1968 Chevrolet C-10 on 2040-cars

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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

Three automotive tech trends to watch in 2018 and beyond

Every year, technology plays a bigger and bigger role in the auto industry. To put things in perspective, 10 years ago iPod integration and Bluetooth were cutting-edge in-car innovations, and smartphones and apps weren't yet a thing since the first iPhone was only about six months old. And I can't recall anyone talking about autonomous cars. Compare that to today, with mainstream coverage of the auto industry dominated by autonomous technology, along with electrification and almost every move made by Tesla. These three topics were the most significant trends of car tech in 2017 and I believe they will continue to shape the auto industry in 2018 and beyond. Let's examine them. Full Autonomy Gets Closer to Reality While there were many developments this year that indicate we're inching closer to fully autonomous vehicles, I was behind the wheel for hours to witness one of them. In October I had the chance to test Cadillac Super Cruise on a 700-mile, 11-hour drive from Dallas to Santa Fe – and had my hands on the wheel for maybe 45 minutes max throughout the entire trip. Super Cruise is far from making the Cadillac CT6 or any GM vehicle fully autonomous, and has limitations such as functioning only on pre-mapped main highways. While it simply adds a layer of lane centering to adaptive cruise control, the technology will go a long way in making mainstream drivers more comfortable with letting machines take over. On a separate front, GM is pushing ahead with fully autonomous vehicles and announced last month that it plans to launch of fleets of self-driving robo-taxis in several urban areas in 2019. While most automakers are also in the race to make autonomous cars a reality, GM's turbocharging of its efforts appeared to be in response to Waymo, which announced just weeks earlier that its Early Rider Program in the Phoenix area would go completely driverless. The Early Rider Program launched last April, offering the public a chance to ride in Waymo's autonomous Chrysler Pacifica minivans. In this new phase of testing, Waymo is using its own employees as guinea pigs instead of the public while the vehicles operate without a human behind the wheel, and takes another giant step forward for fully autonomous driving.