Auto blog

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.

Surprise! GM putting aluminum in next-gen pickups

Last month, General Motors launched a series of ads touting the benefits of steel over aluminum – specifically, with regard to the Chevy Silverado versus the Ford F-150. (Kind of. We're not sure what a grizzly bear has to do with anything.) We took issue with the ads, with editor in chief Mike Austin saying they "reek of insecurity, and distract from the Silverado's strengths that could be used for positive advertising." But what bothers us more, is that yet another report surfaced claiming anti-aluminum GM will indeed use the weight-saving material in its next-generation fullsize trucks. On Tuesday, GM announced a $877-million investment for its truck plant in Flint, MI. But Reuters says that huge overhaul is because the trucks will use "substantially different equipment than the tools GM uses today." The report specifically states, "People familiar with the company's plans say GM's next-generation pickups and SUVs will make use of various materials, including aluminum and lightweight steel, to shed weight and gain fuel efficiency to meet tougher federal standards." The Silverado already uses a few aluminum components in the engine and hood, and if more widespread use will help GM build its best fullsize trucks ever, then that's great. Honestly, we have no reason to doubt that aluminum will be used in the next Silverado and GMC Sierra. We just hope GM remembers that nothing is ever truly deleted from the bowels of the Internet when it launches the subsequent "look how great aluminum is!" campaign. Related Video: News Source: Reuters Green Plants/Manufacturing Chevrolet GM GMC Truck aluminum steel

GMC and EarthCruiser to collaborate on Hummer EV Pickup overlander project

GMC just announced a collaboration with overlanding vehicle builder EarthCruiser, and the end result is going to provide us with a co-developed Hummer EV Pickup. The photo you’re looking at above is the first teaser for whatÂ’s to come of the partnership. The Hummer team will be working with EarthCruiserÂ’s research and design division to develop an overland upfit solution for EVs that it says will initially be integrated into the Hummer EV Pickup. In case you werenÂ’t familiar with EarthCruiser, theyÂ’re the people that have made utterly wild overlanding vehicles like the Terranova, FX and EXP. Needless to say, EarthCruiser makes some pretty rad stuff, and none of it is cheap. GMC says this collaboration will look to use EarthCruiserÂ’s expertise gained from developing its vehicles to create an overlanding solution for the Hummer. We should expect to see EarthCruiserÂ’s engineering technologies integrated into the vehicle, which will allow the Hummer to go even further off-road and provide the ability for owners to live with their trucks in the wilderness.  The one snag with overlanding in EVs is the typically long journeys away from civilization. As an example, the EarthCruiser XP and EXP feature 60-gallon fuel tanks to ensure you can get to where you need to go and power the living situation for a long time once youÂ’re there. WeÂ’ll be interested to hear what GMC and EarthCruiser have to say about the challenges presented by overlanding in an EV. Already visible in the teaser image is what looks like a solar panel-filled roof and rear side pods for supplies. The concept truck will be presented in late summer 2023, and while no date for a production vehicle was provided, itÂ’s likely that the final truck will come soon after. Related video: