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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.

GM recalling 521,817 cars in two campaigns

General Motors is issuing two, separate recalls covering a total of 521,817 vehicles worldwide. The larger campaign covers 468,887 units of the 2011-2012 Chevrolet Malibu. Specifically, 437,045 of these are in the US, and the rest are outside the country. In these sedans, a steel cable that connects the seat belt to the vehicle can fatigue and separate. GM knows of 36 claims about the problem but only one minor injury. According to The Detroit News, this happened when a taxi driver hit his head. To fix things, dealers will replace the "outboard lap mounting bracket," which will move the tensioner rearward. They'll also inspect and if necessary replace the steel cable and lap pretensioner. In the second campaign, 52,930 examples the 2015 Chevy Colorado and 2015 GMC Canyon have seat frame attachment hooks that were installed incorrectly during assembly. GM hasn't received any reports of crashes, injuries, or fatalities about this problem. Dealers will inspect the affected trucks and repair as necessary. GM spokesperson Alan Adler told Autoblog that he didn't yet have a specific date when affected owners would receive official mailings about either of these recalls. GM Statement General Motors is recalling 48,309 2015 model year Chevrolet Colorado and GMC Canyon midsize pickup trucks in the U.S. because certain seat frame attachment hooks were not properly attached to the vehicle body during assembly. Dealers will inspect the potentially affected seats for proper installation and repair if necessary. GM knows of no crashes, injuries or fatalities related to this condition. The total vehicle population of the recall is 52,930 including 4,620 vehicles sold in Canada. General Motors is recalling 437,045, 2011-2012 model year Chevrolet Malibus in the U.S. because the flexible steel cable that connects the safety belt to the vehicle can fatigue and separate over time as a result of occupant movement in the seat. Dealers will replace the outboard lap mounting bracket to relocate the tensioner slightly rearward. Dealers will inspect the cable and, if necessary, replace the lap pretensioner. GM knows of 36 claims, no crashes or fatalities and one minor injury reportedly related to the condition. The total vehicle population of the recall is 468,887 including Canada, Mexico and exports.

Weekly Recap: Volvo buys Polestar, makes performance a priority

Volvo is taking its performance business in-house, and the Swedish carmaker announced Tuesday that it bought tuning company Polestar, which has long been known for producing sporty Volvos. The move allows Volvo to ramp up its performance business, and it plans to increase Polestar-branded vehicle sales to 1,000 to 1,500 annually, up from the 750 total projected for this year. The companies have been working together on motorsports projects since 1996. Financial terms of the sale were not released, and Polestar workers will move over to Volvo. Former Polestar owner Christian Dahl will keep control of the Polestar racing team and operate it under a new name. In addition to sales volume, Volvo has ambitious plans for other parts of Polestar, including its aftermarket business. Volvo also said it will use its twin-engine hybrid technology for Polestar models in the future, though specifics and timing were not revealed. Meanwhile, Volvo announced it will offer a run of 265 total Polestars in the United States for the 2016 model year, with S60 and V60s available. "Driving a Volvo Polestar is a special experience. We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars," Volvo CEO Hakan Samuelsson said in a statement. OTHER NEWS & NOTES 2016 Chevy Silverado, GMC Sierra, get nose jobs Automakers tend to refer to light updates as 'facelifts,' and that's exactly what Chevy gave the 2016 Silverado and GMC Sierra. Chevy slightly changed the front end of the truck. Using the one photo released of the new Z71 model as a guide, we can see that the headlights went from a stacked vertical design to single bulbs, and they are set on top of LED running lights. The grille has more body-colored elements instead of shiny metal, and the hood has a new line running down the middle (look really closely). The design theme will be similar across the portfolio, though materials and details will vary, a spokesman said. Some models, like the High Country and LTZ will have more chrome, and the LEDs are only for the upper trims. Chevy also said it will use the eight-speed automatic transmission on more versions of the Silverado, and it updated the MyLink feature to support Android Auto and Apple CarPlay.