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A conversation with GM's Mark Reuss on MPG, aluminum and Corvettes

There was plenty to talk about when General Motors hosted its annual mid-December holiday media reception a few months ago. GM had just decided to pull its global Chevrolet brand out of major European markets, where Chevys have competed directly with GM Europe Opel and Vauxhall vehicles, and the US government had sold its last remaining shares of GM stock. But most important was the company's just-reshuffled leadership. Post-bankruptcy CEO Dan Akerson had announced that he would step aside and that 52-year-old Mary Barra would replace him on January 15. Not only would she be the first woman to lead a major automaker, she would also be GM's first engineer CEO since Bob Stempel in the early 1990s. "I look at 2013 and 2014, as the retooling of General Motors" - Mark Reuss Replacing her as executive VP for global product development (and purchasing and supply chain) would be 49-year-old Mark Reuss, who had served a stellar four years as North American president, and elevated to corporate president (from executive VP and CFO) would be 42-year-old Dan Amman. All three are relatively young auto enthusiasts who are liked and respected inside and outside the company, and their collective talents and experience are highly complementary. I've interviewed Barra and found her smart, personable and knowledgeable, though she carefully walks the corporate line in speaking and answering questions. I met and chatted with Ammann for the first time at that holiday reception, and he made a good first impression. But I've known Reuss for some time as a genuinely good guy and a highly capable and inspiring leader, and I believe he is exactly the right person for the global product responsibility once famously held by the outspoken, oft-controversial Bob Lutz. So I jumped at an opportunity to join a group interview of Reuss (with mostly business reporters) at the Detroit Auto Show in January. It was an interesting session of mostly good questions, which he answered with refreshing candor and humor. "I look at 2013 and 2014, as the retooling of General Motors," Reuss said. "We've taken down almost every plant in North America, converted and turned it this last year, and to do that with award-winning vehicles and pretty flawless launches is key. We have to keep the train rolling on great product, because the rest won't happen without the best product, period." A reporter asked whether GM was pushing big trucks, SUVs and Corvettes again because gas is cheap. "No," Reuss said.

GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.

GM recalling over 243,000 crossovers over possible seat belt defect

2010 Buick Enclave - Click above for high-res image gallery
The summer of 2010's recall hit parade continues unabated today, with General Motors having just announced that it is asking 243,403 owners of its 2009-2010 Lambda crossovers to bring their three-row haulers in for inspection. The culprit? Second-row seat belts in select Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook CUVs have "failed to perform properly in a crash."
According to GM, a second-row seat-side trim piece is to blame, as it can impede the upward rotation of the buckle after the seat is folded flat. As a result, if the buckle makes contact with the seat frame, cosmetic damage can occur, potentially requiring additional force to operate the buckle properly. So far, no great shakes, but in the process of applying that additional force, the occupant may push the buckle cover down to the strap, potentially revealing and depressing the red release button. As a result of this, the belt may not latch, or in certain cases, it may actually appear to be latched when, in fact, it isn't.