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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.

These are the five most ridiculous attacks on the Chevy Volt [w/videos]

It's been a long, strange trip for the Chevy Volt from the time when the now-odd-looking concept version (above) was introduced at the 2007 Detroit Auto Show to today. And now, General Motors announced that the second-generation Chevy Volt will make an appearance at the 2015 Detroit show in January. This debut represents a victory for GM with what has easily become the most politicized car of the 21st Century. There are plenty of reasons for someone to criticize the Volt, but what's amazing is just how much anti-Volt energy has been spent not on things like the styling or how the EREV setup is not as efficient as a pure-EV powertrain. As we wait for more official information on the new Volt, we thought it would be fun to go back and look at some of the most wildly incorrect reporting and strangest attacks on the Volt from the archives. There is so much good stuff out there, it was hard to pare the list down, but these are our five favorites. Amazingly, they're not all clips from Fox News. Check 'em out below. 5. GM Is Going To Stop Making The Chevy Volt In The US Do you remember when GM was about to move Volt production to China? Well, yeah, this was reported back in early 2012 when a GM executive mentioned that the automaker would get benefits of building the Volt in the places where it sells them. This was spun into a story of GM taking Obama bailout money and then running to China. The Blaze was not happy: "Given the fact that Federal government helped itself to millions and millions of taxpayer dollars under the pretense that it was going to combat high unemployment by creating 'green jobs,' it would seem that moving research and development (and possibly manufacturing) overseas is slightly, well, counterproductive." Well, of course, that never happened. There's no way to say that GM will never build a version of the Volt in China, but the news we hear rumors of these days is that GM is going to move production of more Volt parts (specifically, the motors) to Michigan from overseas. 4. The Chevy Volt Is A Fire Trap There has never been a Volt that just spontaneously lit up while driving down the road. Yes, there were Volts that caught on fire. Yes, that's a scary thing. But there has never been a Volt that just spontaneously lit up while driving down the road. These were crashed test vehicles with destroyed batteries and plugged-in vehicles that were not the cause.

What we know, and think we know, about the 2016 Chevy Volt

With the next-gen Chevy Volt due to make an appearance at the Detroit Auto Show early next year, bits and pieces about the new car are making their way into the press. Perhaps most importantly, the new Volt is going to have better "fuel economy and efficiency," according to GM executive vice president Mark Reuss. The current Volt gets 98 MPGe and 37 miles per gallon on premium fuel. It also has a 38-mile electric-only range. We don't know how GM will improve the efficiency or to what degree, but the logical options include making the car lighter, giving it better aerodynamics and/or improving the powertrain. To that end, one of the big things we don't know for sure includes information on the new gas-powered engine. Forbes says it will be a downsized 1.0-liter, three-cylinder mill instead of the 1.4-liter, four-cylinder used in the current model, which could certainly help the car be more efficient. The new Volt is also going to have more technology, which shouldn't surprise anyone. GM is now openly talking about how it will change the way it markets the Volt, shifting away from the mass-market mentality to focus on the regions where the car is already popular. "There's a Northeast and West Coast market for Volt, and there's nothing wrong with that," Chevy chief marketing officer Tim Mahoney told Forbes. There are rumors that the new Volt will have seating for five by adding a seat in the back. This is something a lot of current Volt owners would love, but we've heard nothing official hinting that this would be the case. We expect the battery to be the new 17.1-kWh version, or maybe even have a capacity increase, so GM would have to seriously repackage the pack to eliminate the ridge that runs from between the front seats and then back to the rear two seats. If you've heard anything official, do let us know.