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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.

Here's how Detroit is selling more luxury vehicles than Germany and Japan

Now there's an attention-grabbing headline, eh? Although the answer to the riddle - pickup trucks and SUVs - might be somehow deflating, the numbers involved deserve a going over. According to TrueCar's figures (click on the table to enlarge), six of the year's ten best-selling vehicles in the US that sell for a transaction price above $50,000 are body-on-frame, and the Mercedes-Benz E-Class is the only foreigner to crack the top five. Every enthusiast knows that pickup trucks are 'Murica's most popular vehicle by a colossal margin, and there have been plenty of reports about the popularity of luxuriously appointed trucks and SUVs, but compare these figures from TrueCar: 70 percent of Chevrolet Tahoe sales have a transaction price above $50K, and The Bowtie is expected to make $3.9 billion in revenue on 66,945 predicted high-dollar sales; 95.1 percent of E-Class sales break $50K, so the German company will make $4.0 billion on 67,006 predicted sales in that pricing sphere. It's about the only time you'll see the Tahoe ranked right next to Mercedes' bread-and-butter sedan. Ram is ahead of those two with $4.2B coming from $50K-plus sales. The Ford F-Series does almost as much revenue as the next three combined, with an expected $10.8 billion coming from sales of trucks over $50K - more than a quarter of the model's total sales, when a base F-150 can be had for about $26,000. Yes, the Germans make a lot more money on fewer sales, but considering the comparison, the bottom line isn't too troubled by such facts. Weighing like-for-like, the full-size Ford walks it in every category; elsewhere, the Chevrolet Silverado outsells the Ram, but the Ram outsells the Chevy by 6.7 percent above $50K. And for all the flak GMC takes over swapping out grilles, the Sierra also outsells the Chevy in the well-appointed segment, 16.1 percent of sales versus 11 percent – the Professional Grade brand is a huge profit center for The General. You'll find more info in the TrueCar press release below. TrueCar finds pickup trucks far outsell premium brands among top 10 vehicles over $50,000 Ford F-Series pickup sales over $50,000 surpass combined BMW 3, 5, 7 Series luxury car sales SANTA MONICA, Calif. (December 10, 2014) - TrueCar, Inc., the negotiation-free car buying and selling platform, finds mainstream pickup trucks and sport-utility vehicles dominate U.S.

CNG-powered Chevy Sonic, Cruze headed your way

The value proposition for a Crazy Diamond Performance CNG ride was a little bit better before gas prices took a dive in the past month. Still, the Michigan-based company, which converts some of Chevrolet's compact vehicles to run on compressed natural gas, received approval late last month from the US Environmental Protection Agency (EPA) for two of its conversion models. And CNG is still pretty cheap. Crazy Diamond will start selling CNG versions of both the Chevrolet Cruze and Chevrolet Sonic. The startup will target fleet operators looking to cut both refueling costs and their carbon footprint. CNG can be found in much of the country in the low $2 range, while the average CO2 emissions are about 25 percent less than those of similar gas-powered vehicles. Average gas prices have tumbled by more than 30 cents a gallon in the last month, according to AAA, but they're still at close to $3. The two models will be able to go almost 300 miles on a full tank of CNG. Crazy Diamond said this summer that it would start selling converted a CNG-powered Cruze that delivers 130 horsepower for as low as $26,000. The turbocharged version goes for about $28,000. Take a look at Crazy Diamond Performance's celebratory press release below. Crazy Diamond Performance recieves EPA approval on its CNG Cruze and Sonic CDP receives EPA approval for its Mono-Fuel CNG Cruze and Sonic. Shelby Township, Michigan, October 30, 2014– Crazy Diamond Performance (CDP) receives EPA approval on its Mono-Fuel Compressed Natural Gas (CNG) Chevrolet Cruze and Chevrolet Sonic. Crazy Diamond Performance has received EPA approval on two new mono-fuel small passenger vehicles, the CNG Chevrolet Cruze and CNG Chevrolet Sonic. These new mono-fuel CNG platforms are the first of a series of small and fuel efficient vehicles coming from CDP, where cost, low emissions and reduced fuel consumption is important for not only fleet owners, but to the general public as well. "Soon to be available, are the 1.8L and 1.4L Cruze and Sonic CNG retrofit systems. These two vehicles represent a change in the status quo, with an OEM level integration of the fuel system and its components" states Michelle Fern, Executive Vice President CDP Inc. These vehicles provide flexibility for fleets looking to purchase a domestic small mono-fuel passenger sedan, but have not had an option until now. There are significant emissions benefits over its gasoline counterpart, with an average reduction in Carbon Dioxide (CO2) of 25%.