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GM Q2 Earnings More Than Double Even as Sales Slip

Globe’s 3rd-largest automaker ups full-year forecast.

by on Jul.21, 2016

GM has been rushing out an assortment of new models, including a remake of the Chevy Malibu.

General Motors saw its second-quarter profit more than double, reaching a record $2.87 billion, the maker announced on Thursday, handily beating Wall Street expectations.

The surge came despite the fact that GM has seen sales slip in recent months – even while the overall U.S. car market continues to grow. The results appear to validate the strategy of trimming back on lower-profit rental and other fleet sales in favor of growing the retail side of the sales ledger.

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“This was an outstanding quarter for GM,” said Chairman and CEO Mary Barra. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide. We’ll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility.”


Chevy Adding Cruze Hatch

Five-door original designed for European market.

by on Jan.07, 2016

Chevrolet announced it would be adding a hatchback to its 2017 Cruze line-up in the United States.

Chevrolet has confirmed long-running rumors that it will bring its five-door Cruze model to the U.S. for the 2017 model-year.

Frequently seen running around the Motor City in thinly camouflaged form, the hatchback version of the Chevrolet Cruze was originally developed for the European market, where five-door models are as dominant as sedans are in the U.S. passenger car market.

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The arrival of the Cruze five-door comes as more and more manufacturers rethink the potential U.S. market. It has long been accepted as gospel that Americans don’t like hatchbacks, but a number of recent offerings have challenged that assumption. (more…)

GM Beats Q2 Forecast with Nearly $1.2 Bil Net Income

EBIT-adjusted earnings are best for any quarter since 2009 bankruptcy.

by on Jul.23, 2015

General Motors CEO Mary Barra remains upbeat about the coming months despite problems in China.

Despite being hit with a $1.1 billion special charge, General Motors managed to deliver a second-quarter profit of nearly $1.2 billion, or $0.67 a share – its biggest three-month profit since emerging from bankruptcy in July 2009 – with strong demand for its North American trucks helping fuel the strong performance.

Factoring in one-time charges equal to $0.62 a share, GM handily outperformed the Wall Street consensus forecast of $1.08 per share. And the second-quarter numbers compared with the modest $190 million, or $0.11, GM reported for the April-June 2014 numbers.

We Earn Your Trust!

“The first two quarters of the year were strong as we fully capitalized on a robust North American industry and maintained our strength in China, despite the challenging conditions in that market,” GM CEO Mary Barra said in a statement. “We said our goal was to improve our earnings and margins this year, and we are on plan.


Canada Bails Out of GM Stock for $2.7 Billion

Government sells its shares to Goldman Sachs.

by on Apr.07, 2015

Unifor President Jerry Dias said the Canadian government shouldn't sell its stake in GM in order to have some leverage in manufacturing decisions.

Government Motors is now officially dead: really. The Canadian government announced it is selling its $2.7 billion stake in General Motors Co. to Goldman, Sachs & Co. by the end of this week.

The Canada GEN Investment Corp., a subsidiary of Canada Development Investment Corp., plans to sell its 73.4 million shares of GM in a single unregistered block.

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The government received the shares as part of the 2009 bailout of the company, and more details about the sale will be available in the “next several days” after Canada GEN reports the trade with U.S. and Canadian securities regulators. (more…)

Buick Drops Top in 2016 with New Convertible: Cascada

Brand debuts first convertible in 25 years.

by on Jan.11, 2015

Buick's back in the droptop market wih the all-new 2016 Cascada. The convertible is expected to hit dealer showrooms early in 2016.

Buick’s efforts to ditch its stodgy and staid reputation took another step forward today as it rolled out its first convertible in 25 years: the 2016 Cascada, which will go on sale early next year.

The new ragtop is a convertible from the word go, not a retrofitted coupe or sedan. Set up as a 2+2 that will seat four adults, the Cascada is a departure from the division’s last convertible: the poor-selling Buick Reatta. Pricing was not announced.

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“The new, 2016 Buick Cascada is a beautiful, engaging convertible that represents the very best of the brand’s global development practices,” said Duncan Aldred, vice president of Buick, in a statement. “It’s a car that will delight customers with its fun spirit and help drive the momentum that’s fueling Buick’s success.” (more…)

Your Next GM Car Could Alert You Before it Breaks Down

Maker developing “active, preventive maintenance system.”

by on Nov.14, 2014

The next version of the Chevy Impala may alert you to a possible mechanical problem before it happens.

If you haven’t just gotten your driver’s license last week, odds are you’ve faced that mysterious and inexplicable “Check Engine” light at least once or twice, leaving you the choice of heading to the dealer or ignoring the indicator, hoping the bulb might burn out.  Then again, you might have gotten no warning whatsoever when your battery died or a water pump failed.

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General Motors is developing an “active, preventive maintenance” system that could avoid such headaches by giving a motorist a detailed alert before something on the vehicle breaks, says the maker’s global product development chief.

“We’re testing the system now with our employees,” noted Mark Reuss, during a lunchtime interview.


Feds Launch Probe of GM Recall

Maker admits response to ignition switch defect was not "robust" enough.

by on Feb.27, 2014

The old Chevrolet Cobalt was one of a variety of GM models covered by the now-expanded recall.

U.S. safety regulators have begun a probe into General Motors’ response to a safety defect that caused 13 deaths, a series of recalls the automaker now admits wasn’t “robust” enough.

The National Highway Traffic Safety Administration has been advised by the maker that it actually knew of the problem for as much as a decade but only this month ordered a recall of nearly 800,000 cars – more than doubling that figure with a second recall announced this week. Should GM be found to have broken federal regulations, the maker could face a fine of up to $35 million. But it is also facing legal action related to crashes caused by the defect.


NHTSA says it wants “to determine whether GM properly followed the legal processes and requirements for reporting recalls.” Federal regulations give a manufacturer only a short window to respond once it learned of a potential safety defect.  The chronology of events the maker provided this week suggests that may not have happened, having first learned of the problem in 2004. The maker learned of the first fatal crash by 2007.

“The chronology shows that the process employed to examine this phenomenon was not as robust as it should have been,” GM North America President Alan Batey acknowledged in an unusually candid statement. “Today’s GM is committed to doing business differently and better.”


GM Revenue Up Slightly for Q4, Full Year

Maker paying profit sharing up $7,500 to hourly employees.

by on Feb.06, 2014

General Motors Co. (NYSE: GM) today reported 2013 calendar-year net income of $3.8 billion, or $2.38 per fully-diluted share.

While its revenue for the quarter and the year rose, General Motors reported its fourth-quarter earnings were flat and full-year earnings were down on a year-over-year basis due to special charges related to some of the company’s restructuring actions.

However, the company’s positive performance in North America buoyed its quarter and year and resulted in its eligible hourly employees expected to received profit sharing checks up to $7,500 each.

Performance Matters!

“Launches of some of the best vehicles in our history combined with significant improvements in our core business led to a solid year,” said GM CEO Mary Barra. “The tough decisions made during the year will further strengthen our operations. We’re now in execution mode and our sole focus will be on delivering results on a global basis.” (more…)

Even at $4.4 Mil, New GM CEO Mary Barra’s Pay May Suffer from Gender Inequality

“Retired” chief executive Akerson will continue to draw large salary.

by on Jan.20, 2014

GM CEO Mary Barra with her Ford counterpart Alan Mulally during last week's black tie preview at the North American International Auto Show.

(This story has been revised to reflect additional comments by General Motors on its executive compensation strategy.)

There have been countless surveys over the years that find women in the workforce make less money than their male counterparts and, apparently, that’s true at even the highest levels — including the new chief executive officer at General Motors.

GM has revealed that its new CEO Mary Barra stands to earn as much as $4.4 million in her first year on the job.  That’s if she collects on the full $2.8 million that’s set aside as part of a short-term incentive plan.  (She also could collect a potential $1 million in a new stock offering.)  But Barra’s base salary is $1.6 million – a full $100,000 less than outgoing CEO Dan Akerson made in 2012 and 2013.

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And Akerson will continue to out-earn Barra, at least for the time being.  Though he retired last week – months ahead of the original plan due to his wife’s serious bout with cancer – the former Navy pilot will remain a GM consultant for which his base salary will be larger than Barra’s, according to GM documents filed with the Securities and Exchange Commission.


GM CEO Akerson Rejects Repaying Government for Losses

“The die was cast,” said executive.

by on Dec.17, 2013

GM CEO Dan Akerson said the government took the same risks as other investors.

Soon-to-retire General Motors Chairman and CEO Dan Akerson has said thanks, but no thanks, to suggestions the now-profitable automaker should pay back the roughly $10 billion the U.S. Treasury is believed to have lost on its 2009 bailout of the then-bankrupt automaker.

Speaking at the National Press Club in Washington, D.C., Akerson told his audience that the government took a risk like any other investor – including those wiped out when GM filed for Chapter 11 protection.  And, the CEO stressed, the bailout was far less expensive than the tens of billions of dollars in lost taxes and other revenues that would have been lost if GM had gone out of business.

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“I would not accept the premise that this was a bad deal,” said Akerson, who plans to retire on January 15, when his protégé Mary Barra becomes the first woman CEO at a major auto manufacturer. “The die was cast” when the government decided to take shares rather than make its investment in the form of a loan, Akerson emphasized.