Trucks give GM earnings increase in second quarter

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Page 1 of 4 123 ... LastLast
Results 1 to 15 of 52

Thread: Trucks give GM earnings increase in second quarter

  1. #1
    6.0 Liter L76 V8
    Join Date
    Jun 2016
    Posts
    2,092
    Thanks
    573
    Thanked 1,038 Times in 643 Posts

    Trucks give GM earnings increase in second quarter

    https://www.detroitnews.com/story/bu...er/1878279001/

    General Motors Co. earned $2.4 billion in the second quarter of the year, up 1.6% from the same period a year ago.

    The results were driven by strong truck sales in North America as the automaker battles Ford Motor Co. and Fiat Chrysler Automobiles in the lucrative pickup market. GM earned $3 billion in North America due in large part to those truck sales, which drove its profit margin to 10.7%.

    "You are really starting to see the earnings potential of our truck franchise," Chief Financial Officer Dhivya Suryadevara said Thursday.

    The second-quarter results came on revenue of $36.1 billion that declined by about 2% year-over-year. The roughly 11% increase in profits before taxes in North America came as the automaker lost $48 million from GM international operations. GM reported adjusted earnings per share of $1.64, which beat analyst expectations.

    The automaker saved $700 million during the second quarter through its restructuring efforts and $1.1 billion for the first half of the year. GM has said it will save up to $2.5 billion this year through restructuring, which includes cutting 15% of its salaried workforce and ceasing production of cars like the Lordstown, Ohio-built Chevrolet Cruze. In addition to the Lordstown Assembly Plant, the Warren Transmission Plant is also on GM's list of four "unallocated" plants in the U.S. The Warren plant will close its doors Friday.

    The United Auto Workers has said it plans to fight to keep GM product in the four plants. The UAW and the Detroit automakers recently entered contract negotiations. Contracts expire Sept. 14.

    The automaker also lost $279 million on the GM Cruise, the autonomous-vehicle unit of General Motors. Last month, Cruise announced an indefinite delay in the deployment of its driverless taxis. Cruise originally set a year-end launch deadline. When the taxis are deployed, they will launch in San Francisco.

    GM's sales of trucks and SUVs were expected to help its earnings this quarter as they did during the first quarter. Overall, GM's sales were down about 1.5% year-over-year in the April-through-June period.

    Sales of the Chevrolet Silverado 1500 crew cab and GMC Sierra 1500 crew cab, introduced in summer 2018, were both up 12%. Full production of all cab styles started in March, so sales of those models were down year over year because of limited availability.

  2. The Following 3 Users Say Thank You to InCogKneeToe For This Useful Post:

    1958carnut (08-01-2019),BlackGTP (08-01-2019),Vagon11 (08-01-2019)

  3. Remove Advertisements
    GM Inside News
    Advertisements
     

  4. #2
    6.0 Liter L76 V8 gkr778's Avatar
    Join Date
    Jun 2016
    Location
    Southaven, Mississippi USA
    Posts
    2,138
    Thanks
    2,453
    Thanked 1,899 Times in 1,000 Posts
    My Ride
    2014 BMW 320i and '72 Nova

    Re: Trucks give GM earnings increase in second quarter

    Looks like GM's "good enough" strategy with the T1XX trucks - minimizing product costs and targeting GM loyalists who are willing to pay the maximum price possible - was quite good indeed in terms of the impact to Q2 earnings.

    Here's the official press release from GM, including PDF versions of the earnings presentation and sales chart: https://media.gm.com/media/us/en/gm/...-earnings.html
    God and guns keep us strong. That's what this country was founded on. - Lynyrd Skynyrd

  5. The Following 5 Users Say Thank You to gkr778 For This Useful Post:

    1958carnut (08-01-2019),AMERICA 123 (08-04-2019),canadian.bacon (08-07-2019),Ed753 (08-01-2019),germeezy1 (08-01-2019)

  6. #3
    R2-D2 Astromech Droid bballr4567's Avatar
    Join Date
    Nov 2009
    Location
    Evansville, IN
    Posts
    17,234
    Thanks
    2,071
    Thanked 4,136 Times in 2,385 Posts
    My Ride
    2016 Camaro 1LT V6 M6

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by gkr778 View Post
    Looks like GM's "good enough" strategy with the T1XX trucks - minimizing product costs and targeting GM loyalists who are willing to pay the maximum price possible - was quite good indeed in terms of the impact to Q2 earnings.

    Here's the official press release from GM, including PDF versions of the earnings presentation and sales chart: https://media.gm.com/media/us/en/gm/...-earnings.html
    It's more like the restructuring saved them money more than the trucks made them money.

    The automaker saved $700 million during the second quarter through its restructuring efforts and $1.1 billion for the first half of the year. GM has said it will save up to $2.5 billion this year through restructuring, which includes cutting 15% of its salaried workforce and ceasing production of cars like the Lordstown, Ohio-built Chevrolet Cruze. In addition to the Lordstown Assembly Plant, the Warren Transmission Plant is also on GM's list of four "unallocated" plants in the U.S. The Warren plant will close its doors Friday.
    $2.5 billion over a year is nothing short of a sad miracle. It's certainly making GM leaner and making them more money.

  7. The Following 3 Users Say Thank You to bballr4567 For This Useful Post:

    1958carnut (08-01-2019),AMERICA 123 (08-04-2019),gkr778 (08-01-2019)

  8. Remove Advertisements
    GM Inside News
    Advertisements
     

  9. #4
    6.0 Liter L76 V8 gkr778's Avatar
    Join Date
    Jun 2016
    Location
    Southaven, Mississippi USA
    Posts
    2,138
    Thanks
    2,453
    Thanked 1,899 Times in 1,000 Posts
    My Ride
    2014 BMW 320i and '72 Nova

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by bballr4567 View Post
    It's more like the restructuring saved them money more than the trucks made them money.
    $2.5 billion over a year is nothing short of a sad miracle. It's certainly making GM leaner and making them more money.
    Good points. At least in the short term, GM's restructuring is an unqualified success. The company desperately needed to cut the fat, and it could benefit from cutting more in the near future.

    Long term, I wonder if GM's "zero, zero, zero" plan will remain true to the moniker from Forbes: Zero Hesitation, Zero Nostalgia, Zero Apologies. Or will "zero, zero, zero" be what GM Inside News member Neanderthal noted: Zero IQ?
    God and guns keep us strong. That's what this country was founded on. - Lynyrd Skynyrd

  10. The Following 4 Users Say Thank You to gkr778 For This Useful Post:

    1958carnut (08-01-2019),AMERICA 123 (08-04-2019),germeezy1 (08-01-2019),Neanderthal (08-01-2019)

  11. #5
    ksr
    ksr is offline
    6.2 Liter LS9 Supercharged V8 ksr's Avatar
    Join Date
    Mar 2007
    Location
    Hilton Head Island, SC
    Posts
    6,381
    Thanks
    862
    Thanked 2,578 Times in 1,195 Posts

    Re: Trucks give GM earnings increase in second quarter

    My first thought when I see a "GM makes lots of money" headline is, "Great!"

    My second thought is always that the UAW negotiations will be an even bigger headache.
    Drives a 2019 Cadillac ATS Coupe and a 1988 Pontiac Trans Am GTA.

    In the past, I've had a 5th gen Camaro, a CTS sedan and coupe, two 3rd gen Firebird Formulas, a convertible 4th gen Trans Am, a Reatta, a couple of Monte Carlos, an Avenger coupe, a couple of Cavalier hatchbacks, a Saturn SC1, and a Cherokee.

  12. The Following 6 Users Say Thank You to ksr For This Useful Post:

    1958carnut (08-01-2019),BlackGTP (08-01-2019),DequindreToo (08-01-2019),impala02 (08-01-2019),jzchev28 (08-01-2019),Neanderthal (08-01-2019)

  13. #6
    Ute
    Ute is offline
    3.6 Liter SIDI V6 Ute's Avatar
    Join Date
    Jan 2010
    Location
    Saint-Petersburg, Russia
    Posts
    1,169
    Thanks
    1,517
    Thanked 534 Times in 294 Posts

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by bballr4567 View Post
    $2.5 billion over a year is nothing short of a sad miracle. It's certainly making GM leaner and making them more money.
    Restructuring did not help Ford improve its performance. So 2.4B is not sad miracle, but much more effective cost management.
    Hidden Content

    Current car: Subaru Outback 3.0R 2008 MY
    Current car: Chevrolet Tahoe 2018 MY

  14. The Following 5 Users Say Thank You to Ute For This Useful Post:

    BlackGTP (08-01-2019),glssmann1 (08-01-2019),jzchev28 (08-01-2019),megeebee (08-01-2019),Vagon11 (08-01-2019)

  15. #7
    R2-D2 Astromech Droid Premium Member Neanderthal's Avatar
    Join Date
    Nov 2004
    Location
    A sunny cave in Transylvania
    Posts
    33,608
    Thanks
    7,720
    Thanked 6,155 Times in 3,893 Posts
    My Ride
    17 Soul&/01 PT LTD/15 JD130

    Re: Trucks give GM earnings increase in second quarter

    Wait. Don't trucks burn lots of petrol, compared to, say the Volt or ELR. Oh, wait again! They're gone, victims of zero creativity zero risk zero marketing zero stretching the envelope.

    So, petrol is bad. Trucks is good. 'lektrik self-driving fantasies are extra good, four legs good, two legs better. Very confusing.

    BUT, it IS good to make more money. That's the object of a bidness. This is so confusing.
    2017 Soul &, Titanium

    Where liberty dwells, there is my country. Benjamin Franklin

    The natural progress of things is for liberty to yield and government to gain ground. Thomas Jefferson

    Hidden Content Hidden Content Hidden Content

  16. The Following 4 Users Say Thank You to Neanderthal For This Useful Post:

    1958carnut (08-01-2019),AMERICA 123 (08-04-2019),canadian.bacon (08-07-2019),gkr778 (08-01-2019)

  17. #8
    Firebird Concept (the turbine one) germeezy1's Avatar
    Join Date
    Dec 2003
    Location
    Dearborn, MI
    Posts
    15,345
    Thanks
    271
    Thanked 205 Times in 127 Posts
    My Ride
    FORD

    Re: Trucks give GM earnings increase in second quarter

    I applaud the results, and at the same time I decry them. Because I know that GM will continue the mediocrity that is Silverado unless market shifts demand a better truck.
    I want a car so violent that the mere thought of full throttle would cause a heart attack. That actually going wide open throttle in would result in nothing less than instant death!
    Hidden Content
    Hidden Content

  18. The Following User Says Thank You to germeezy1 For This Useful Post:

    AMERICA 123 (08-04-2019)

  19. #9
    R2-D2 Astromech Droid bballr4567's Avatar
    Join Date
    Nov 2009
    Location
    Evansville, IN
    Posts
    17,234
    Thanks
    2,071
    Thanked 4,136 Times in 2,385 Posts
    My Ride
    2016 Camaro 1LT V6 M6

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by Ute View Post
    Restructuring did not help Ford improve its performance. So 2.4B is not sad miracle, but much more effective cost management.
    Yes, it's a sad miracle when GM is closing towns down after promising them the moon. I understand the business costs but I don't think GM understands the business lost for it.

  20. The Following 2 Users Say Thank You to bballr4567 For This Useful Post:

    AMERICA 123 (08-04-2019),Evo69 (08-07-2019)

  21. #10
    R2-D2 Astromech Droid bballr4567's Avatar
    Join Date
    Nov 2009
    Location
    Evansville, IN
    Posts
    17,234
    Thanks
    2,071
    Thanked 4,136 Times in 2,385 Posts
    My Ride
    2016 Camaro 1LT V6 M6

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by germeezy1 View Post
    I applaud the results, and at the same time I decry them. Because I know that GM will continue the mediocrity that is Silverado unless market shifts demand a better truck.
    Why would they!?!? According to the arm chair CEOs here the trucks are good enough so why should GM make them better if they're making money on them. A better indicator will be next year when they don't have the restructuring costs covering their real results.

  22. The Following User Says Thank You to bballr4567 For This Useful Post:

    germeezy1 (08-01-2019)

  23. #11
    3.6 Liter SIDI V6 sdotjeezy's Avatar
    Join Date
    Jan 2017
    Posts
    1,143
    Thanks
    353
    Thanked 977 Times in 482 Posts

    Re: Trucks give GM earnings increase in second quarter

    Ok...so I have a confession, I saw a lifted Bro-ed up Red Silverado Custom or RST yesterday, and I must admit It looked freaking nice. Just sucks that the interior is so bad.
    My Rides:
    '19 Buick Enclave
    '07 Dodge Magnum SRT-8
    '19 Mazda 6


    Hidden Content

  24. The Following User Says Thank You to sdotjeezy For This Useful Post:

    Ed753 (08-01-2019)

  25. #12
    4.6 Liter Northstar V8 fastrehotrods's Avatar
    Join Date
    Dec 2004
    Location
    Queen Creek, AZ
    Posts
    1,585
    Thanks
    318
    Thanked 1,643 Times in 776 Posts
    My Ride
    2014 Ram Sport 4X4

