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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.

Was the C7 Corvette cut from Beyonce's Super Bowl halftime show?

Someone was bound to receive a free 2014 Chevrolet Corvette Stingray during the Super Bowl XLVII festivities; it just wasn't who we thought it was going to be. Despite a report back in December that superstar Beyoncé Knowles would be getting an all-new Corvette during her halftime performance, that turned out not to be the case. Joe Flacco, starting quarterback for the Baltimore Ravens, did in fact win a Corvette for his MVP performance.
So what transpired that prevented Beyoncé from rolling on stage in the new Chevrolet? Anyone who knows isn't telling, but according to Yahoo! Autos, General Motors said that for one reason or another a deal "did not work out," and it appears to have been an eleventh-hour change. Regardless of who's to blame or what prevented this from happening, we're sure Chevy has had no problems getting attention for the C7 Corvette since it was introduced last month.

Opel's version of the Chevy Bolt will confuse people at Paris Motor Show

Two things are now official. First, Opel will reveal the Ampera-e, or the European version of the Chevrolet Bolt, at the Paris Motor Show in October. Second, General Motors has outdone itself in brand confusion, topping the Bolt/Volt ridiculousness. Opel isn't giving a single-charge range for the Ampera-e but the company is promising a "significantly longer range" than other electric vehicles. The Bolt is estimated to have a 200-mile range on the EPA scale, so whatever the Opel achieves on the European cycle will be done with the same batteries and motor as the Chevy. Opel is also looking to appeal to the auto enthusiasts with other factoids, which are basically just Bolt stats translated into metric. For instance, the Ampera-e will be able to go 0 to 50 kilometers per hour (which is 31 miles per hour to us Americans, but we're talking Europe here) in just 3.2 seconds. And for those looking to stay connected, as many as seven mobile devices can attached to the car's wireless hot spot. GM said in February that the European of the Bolt would be available across the pond next year, so the most recent bit of news isn't shocking. Still, General Motors continues to create confusion between all-electric Bolt and the extended-range plug-in Volt. It's already been reported that the Korean symbol and pronunciation of what is "B" in English is identical to the English "V," meaning that there is no difference between "Bolt" and "Volt" in that country (though there are no plans to sell the Bolt in South Korea as of yet). Now, in Europe, they're taking the name they used to use for the European of the Volt — Ampera — and merely adding an "-e" at the end of it. For those looking to be less confused, take a look at Opel's press release here. Related Video: Featured Gallery 2017 Opel Ampera-e: Paris 2016 View 11 Photos News Source: Opel via Hybrid CarsImage Credit: Live photos copyright 2016 Drew Phillips / Autoblog Green Paris Motor Show Chevrolet GM Opel Electric Chevy Bolt volt ampera opel ampera-e ampera-e