1969 Chevelle Malibu Vin 136699k378415 on 2040-cars

Auto blog

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

GM to squeeze out more production capacity for midsize trucks

General Motors was predicting a strong showing for the Chevrolet Colorado and GMC Canyon before they debuted, and demand among dealers for the midsize trucks even exceeded company's expectations. The positive situation has left GM with a problem, though: finding ways to increase capacity for the pickups at the Wentzville Assembly plant in Missiouri. With a third shift already running, GM has continued to look for ways to build just a few more of the trucks at the plant. The company has plans to hire as many as 1,000 more workers for the Saturday and Sunday shifts to construct an additional 2,000 pickups a month, according to unnamed insiders at the factory speaking to Automotive News. The little adjustments even extend to getting rid of an unpaid break to add 18 minute of assembly time over the course of a day, which equals about 3,500 more vehicles a year. All of this effort comes because the trucks are in such high demand. According to GM's figures, the company has delivered a combined 35,720 units of the Colorado and Canyon from January through April 2015, and the Chevy was the fastest-selling truck in the US for the previous three months. In May, it spent an average of just 12 days in showrooms before being snapped up. And even better for the company, 43 percent of these buyers came from other brands. According to Automotive News, the most popular trade-ins have included the Ford F-150, Toyota Tacoma, and Dodge Dakota. Related Video:

2015 Chevy Volt will be available with 4G LTE

General Motors teased consumers two years ago when it showed off a Chevrolet Volt decked out with 4G LTE connectivity. More details were finally unveiled this month at the Consumer Electronics Show in Las Vegas: the 2015 Chevy Volt will have a 4G LTE option and will offer consumers an as-yet-unpriced option with much faster wireless internet connection and more smartphone apps. GM's OnStar has teamed up with AT&T to come up with several mobile apps alongside the roadside assistance. The Volt joins the 2015 Corvette, Impala and Malibuz models that will debut with a 4G LTE option this year. The first four 4G ChevroLTE models will be released this summer and will be joined by the Spark (EV and gas versions), Equinox, Silverado and Silverado HD. GM has yet to announce whether any Cadillac or Buick models will get the 4G option. Chevrolet Accelerates to 4G LTE Speeds in 2014 Bowtie brand models in U.S. and Canada to get OnStar 4G LTE by summer LAS VEGAS – Starting this summer, Chevrolet will have some of the fastest vehicles on the roads, and that has nothing to do with horsepower. Chevrolet drivers will be enjoying high-speed data - made possible by a new OnStar 4G LTE connection in the vehicle, running on AT&T's network, the nation's fastest and most reliable 4G LTE network. Chevrolet today announced at the Consumer Electronics Show that the 2015 Chevrolet Corvette, Impala, Malibu, and Volt would be the first General Motors' vehicles to come optionally equipped with OnStar 4G LTE. They will be followed by the Equinox, Silverado, Silverado HD, Spark and Spark EV. In the Canadian market, OnStar with 4G LTE will be introduced on the Chevrolet Trax as well. The majority of the 2015 Chevrolet lineup in the U.S and Canada will have a 4G LTE connection built-in at vehicle launch. More models will be announced later this year. "Chevrolet is expected to implement the broadest deployment of 4G LTE in the automotive industry," said Alan Batey, senior vice president of Global Chevrolet. "The fact that OnStar with 4G LTE will be available in models that range from the Chevrolet Spark to the Silverado to the Corvette, is indicative of our broad commitment to deliver more value and convenience through smart technology applications.