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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.

Junkyard Gem: 1978 Buick Electra 225

The Buick Electra was a big, plush, dignified land yacht for the 1959 through 1976 model years, but certain events in the middle 1970s, coupled with increasing sales of imported cars, convinced The General that a weight-loss program would help Electra sales. For the 1977 model year, the big Buick became 11 inches shorter and shed close to 900 pounds. Sales took off. Most of these cars are gone now, but I was able to find this faded '78 in a San Francisco Bay Area self-service yard a few weeks back. Just to be clear, the Buick Electra in the iconic Sir Mix-a-Lot video, My Hooptie, is a 1969 model. That car was much bigger and more powerful than today's Junkyard Gem. This car has the optional Oldsmobile 403-cubic-inch V8 engine under the hood, which was good for 185 horsepower and 320 pound-feet of torque. This is the same type of engine that was badged as a 6.6-liter plant in the Pontiac Firebird Trans Am of Smokey and the Bandit fame, and GM's mix-and-match games with engines from different divisions went on to cause great disgruntlement among buyers who wanted a Buick engine in a Buick. The silver-faced gauges were pretty cool-looking by late-1970s standards. The interior is standard-issue Detroit luxury car for the era: much vinyl, many molded-in fake stitches, plenty of not-trying-very-hard-to-look-real "wood." These cars rode very comfortably and looked sharp, so who cared if the interiors were plasticky? According to Glenn Ford, the '78 Electra carried on an ancient tradition of Buick luxury. Related Video:

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.