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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.

Before Chevrolet's Redline, there was the Saturn Red Line

While Chevy rolls out Redline special editions across more of the lineup at this year's Chicago Auto Show, we've been eating some 'member berries and started thinking about the last time GM used the term. Back in 2004, Saturn rolled out Red Line (two words) editions of the Ion and Vue. The lineup was joined by the Sky Red Line in 2007, and the second-generation Vue kept the tradition going in 2008. This was in the heady days of the mid-2000s, before the financial crisis and GM's bankruptcy reorganization that saw the end of Saturn. The press release headline for the 2008 Sky is now cringe-worthy: "Hot-selling Sky helps drive Saturn product renaissance." Performance lineups were the hot new thing, as automakers attempted to cash in on the tuner trend popularized by The Fast and the Furious. Chevy had SS models, Pontiac had GXP, and Saturn had Red Line. Across the Detroit Metro area, Dodge had a slew of SRT models, and Ford's Special Vehicle Team brought us the SVT Lightning pickup, the SVT Focus, and a smattering of hopped-up Mustangs. The performance cred of Red Line models varied from car to car. The Ion Red Line shared the same engine as the original Chevy Cobalt SS, a 205-horsepower supercharged 2.0-liter four-cylinder, 65 hp more than stock. Car and Driver tested one with a 0-to-60-mph time of 6.1 seconds and said the Ion "tears down the wall that has separated enthusiasts from the Saturn brand for so long." The Vue Red Line, meanwhile, came with the same optional Honda-sourced 3.5-liter V6 you could get in the regular Vue, and added a stiffer, lower suspension, bigger wheels with more aggressive rubber, and recalibrated steering assist. When the Vue was redesigned for the 2008 model year, the Vue Red Line was a similar proposition. The engine was now from GM, and up 7 horsepower to 257, but you could get it in both Red Line and XE trim. Aside from the tire and suspension upgrades, Red Line models now came with a unique front fascia and rear exhaust cutouts. The most exciting Red Line, of course, was the high-performance version of the Sky roadster, which shared underpinnings with its Pontiac Solstice twin. This model came with GM's hot 2.0-liter Ecotec Turbo, good for 260 horsepower. The extra power was crucial in covering up the Sky's unfortunate manual gearbox ratios, which left the non-turbo model aching for torque in lower gears. As we all know, Saturn was taken by the grim reaper in 2009 after an attempt to sell the brand to the Penske Group.

GM admits goal of 500,000 EVs by 2017 won't be met

After a little over four years of Chevy Volt sales, General Motors has a better handle on how many people it expects will buy cars with plugs. And it's less than the company thought back in 2012, when then-senior vice president of global product development, Mary Barra, said that GM expected to sell 500,000 "vehicles with electrification" by 2017. In a sustainability report released this week, GM says that half-million vehicle target will not be met but that it still, "believes the future is electric." In the report, GM says that, "For our commitment to electrification, our forecasted outlook currently projects us, along with the broader automotive industry, falling short of expectations for 2017. ... We continue to aspire to our stated goal." GM's electric lineup includes the Volt, the recently popular Spark EV, the slow-selling Cadillac ELR and upcoming Malibu Hybrid, CT6 plug-in hybrid and eAssist technology in the Buick LaCrosse and Regal. GM says it has 180,834 electrified vehicles on the road in the US today. In 2013, it had 153,034; 95,578 in 2012, and 39,843 in 2011. The company's next big plug-in vehicle will be the second-gen Chevy Volt, which is coming to market later this year, followed by the 200-mile Bolt EV coming, we think, in 2017. GM Employees on Mission to Transform Transportation Sustainability report outlines vehicle and manufacturing progress; sets new targets 2015-05-07 DETROIT – General Motors' just-released sustainability report chronicles efforts by the company's 216,000 employees to live out GM's newly defined purpose and values by earning customer loyalty, applying meaningful technology advances and improving the communities where it does business. These actions – led by CEO Mary Barra – further drive sustainability into the company's culture through building safer and smarter vehicles with less environmental impact. "GM will take a leading role in the auto industry's transformation as it undergoes an unprecedented period of change," said Bob Ferguson, senior vice president, GM Global Public Policy. "From GM's labs to its assembly lines, our people are driving the world to a better place through improved mobility." The company believes the future is electric, with billions of investment to support an all-in-house approach to the development and manufacturing of electrified vehicles. It now counts 180,834 on the road in the U.S – up from 153,034 in 2013.