2011 Gmc Sierra 2500 Denali Diesel Loaded on 2040-cars

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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.

2017 GMC Acadia coming to Detroit Auto Show

Well, it's about time. If there's one group of vehicles that are in serious need of an update, it's the GM Lambda crossovers. You know, the Chevy Traverse, GMC Acadia, and Buick Enclave. They're super old. Good thing, then, that the brand-new Acadia is coming to the Detroit Auto Show next week, as evidenced by this teaser image found on the company's Facebook page. There's not much to see here, except for an LED taillamp signature on what appears to be a much cleaner rear end. We expect the three-row CUV to feature all of the latest GM tech, including a robust infotainment system with Android Auto and Apple CarPlay. V6 power and optional all-wheel drive makes sense here, too, though we won't rule out some kind of four-cylinder option. When GM launched the Lambda crossovers, the Acadia arrived first in late 2006, alongside the now-discontinued (but still very much present in the current Acadia) Saturn Outlook. The Buick Enclave came next, and the Chevy Traverse arrived after that. It's unclear if GM will stick with this rollout plan, of course, but one thing's for sure: all-new versions of these CUVs cannot come soon enough. Related Video:

GM faces possible class action lawsuit over 8-speed transmission

General Motors has been hit with a class-action lawsuit from owners who allege the eight-speed automatic transmission found in several rear-wheel-drive Chevrolet, Cadillac and GMC models between the 2015 and 2019 model years has a defect that causes the vehicles to hesitate and jerk when accelerating or slowing down. The lawsuit was posted to ClassAction.org and spotted by GM Authority. Problems with GM's Hydra-Matic 8L90 and 8L45 transmissions have been well-documented on Internet forums and via complaints filed with the National Highway Traffic Safety Administration, with many reporting damage to their vehicles. The lawsuit was first filed in December in U.S. District Court for the Southern District of Florida but appears to have been transferred recently to New York. Autoblog sought comment from Theodore Leopold, the lead attorney for the plaintiffs. "These transmissions have a common defect," the complaint reads. "Drivers attempting to accelerate or decelerate their cars feel a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." The problem also occurs when the vehicles accelerate in a single gear, without shifting, the plaintiffs allege. "Drivers have reported that the shift is sometimes so violent, they feel as though they have been hit by another vehicle." The problem is believed to center on the transmission, torque converter or both. The complaint says it causes undue friction, causing hydraulic systems and gears to function improperly and sometimes leaves metal shavings throughout the transmission, leading to costly repairs and replacement of parts or the entire transmission. It says GM has known about the problems since shortly after it introduced the transmissions, and has issued 13 technical service bulletins, none of which have resolved the problem. GM declined to comment on the lawsuit. The plaintiffs say GM should have warned consumers about the issues and covered repairs under each vehicle's three-year/36,000-mile bumper-to-bumper warranty. They're seeking statewide classes in at least six states: California, Florida, Illinois, New York, Oklahoma and Texas.