1975 Red With White 1/4 Top Cadillac Eldorado Base Coupe 2-door 8.2l on 2040-cars

Auto blog

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.

Cadillac boss: Don't ask why we have so many sedans

Ugh, crossovers. Car-based, high-riding station wagons, for some reason, sell in absurd numbers and make automakers lots and lots of money. That's why automakers with a strong lineup of CUVs are running strong, while sedan-heavy brands are struggling. Cadillac is all too aware of this fact. While the company is preparing to launch the new CT6 luxury sedan, it's also realizing four sedans, a coupe, a crossover, and a $73,000, old-school, body-on-frame SUV does not a healthy lineup make. Worse, though, as Cadillac President Johan de Nysschen rued during the LA Auto Show, is that the new CT6 is joining a segment already oversaturated. While it's a big, expensive vehicle, it's not much bigger or more expensive than the CTS and XTS sedans. "Please don't ask me why we have three cars in the same segment," de Nysschen said, stopping midway through an interview with Automotive News on the CT6's market placement to make the crack. "That's a whole different subject." As for those CUVs, the new XT5 debuted in LA, and it will eventually be joined by another much-needed CUV in 2018, AN reports. Related Video:

Cool car technology is cool until it breaks

Ah, technology – the beautiful date that impresses all your friends but costs you a fortune to keep happy, up-to-date, and working. Automotive News puts some numbers to the economic toll we're paying to jockey this technological Trojan horse, an analysis it sums up with "Technology is great - until you have to replace it." Back in 2000, for instance, you could replace a Cadillac Escalade taillight lens for $56.08, or replace the entire unit for $220.49. Crack the rear lens on your 2015 Escalade and you have to buy a new unit for $795 - there's no such thing as just replacing a lens anymore. What about headlights? It was $210 for an Escalade headlight in 2000, it's $1,650 for the current unit (pictured). This is nothing we didn't know, these are just hard numbers to demonstrate it. Edmunds recently provided the same with its sledgehammer-bashing of the 2015 Ford F-150, Tesla Model S buyers have been shrieking about repair costs to their electric sedan's all-aluminum bodywork, and used-car sites are full of articles about which expensive-to-repair features to steer clear of if you want to avoid big repair bills. Those expensive bits increase the price of a car - Kelley Blue Book says the average price of a car is now more than $33,000 - and that raises rates for repairs and insurance. This comes in spite of some carmakers that have been collaborating with insurance companies and repair shops at the design stage in order to engineer parts that are easier and less expensive to replace. But the tech can have its cost-saving benefits: a 2011 study by the Highway Loss Data Institute found that Volvos fitted with that company's City Safety feature "filed 27 percent fewer property-damage liability claims" than luxury SUVs without it, and just last month the Insurance Institute for Highway Safety called adaptive headlights one of the top four crash-preventing technologies on cars today (after coming out against them in 2006). So yes, the technology costs a mint when it needs to be fixed - but being able to avoid an accident in the first place might make it worth it. News Source: Automotive News - sub. req.Image Credit: Copyright 2015 AOL Cadillac Car Buying Used Car Buying Auto Repair Insurance Maintenance Safety Technology Luxury replacement parts