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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.

GM to sell rebranded Peugeot vans in US?

According to a report by France's La Tribune cited by Reuters, General Motors and Peugeot are discussing the possibility of selling PSA Peugeot-Citroën commercial vans in the US through The General's dealership network. While specific models and what brand they may sell under stateside are not immediately clear, the move isn't entirely out of the blue, particularly since GM owns seven percent of the French automaker.
Peugeot and GM already have a joint-venture agreement to ease costs associated with vehicle development and procuring parts, and while the progress of the arrangement has been inhibited some by Europe's difficult economy, the two automakers are looking to expand the relationship. With sales in the dumpster, Peugeot's long-term prospects have looked particularly shaky as of late, and GM could use a modern commercial van lineup to better compete with North America's suddenly modern and Euro-fied competition. Mercedes-Benz kicked off the high-roof trend with its Sprinter, and for 2014, Ford is following with its Transit van (joining its smaller Transit Connect sibling), while Chrysler is leveraging its relationship with Fiat to rebrand the Ducato range of vans as Ram Promaster models.
Peugeot already has a full line of commercial van solutions in its stable, from its compact Partner and Bipper models to the larger Expert and Boxer models, which are available in a variety of cargo and people-carrying configurations.

GMC Canyon will debut in Detroit

With the debut of the Chevrolet Colorado at November's Los Angeles Auto Show, perhaps it was only a matter of time before we saw the small truck's GMC counterpart. That time will be January, as we've received official confirmation that the GMC Canyon will be revived at next month's North American International Auto Show in Detroit.
The news came in the latest issue of the Detroit Auto Show's newsletter, NAIAS Connect. The article hasn't been posted online quite yet, but it details the Canyon as one of the world production debuts slated for the show.
While we've heard rumors that the Canyon would arrive in Detroit, this is our first concrete bit of evidence. As we've detailed before, we expect the Canyon to be stylistically quite different than the Colorado, though the underpinnings will be shared. The teaser image we have above is currently our only look at the new truck. We'll hopefully have more details in the next few weeks as the GMC Canyon draws closer to its official debut.