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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.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.

Cadillac recalls 120k examples of ATS for fire risk

Cadillac is recalling a total of 119,339 units (96,145 in the US alone) of the 2013-2016 ATS sedan, because the coil antenna module that powers the rear defogger can overheat. The problem has been linked to four fires, but there have been no injuries, fatalities, or crashes, according to the automaker. During manufacturing, the antenna might have been produced with "critically weak terminal connectivity." If being cycled on and off often or used continuously, these faulty examples can overheat, leading to a fire in the driver's side rear pillar. According to the company, "less than 1 percent of the recalled vehicles are expected to have the condition." According to the National Highway Traffic Safety Administration (in a PDF), the fix is a reflash for the ATS' Electronic Climate Control module that automatically turns on the rear defogger when the engine starts. In addition, 2013 models keep the system on continuously at low temperatures at highway speeds and this is also being disabled in the update. The changes are meant to cycle the coil less often, but owners can still turn it on manually. Related Video: GM Statement: General Motors is recalling approximately 96,145 2013-16 model year ATS sedans in the U.S. Some of these vehicles may have been manufactured with critically weak terminal connectivity in the coil antenna module, which powers the rear defogger system. If the module has the condition and is subjected to excessive cycling or continuous operation, it may overheat and a fire may develop inside the rear pillar on the driver's side of the vehicle. Less than 1 percent of the recalled vehicles are expected to have the condition. GM is aware of four fires but no injuries, fatalities or crashes. Including Canada, Mexico and exports, the total population of the recall is approximately 119,339. RECALL Subject : Rear Defogger Coil Antenna Module may Overheat Report Receipt Date: SEP 03, 2015 NHTSA Campaign Number: 15V558000 Component(s): VISIBILITY Potential Number of Units Affected: 96,145 All Products Associated with this Recall Vehicle Make Model Model Year(s) CADILLAC ATS 2013-2016 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2013-2016 Cadillac ATS sedan vehicles manufactured April 23, 2012, to September 2, 2015. In the affected vehicles, the coil antenna module that powers the rear defogger system may generate excessive heat due to excessive cycling or continuous operation.