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GM struggles to sell small cars, plans to lay off 2,084 employees at two plants

Due to low demand for some of its vehicles, General Motors plans to cut 2,084 jobs at its assembly plants in Lordstown, OH and Lansing, MI. At the same time, the automaker also announced plans to invest approximately $900 million in three of its facilities – the Toledo Transmission Operations in Ohio, Bedford Casting Operations in Indiana, and Lansing Grand River in Michigan - for future products. GM will discontinue the third shift at both the Lansing Grand River plant and the Lordstown, OH plant. The Cadillac ATS, Cadillac CTS, and Chevrolet Camaro are made at the automaker's plant in Michigan, which currently has 2,700 employees. The move to eliminate the third shift affects 810 hourly workers, as well as 29 salaried employees, starting on January 16th. The plant in Lordstown, OH currently has 4,500 employees and makes the Chevrolet Cruze sedan. The plan to discontinue the third shift will affect 43 salaried workers and 1,202 hourly employees and will start on January 23rd. As Fortune points out, sales of the Cruze are down 20 percent through October, while sales of the Cadillac ATS and CTS were down 17 percent through the same period of time. In addition to cutting the third shift at both assembly plants, the automaker plans to invest a total of $900 million between three of its facilities for unnamed future products. GM's Toledo Transmission Operations will receive $667.6 million, the Lansing Grand River Assembly plant will receive $211 million, and the automaker's Bedford Casting Operations will get $37 million. Last year, GM cut roughly 500 jobs from its Orion Township factory due to slow sales of the Chevrolet Sonic and Buick Verano, with surging crossover and SUV sales as the most likely culprit. With GM posting much healthier sales figures for the Chevrolet Equinox and Cadillac XT5 compared to the ATS, CTS, and Cruze, it looks like compact SUVs are to blame for this year's layoffs as well. Related Video: News Source: Fortune, General MotorsImage Credit: REUTERS / Rebecca Cook Hirings/Firings/Layoffs Plants/Manufacturing Cadillac Chevrolet GM Coupe Sedan Lordstown Ohio

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

GM puts 3 million miles on hydrogen fuel cell test fleet

Have General Motors' hydrogen fuel-cell vehicles emitted enough water vapor over the past six-plus years to equal the steam coming out of Old Faithful? Not exactly, but GM has released a few figures related to the Project Driveway initiative it began in 2007. The numbers are impressive, if not quite of the geyser-spouting variety. In all, the General converted 119 Chevrolet Equinox SUVs to run on hydrogen, and those vehicles have just collectively surpassed the 3 million mile mark. And if you were waiting for us to tell you that the distance equals a half-dozen round trips between the earth and the moon, well, there you go. The better news is that the SUVs have combined to save almost 158,000 gallons worth of gas, and some of the vehicles have more than 120,000 miles on them. More than 5,000 drivers have participated in the project. GM reached that landmark about 10 months after it announced that it was working with Honda to accelerate the development of hydrogen fuel-cell powertrain technology. The two companies estimated last summer that it may have something to sell to the public as soon as 2020. For now, you can check out General Motors' press release below. GM Fuel Cell Fleet Tops 3 Million Miles Chevrolet Equinox fuel cell vehicles driven in real world reach milestone DETROIT – General Motors' fleet of fuel cell vehicles recently passed 3 million miles of hydrogen-powered, real-world driving. Some individual vehicles have accumulated more than 120,000 miles. By GM's estimate, using hydrogen to power these vehicles, the fleet has avoided 157,894 gallons of gasoline consumption. This specially equipped fleet of Chevrolet Equinox Fuel Cell vehicles are part of GM's 119-vehicle Project Driveway program, which launched in 2007. Since then, more than 5,000 drivers have provided feedback on the functionality and drivability of fuel cell technology. "Hydrogen fuel cell technology is an important part of GM's advanced propulsion portfolio and we continue to make substantial progress in furthering this technology," said Charlie Freese, executive director of GM's global fuel cell engineering activities. "These vehicles have operated through seven full winters and a wide range of environmental conditions, proving that fuel cells can meet the demands of real-world drivers." Last year, GM announced two fuel cell-related collaborations.