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General Motors posts record earnings, but global sales fall

General Motors started the year with record success. The automaker's $2.7 billion in adjusted earnings before interest and taxes was its highest ever in in the first quarter of 2016, up from $2.1 billion in from the same time period a year earlier. Net income grew to $1.95 billion, which was more than double the $953 million in the same period last year. The company's figures also beat analysts' predictions, according to the Detroit Free Press. Despite the financial growth, global sales actually decreased by 2.5 percent to 2.36 million vehicles. "We're growing where it counts, gaining retail share in the US, outpacing the industry in Europe and capitalizing on robust growth in SUV and luxury segments in China," CEO Mary Barra said in the company's financial announcement. GM did well in North America with an adjusted EBIT of $2.3 billion, up from $2.2 billion last year. Sales in the region also grew 1.2 percent to 800,000 vehicles. According to The Detroit Free Press, the company has been especially successful at selling more expensive models in the US. The company's average vehicle was $34,600 in Q1, about $3,000 more than the industry average. Elsewhere in the world, GM also showed improvement. Europe practically broke even after losing about $200 million last year, and Opel and Vauxhall sales grew 8.4 percent to more than 300,000 vehicles for the quarter. South America only lost $100 million, which was half as much as Q1 2015's $200 million loss. China remained flat at $500 million of income. Cadillac volume jumped 6.1 percent there, and Buick's deliveries increased 22 percent, thanks to the Envision crossover's success. GM Reports First-Quarter Net Income of $2.0 Billion 2016-04-21 EPS diluted of $1.24; First-quarter record EPS diluted-adjusted of $1.26 First-quarter record EBIT-adjusted of $2.7 billion GM Europe posts break-even performance DETROIT – General Motors Co. (NYSE: GM) today announced first-quarter net income to common stockholders of $2.0 billion or $1.24 per diluted share, compared to $0.9 billion or $0.56 per diluted share a year ago. Earnings per share diluted-adjusted for special items was a first-quarter record at $1.26, up 47 percent compared to the first quarter of 2015. The company set first-quarter records for earnings and margin, with earnings before interest and tax (EBIT) adjusted of $2.7 billion and EBIT-adjusted margin of 7.1 percent.

Buick Cascada will start at $33,990

The Buick Cascada goes on sale early next year, bringing open-air motoring to the brand in the US for the first time in 25 years, and you'll need $33,990 to buy the standard model. Notice there's no asterisk after that price in the headline, because $33,990 includes the destination charge. Buick compares this convertible with the $37,525 Audi A3 droptop, noting that the 200-horsepower Cascada has 30 more hp, navigation and heated front seats as standard, eight-way power seats instead of four-way, 20-inch wheels instead of 17-inchers, and a heated steering wheel. The Cascada in Premium trim will run $36,990 and add forward collision alert and lane departure warning, auto headlights, park assist front and back, rain-sensing wipers, and two air deflectors. Quite a few of you have commented that it would be great if Buick could price the Cascada where the defunct Chrysler 200 Convertible used to live, and it's in the neighborhood. The 2014 200 S convertible was the top of the line in the model's last year, came with a 283-hp, 3.6-liter V6, and started at $33,445 before destination. It lacked the features, refinement, and looks of the Cascada, and that thirsty V6 got you gas mileage of 14 highway, 21 city. The soon-to-depart Volkswagen Eos, which also comes up frequently in Comments, starts at $32,860 after destination. If Buick kept the suspension tuning engaging, this could be really good. There's a press release below with more info. Your browser does not support iframes. Buick Cascada Priced at $33,990 Well-equipped convertible offers high levels of standard content, technology DETROIT, 2015-09-23 – The top-down driving experience of the 2016 Cascada – Buick's first convertible offered in the United States in 25 years – is priced at $33,990. When it goes on sale early next year, the Cascada will offer more standard content, a more powerful standard engine and a lower starting price than the Audi A3 Cabriolet. "Cascada expands Buick's lineup with a uniquely fun and personal driving experience," said Duncan Aldred, vice president of Buick. "With a lower price than key competitors, it also promises to shake up the segment – and look good doing it." The 2016 Cascada – designed from the ground up as a convertible – comes well-equipped in a 2+2 configuration, with room for four adults.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits