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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.

Officially Official: Chevrolet replaces Daewoo name in Korea

Chevrolet Camaro in Korea - Click above for high-resolution image

There once was a time when Daewoo was one of the biggest companies in South Korea. It was larger than both LG and Samsung, and second only to Hyundai. But these days the name is all but gone.

GMC Canyon, Chevy Colorado diesels finally heading to dealers

Customers who have been waiting to receive their diesel-powered Chevrolet Colorados and GMC Canyons should be relived to hear that GM will finally start to ship them out of the Wentzville Assembly Plant. "The highly anticipated 2016 GMC Canyon diesel has begun shipping to dealers," a company spokesperson confirmed to The Detroit News. The trucks originally had a fall launch date, but a final review forced a delay in deliveries. The 2.8-liter four-cylinder diesel in the midsize trucks produces 181 horsepower and 369 pound-feet of torque, and the company touts the engine's low emissions. The Environmental Protection Agency and California Air Resources Board even put the mill through extra scrutiny with a real world test in the wake of VW's diesel scandal, and the Duramax passed with no problems. At that time, a Chevy spokesperson told Autoblog that the models' launch was on track. The Duramax engine adds $3,730 to the price of a comparable V6 model, but they're the most fuel-efficient pickups on the market. The EPA estimates the twins at 31 miles per gallon highway, 22 mpg city, and 25 mpg combined in two-wheel drive form and 29/20/23 with four-wheel drive. Buyers likely can't wait to finally experience these pickups after reading a heap of positive reviews. The Colorado diesel recently earned Motor Trend's Truck of the Year award. We also came away impressed with it during our First Drive and liked the Canyon during our Quick Spin. Related Video: