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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.

Black Friday could power record November sales

Black Friday allows some shoppers to line up in the wee hours for doorbuster deals on laptops and TVs, but the day after Thanksgiving could mean huge profits for automakers this year, too. Multiple industry analysts predict record growth for the industry for November, and the upcoming incentives could help those numbers. TrueCar predicts that Black Friday incentives could provide a major boost, and it estimates a November sales jump of 3.9 percent from last year to a record for the month at over 1.35 million vehicles. As examples of potential deals, Chevrolet, Buick, and GMC plan to offer up to 20 percent off some models, and FCA US has no-interest financing for up to 75 months from its brands. "Consumers are excited about Black Friday promotions and these month-long events appear to be resonating with car buyers." Eric Lyman, TrueCar's vice president of industry insights, said in the report. Black Friday only recently became a big day for auto sales, according to an analysis from Edmunds. Last year, Thanksgiving weekend posted double the sales as any other weekend in the month. The company predicts a sales volume of over 1.33 million vehicles for November. If that happens, it would be the beat the previous record of 1.32 million sales for the same month in 2001. Some forecasts temper the gains for November but only slightly. Kelley Blue Book predicts flat year-over-year sales at 1.3 million vehicles, but that's largely because there are two fewer sales days in 2015 versus in 2014. "Black Friday deals on vehicles have grown in popularity in recent years, and should be a big contributor to this month's sales results," said analyst Tim Fleming in the study. The combined research from J.D. Power and LMC Automotive have the lowest November prediction among this group at just over 1.279 million sales for the month versus 1.299 million in 2014. However, once the researchers adjust the figures for the two fewer selling days, 2015 could actually be seven percent higher than last year. TrueCar Finds New Auto Sales in November to Reach Monthly Record Black Friday promotions bolster sales gains; industrywide incentives up 6% from last year November 24, 2015 12:11 PM Eastern Standard Time SANTA MONICA, Calif.--(BUSINESS WIRE)--TrueCar, Inc. (NASDAQ: TRUE) projects total new vehicle sales, including fleet deliveries, will reach 1,352,500 units in November, a 3.9 percent increase from a year ago and the highest ever for the month.

Buick Velite Plug-In Hybrid Concept debuts to little fanfare

Buick pulled the covers off its latest Velite Concept at the Auto Guangzhou 2016 show in China. We say latest because this is actually the second time Buick has used the Velite name for a concept, the previous having been shown at the 2004 New York Auto Show. The first Velite concept was a two-door convertible; the second Velite is a four-door crossover. Enough about the name, what about the concept? Well, it's very highly stylized, and we don't really mean that in a good way. There's nothing about the Velite that screams Buick, except for its badges, of course. At the front is a compressed version of Buick's traditional waterfall-like fascia. It's flanked by slit-like LED lighting elements. The rest of the face looks to our eyes like it draws inspiration from the latest Toyota Prius. There isn't a single flat element to the Velite Concept's bodysides, in a way that resembles recent concepts from Infiniti. The last bit of styling flourish are deep recesses just ahead of the rear wheels, a look that is reminiscent of BMW's i-series of vehicles. There aren't any images showing the Velite's hind quarters, but from what we can see, that also has a QX-ish look about it. There are no shots yet of the Velite's interior, but Buick says it's "elegant" and "includes recycled materials." We wish we could see what it looks like, because the automaker says it "[points] to design trends for upcoming new energy vehicles." So, the Buick Velite Concept is a nondescript mashup of design elements that we've already seen. Under the skin, however, things are more interesting. It's a plug-in hybrid with a modular lithium ion battery. That doesn't tell us much – it could be a variant of the Chevy Volt, or it could be a different system altogether. We look forward to finding out. In the meantime, have a look at the high-res image gallery up above. Oh, and if you're wondering, the word velite traces its roots back to a lightly armored military division in ancient Rome. Related Video: