched between the CX and CSX. The high-zoot Lucerne CSX got the 4.6-liter Northstar as standard equipment, but this quad-cam V8 and its 279 horses cost extra on the CXL. The base engine for the CX and CXL was the good old 3.8-liter pushrod Buick V6, rated at 197 horsepower. No US-market 2006 Buick could be purchased new with a manual transmission; this car has a four-speed automatic. In a Buick tradition stretching back to the late 1940s, this car boasts flashy "Ventiports" on the fenders. In past years, the number of ports on each side designated the car's intended swank level; starting with the Lucerne, they indicated the number of engine cylinders. So, when you're crawling around your local Ewe Pullet and looking for Northstars, seek out the Lucernes with the four-hole Ventiports. "Leather-appointed" power bucket seats and "wood-toned" trim were standard on the CXL, as well as an MP3-capable CD player with six speakers. By 2006, most American vehicle shoppers seeking something big and luxurious chose trucks and truck-like machines, but the market still supported quite a few sedan models such as the Lucerne. Most US-market GM vehicles got these little square "Mark of Excellence" fender badges during the late 2000s.