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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.

GMC teases rugged 2021 Canyon AT4 pickup

GMC promised every model in its lineup would get the AT4 treatment by 2021. Having introduced AT4 versions of the Sierra, Acadia and Sierra HD already, that leaves the Canyon, Terrain and Yukon waiting their turn for the procedure. During a press even for the Sierra HD in Jackson Hole, Wyoming, GMC teased Canyon AT4 as next in line to receive upgraded off-road chops. The automaker had a camo'ed prototype Canyon AT4 in a trailer hooked up to a Sierra HD. When Sierra occupants pulled up the feed from the trailer-mounted camera on the infotainment screen, said occupants got a view of the masked midsize pickup between two walls reading, "The first ever Canyon AT4" and "Coming early 2020." The main mysteries are how extensive the pickup's AT4 transformation will be, and when it will go on sale. The AT4 kit changes depending on model. The Sierra AT4 upgraded performance and looks, with features like a two-speed transfer case, locking rear differential, a two-inch lift and Rancho monotube shock absorbers, skid plating, black-chrome grille and body-colored grill surround. The 2020 Acadia AT4 is mostly about looks, pairing standard all-wheel drive with black trim and wheels, and all-terrain tires. The Canyon's expected to weigh in on the Sierra end of the overhaul, and slide into the lineup between the SLT and top-tier Denali trims. The mods will put it beyond the current All Terrain trim being phased out across the lineup, but leave space between the Canyon AT4 and its Chevrolet sibling, the Colorado ZR2. GMC VP Duncan Aldred said, "They’re going to have different capability levels. The ZR2 is extreme capability. AT4 isnÂ’t positioned as extremeÂ… not intended to rival the ZR2." And the Colorado gets the even chunkier Bison version on top of that. The Canyon AT4 is predicted to join the lineup for the 2021 model year, so although it's "coming early 2020," it might not go on sale until much later in the year. GM's midsized pickup twins will be endowed with changes so mild that neither brand will classify the work with the term "midcycle enhancement." Figure a refining around the grille and lights and a few minor fillips otherwise. Next-generation models of the Canyon and Colorado aren't due until 2023, and there's apparently debate inside GM about an interior refresh for both trucks before then. The Terrain should mirror changes to the Acadia, and it would be a pleasant surprise to see the all-new Yukon also due in early 2020 get serious off-road teeth.

Netflix to feature electric cars from GM and others in programming

LOS ANGELES — Netflix has unveiled a new star for some of its upcoming programming: electric vehicles from General Motors and other automakers. The streaming service announced an agreement on Thursday to feature vehicles including the Chevrolet Bolt, the electric GMC Hummer pickup and the Cadillac Lyriq in TV series and films "where relevant." The companies will highlight the partnership in a commercial featuring Will Ferrell that will air during the Feb. 12 Super Bowl. Netflix and GM called the agreement "part of a commitment to a more sustainable future." Financial terms were not disclosed. Netflix said it will help creators "better understand how EVs can complement and enhance their stories." Shows that will feature GM's electric vehicles include "Love is Blind," "Queer Eye" and "Unstable." Netflix productions also will include electric vehicles made by other automakers, the company said.   Marketing/Advertising TV/Movies Chevrolet GM GMC Hummer