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by sdotjeezy View Post
    Ok...so I have a confession, I saw a lifted Bro-ed up Red Silverado Custom or RST yesterday, and I must admit It looked freaking nice. Just sucks that the interior is so bad.
    IMO, that's mandatory. The best one I saw a couple week ago was at my gym. It was brown, lifted, with bronze Method Race Wheels. The lift takes away from the too huge front end. But on that note, all new trucks look better lifted too, so while I appreciate how that Silverado looked, still doesn't win me over, especially when the inside is factored in.
    The Stable: 2014 Ram Sport 4x4 with 18" Method Racing MR310's wrapped in 35's, 71 Firebird Formula 455 Ridetech equipped, 57 Ford Custom 300, 66 GTO 4 speed, 67 Camaro LT1/T56, 70 El Camino, 71 Camaro future LSX, 82 Z28, 63 Thunderbird, 75 Pontiac Astre GT 406, 65 Dart 318, 87 S10 Blazer, 88 Silverado, 58 Edsel Pacer, 64 Volvo 544. Past: 98 Trans Am 6 speed-432 rwhp, 71 Chevelle SS 454, 71 Camaro 350/4 speed, 66 Mustang 393/T5, 86 GMC Jimmy

  26. The Following 2 Users Say Thank You to fastrehotrods For This Useful Post:

    germeezy1 (08-01-2019),mbukukanyau (08-03-2019)

  27. #13
    4.4 Liter Supercharged Northstar MechEng's Avatar
    Join Date
    Mar 2006
    Location
    Ontario, Canada
    Posts
    2,645
    Thanks
    63
    Thanked 700 Times in 337 Posts
    My Ride
    2018 Volt + 2018 Bolt EV

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by Neanderthal View Post
    Wait. Don't trucks burn lots of petrol, compared to, say the Volt or ELR. Oh, wait again! They're gone, victims of zero creativity zero risk zero marketing zero stretching the envelope.

    So, petrol is bad. Trucks is good. 'lektrik self-driving fantasies are extra good, four legs good, two legs better. Very confusing.

    BUT, it IS good to make more money. That's the object of a bidness. This is so confusing.
    It's very simple actually.

    New trucks burn less and are cleaner than old trucks. They are also highly profitable which earns more money to develop electric trucks that will earn GM even more money and be even more profitable making their shareholders very happy.
    See my cars stats below Hidden Content
    2018 Volt - Hidden Content
    2018 Bolt EV - Hidden Content

  28. The Following User Says Thank You to MechEng For This Useful Post:

    megeebee (08-01-2019)

  29. #14
    4.4 Liter Supercharged Northstar 61BelAir's Avatar
    Join Date
    Dec 2004
    Location
    California
    Posts
    2,688
    Thanks
    157
    Thanked 481 Times in 261 Posts

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by bballr4567 View Post
    It's more like the restructuring saved them money more than the trucks made them money.



    $2.5 billion over a year is nothing short of a sad miracle. It's certainly making GM leaner and making them more money.
    GM makes bank on trucks and with GM initially releasing only the more expensive crew cab models, the new trucks definitely added to their bottom line. Add in the fact that the new trucks had the highest ATP of the domestic trucks, and its all gravy.

  30. The Following 2 Users Say Thank You to 61BelAir For This Useful Post:

    Evo69 (08-07-2019),jzchev28 (08-02-2019)

  31. #15
    Firebird Concept (the turbine one) germeezy1's Avatar
    Join Date
    Dec 2003
    Location
    Dearborn, MI
    Posts
    15,345
    Thanks
    271
    Thanked 205 Times in 127 Posts
    My Ride
    FORD

    Re: Trucks give GM earnings increase in second quarter

    Quote Originally Posted by MechEng View Post
    It's very simple actually.

    New trucks burn less and are cleaner than old trucks. They are also highly profitable which earns more money to develop electric trucks that will earn GM even more money and be even more profitable making their shareholders very happy.
    Pray tell did you just say the words electric trucks, and earn more money in the same sentence? I was not sure if my eyes were in fact deceiving me.
    I want a car so violent that the mere thought of full throttle would cause a heart attack. That actually going wide open throttle in would result in nothing less than instant death!
    Hidden Content
    Hidden Content

  32. The Following User Says Thank You to germeezy1 For This Useful Post:

    AMERICA 123 (08-04-2019)

  33. Remove Advertisements
    GM Inside News
    Advertisements
     

Page 1 of 4 123 ... LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2