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GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.

GM planning to put its fullsize pickups on a big diet, too

General Motors is just coming off a complete redesign of the Chevrolet Silverado and GMC Sierra for 2014, but in the US fullsize truck market, there is no rest for the weary. According to Reuters, plans are already unfurling for both trucks to drop pounds from their curb weight over the next few years, but this will unlikely be able to keep pace with the 700-pound diet targeted for the next-generation Ford F-150, a truck expected to debut late next year.
The biggest weight reduction for these trucks might not be available until the next full redesign, which will likely happen around 2019, but the article says that smaller updates could shave pounds in the meantime. Two examples given include an "aluminum-intensive" version of the Silverado that could shed 250 pounds and debut around the same time as the lighter-weight, aluminum-bodied 2015 Ford, and there is also talk of reducing weight for driveline components such as axles and driveshafts. These changes are all part of an attempt to meet strict new fuel economy standards coming in 2017, targets which will get even tougher in 2025.

2019 GMC Sierra AT4 First Drive Review | Off-road overkill

The road ahead is dirt with a rut here and a rock there. Brush keeps a respectable distance on the right side, the edge on the left gradually falls away into the valley below. The grade is nothing your treadmill couldn't duplicate and traction is pretty good. Honestly, a couple in their Subaru Crosstrek could pop up here for a picnic. The 2019 GMC Sierra AT4 we're driving is therefore complete overkill. But at least it looks the part as it trudges up this uncharacteristically verdant mountain with San Diego in the distance to the north and Mexico to the south. Its special, dechromed AT4 grille has a purposeful appearance, but tastefully lacks the show-off machismo of Ford and Ram's off-roading models. The red tow hooks are a nice touch and the dark-accented 20-inch wheels wrapped in all-terrain rubber are just the right size beneath a suspension that is raised an extra 2 inches from every other Sierra. That would be one of the key elements that differentiates the AT4 as the Sierra's off-roading model – GMC's answer to the Chevy Silverado's Trail Boss trims. In fact, their mechanical enhancements are identical. Besides the 2-inch lift, the suspension features off-road-tuned Rancho monotube shocks. There's also a locking rear differential, a two-speed transfer case, skid plates and those tow hooks. The 5.3-liter V8 with Dynamic Fuel Management is similarly standard, but unlike the Silverado Trail Boss, the Sierra AT4 offers the 6.2-liter V8 good for 420 horsepower and 460 pound-feet of torque as a roughly $2,500 option. That's the engine we have and it delivers the expected punch, complete with a satisfyingly snarling exhaust note. However, as observed in back-to-back drives with these two available engines during the Silverado launch, the 6.2 certainly isn't necessary. The 5.3-liter is seriously capable and the bigger engine is largely for those who want to have the biggest number possible emblazoned on the fender. It's overkill, which in this particular environment, is fitting. Besides the available engine upgrade, the AT4 also goes beyond its Trail Boss counterpart by dipping into the Sierra Denali's tool box. Its MultiPro tailgate is standard equipment, allowing for six different configurations, the most notable of which include a means of more easily reaching into the bed and a drop-down step that eases entry into the bed. GMC's considerable touting of that last element is rife with hypocrisy given GM advertisements that mocked Ford's similar feature.