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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.

First 2015 Chevy Corvette Z06 engine blows up at just 891 miles

You've waited and watched and waited some more for the arrival of your 650-horsepower, $78,000 Chevrolet Corvette Z06. Finally, that joyous day arrives and you eagerly, but gingerly, begin to break-in the 6.2-liter supercharged V8 monster under your hood. Then 900-odd miles after delivery, your excitement grinds, quite literally, to a halt. That's what the owner of one 2015 Z06 claimed happened to him when a simple break-in drive resulted in a lunched engine. The owner, known as Lawdogg149 on Corvette Forum, says he was out breaking-in his car ahead of a January track event when it happened. "While making a pull from 35 miles per hour, I accelerated and shifted short of redline, and boom - the car began knocking. I pulled over and popped the hood. I could hear a loud knock coming from the No. 6 cylinder area along with a serious, grinding, metal-on-metal sound coming from the supercharger area," Lawdogg wrote. A subsequent trip to the dealer confirmed his concerns, with the service facility telling Lawdogg that the No. 6 valvetrain had failed. The dealer couldn't research the issue further, though, as General Motors requested the engine be returned for a more thorough evaluation. The good news for the Z06's unlucky owner, at least, is that GM will be covering the engine replacement under warranty, an expense that Corvette Forum estimates is a nearly $24,000 procedure. At this point, the two leading theories behind the engine's detonation involve a manufacturing defect – which could be why GM is so keen to tear the blown powerplant down – or a mistake on the part of Lawdogg. As Motor Authority points out, such an error could be something as simple as the Z06's owner accidentally shifting to first rather than third during his 35-mph pull. If, however, there's a deeper manufacturing problem with the Z06's engine, this might not be the only case we end up hearing about.

Pony-car sales war: Mustang vs. Camaro vs. Challenger [UPDATE]

Update: An earlier version of this story misstated the 2015 Mustang's weight when compared with previous models. Additionally, we have added comments from Chevrolet in the text. The Ford Mustang has blown past the Chevy Camaro as America's best-selling pony car, and in June, it wasn't even close. The 'Stang outsold the Camaro 11,719 to 8,611 cars. The Camaro remained ahead of the Dodge Challenger, which sold 6,845 units. Even though the Camaro did post an 11.5-percent sales improvement in June, the competition is arguably stronger than at anytime since the 1970s muscle-car era. The Mustang's sales leapt a whopping 53.6 percent, while the Challenger saw a gain of 56 percent. Several factors are weighing down Camaro sales, including its lame duck status. Chevy is launching a new generation of the Camaro this year that's more than 200 pounds lighter, offers a new turbo four-cylinder engine option, and has a nicer interior than the outgoing model. Put simply: wait a few months and you can get a better car. It's also unlikely Chevy will jack up the price much, as it's historically kept the Camaro within reach of everyday enthusiasts. While Chevy fans wait in anticipation for their new sports car, Ford and Dodge have downshifted. The new Mustang, which went on sale last year, is faster and more sophisticated than its predecessor. It also offers a 2.3-liter EcoBoost four-cylinder, which Ford has credited for the Mustang's recent uptick and makes up 36 percent of the car's sales, Ford analyst Erich Merkle said. View 17 Photos June's performance allowed the Mustang to widen its sales gap with the Camaro this year. Through the first five months, Ford sold 68,290 Mustangs, a 54.4-percent increased compared with 2014. Chevy sold 42,593 Camaros, an 8.7-percent decrease. The Challenger – long the No. 3 pony car in sales volume – has seen its sales surge 41 percent this year to 37,011 units. Spokesman Monte Doran said Chevy expected that 2015 would be a "relatively soft year" for the Camaro. "Mustang is taking advantage of years' worth of pent-up demand for an independent rear suspension," he said. "When Camaro introduced an IRS, in 2009, it helped make us the best-selling performance car in America.