Truck, SUV profits push GM 1Q profit 8 times above year ago

Associated Press ^ | Apr 23, 2015 8:35 AM EDT | Tom Krisher

[Olog-hai]

First-quarter profit at General Motors rose nearly eight times above a year ago as U.S. consumers spent big on pickups and SUVs and the company didn’t have to set aside a huge stack of money to pay for recalls.

The Detroit automaker said it made $945 million, as consumers got used to lower gasoline prices and decided to buy bigger vehicles. That’s right in GM’s sweet spot, with trucks such as the Chevrolet Silverado pickup and Cadillac Escalade large SUV. Profit margins on the trucks are sizable, with analysts estimating that GM makes more than $10,000 per vehicle.

In the U.S., where GM still makes most of its money, the company sold more than 198,000 pickups, the best first quarter for the vehicles in eight years, according to Ward’s Automotive. The company also sold nearly 55,000 big SUVs, the best January-through-March period in seven years. It’s cheaper to fuel a big vehicle. Gas prices have now been $3 per gallon or lower for six months. Regular was around $2.49 Thursday, according to AAA, compared with $3.67 a year ago.

The increased profit on trucks is “clearly a favorable tailwind,” Chief Financial Officer Chuck Stevens said, boosting GM’s bottom line by $500 million during the quarter. …

[Olog-hai]

They did Bolt from the Volt.

[caver]

“the company didn’t have to set aside a huge stack of money to pay it’s bills.”

Fixed it.

[libertarian27]

I wonder how many of those sales are to Federal, State and local government agencies.
The 2009 Stimulus program saw thousands of vehicle purchased with stimulus money....6 years later....time again?

[IronJack]

This must drive the greenies up a tree!

[Olog-hai]

Hence Obama’s doubling down on “climate change” rhetoric while he makes a non-deal with Iran to pay them to make nukes.

[thulldud]

It surely didn't have to set aside a huge stack of money to repay its jilted bondholders, thanx to the Won.

[Ditter]

MrD is planning on buying a new Cheve P/U soon. I have always driven a Cheve Suburban/Tahoe. I did have a Ford SUV for a short while. I hated it!

[GizzyGirl]

“I wonder how many of those sales are to Federal, State and local government agencies.”

I'm sure there are many FReeper family members who have purchased a Chevy since the Obama bailout—but I am, and will never be one of them! The GM/Chevy brand is dead to me, forever!

[V_TWIN]

Owned 5 gm vehicles in a row, purchased the last one in 2003 and still have it. Time for a new vehicle for my wife but we will be avoiding anything gm. After the Obama bailout coupled with the fact that they obviously have major quality issues based on all the recalls and the fact I’d rather not support a union even indirectly, we’ll be going in another direction this time around.

[moovova]

“It’s cheaper to fuel a big vehicle. Gas prices have now been $3 per gallon or lower for six months.”

These were the lower gas prices created by the Emperor’s support of fracking and the XL pipeline, right?

[RayChuang88]

I think if GM were smart, they should convert most of their trucks and SUV's to be powered by a new generation of very clean-burning turbodiesel engines (e.g., the V-8 Duramax and smaller derivatives using the same technology). For example, the Chevrolet Trax with an I-4 1.7-liter turbodiesel engine would be a hot seller in the USA.

[DCBryan1]

Owned 5 gm vehicles in a row, purchased the last one in 2003 and still have it. Time for a new vehicle for my wife but we will be avoiding anything gm. After the Obama bailout coupled with the fact that they obviously have major quality issues based on all the recalls and the fact I’d rather not support a union even indirectly, we’ll be going in another direction this time around.

Then you, my friend, will enjoy a Toyota Tundra or Tacoma. Made in TX by Americans. No unions.

I join you too, in the fact that I have a 2005 Avalanche. Love it! but it will be my last GM product. We had friends and family lose THOUSANDS in GM preferred stock, common stock, and corporate bonds.

I could have owned GM at 18-19 ...now trading upper 30s, nearly doubling my money, but I own F now, and getting a small dividend.

Yes, Ford (F) is union, and I probably won't buy a Ford truck, but I will let them pay me a dividend.

[DCBryan1]

I think if GM were smart, they should convert most of their trucks and SUV's to be powered by a new generation of very clean-burning turbodiesel engines (e.g., the V-8 Duramax and smaller derivatives using the same technology). For example, the Chevrolet Trax with an I-4 1.7-liter turbodiesel engine would be a hot seller in the USA.

Smart move, but at a high price, is the 2500 series CNG truck. $11,000.00 natural gas option.

I WOULD like to buy that truck, used in a couple of years and let the new owner take the depreciation hit.

[V_TWIN]

“Then you, my friend, will enjoy a Toyota Tundra or Tacoma. Made in TX by Americans. No unions.”

Funny you should say that. Turned in my 1996 gmc sierra in 2009 for a new 2009 Toyota Tacoma, hasn’t missed a lick since I bought it (66K miles). Having said that, I did love my sierra, 5.7 vortec V8. Only thing was at 159k miles the trans was just about to let go. 159k seemed kinda early to me so I made a move. The wife’s new ride will more than likely be in the Toyota family too.

[RayChuang88]

While the CNG conversion sounds like a good idea, don’t forget CNG refueling is not such a great idea in rural areas and you need bigger, heavier fuel tanks for CNG. I still think a new generation of cleaner turbodiesels is a better solution for light trucks and larger SUV’s.

[mowowie]

Sorry....
http://en.wikipedia.org/wiki/Chevrolet_Bolt