1989 Gmc R3500 Sierra Classic Crew Cab Toter/box Truck on 2040-cars

Auto blog

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.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

2018 GMC Sierra 2500HD All Mountain concept: Nothing stops it in its tracks

Winter may not be the best time for sports cars, but snow and ice can still provide a ton of fun in the right vehicle. The Porsche Macan GTS I had back in January was a riot in the snow, and it was wearing nothing more than a good set of winter tires. What you really need to conquer the frozen north is tracks. These replace wheels with the same sort of equipment that helps tanks and snowmobiles roll over damn near everything in their paths. That's what makes the 2018 GMC Sierra 2500HD All Mountain concept so awesome. That and the 910 pound-feet of torque from the 6.6-liter Duramax turbo diesel V8. The All Mountain concept is set to debut this week in Veil, Colorado, home to ski slopes, log cabins and nearly year-round snow pack. The truck is based off a standard GMC Sierra 2500HD. The turbo-diesel V8 makes 445 horsepower in addition to the mountain of torque. Power is sent to all four corners through an Allison 1000 six-speed automatic. The new treads come courtesy of Mattracks. The 150 Series tracks aren't cheap — well into five figures with installation — but they give you a nice 16-inch surface at each corner. Other changes and add-ons include graphics on the bodywork, a RIGID E-Series 30-inch light bar, LEDs on the wheel well and underbody, Thule snowboard racks, a roll-up tonneau cover and a new speaker system from Kicker. The truck will stay on display in Veil all winter, though a similar concept will be making its way to various auto shows, starting with Los Angeles next week. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery GMC Sierra All Mountain Concept: LA 2017 View 9 Photos Related Gallery 2018 GMC Sierra 2500HD All Mountain concept View 10 Photos News Source: GMCImage Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com GMC Truck Off-Road Vehicles