GM EVP Global Manufacturing Alicia Boler Davis (center) and GM Chairman and CEO Mary Barra. The CAW and UAW contracts will loom large in GM’s 2019 results.
Only GM International posted a sales gain (133,616 or a meager +18,389) in Q1 as GM Europe, China, North America and South America posted declines for a total of 1.8m vehicles sold during Q1. As a result, Net Revenue was basically flat at $35B (-3.4% y-o-y) Income dropped 12% (EBIT Adjusted $2.3B). Its Lyft investment helped boost results.
The only core business bright spot is the sales of expensive pickup trucks, which GM claims will really jump-start earnings during the second half of the year, if – big if – markedly increased production from RAM and Ford, rising gas prices and a sluggish economy don’t alter the current celebratory mood.
“GM’s first-quarter operating results were in line with expectations we shared in January,” said Mary Barra, Chairman and CEO. Clearly reading from a boosting Investor Relations script, “My confidence in the year ahead remains strong, driven by our all-new full-size truck launch and our ongoing business transformation,” Barra, who made more than $20 million last year, said.
Q1 sales of the 2019 Chevrolet Silverado and GMC Sierra light-duty crew cabs were up 20% year over year, GM wants to launch high-content, high-margin trucks first. These all-new crew cab models generated transaction prices nearly $5,800 higher than the crew-cab models they replace (Q1 2018, J.D. Power PIN). The 2019 GMC Sierra leads the segment in pricing, with more than 95% of its sales in high-end models. Full production of regular and double cabs began in March, as planned.
GM begins the next phase of its full-size pickup truck launch in the second half of the year with the 2020 Chevrolet Silverado HD and GMC Sierra HD. These vehicles will be built at Flint Assembly, where 1,000 jobs were added, and capacity increased to meet anticipated customer demand.
This is a UAW contract year, which could cause big problems since it’s closing plants that U.S. taxpayers bailed out. Since 2009, GM has invested $22 billion in the U.S., including $4.3 billion since the beginning of 2017. (GM Canada Sales Drop 15% as Boycott Bites, GM to Invest $36 Million in Lansing Plant. Oshawa Still Doomed, About Face: GM to Add 400 Jobs for New Chevy Electric Vehicle after Critical Trump Tweets About Closing Lordstown, GM Strikes Out Against Usually Winless UAW as Mexican-Made Blazer Pulled from Opening Day Lineup in Detroit)
GM begins the next phase of its full-size pickup truck launch in the second half of the year with the 2020 Chevrolet Silverado HD and GMC Sierra HD. These vehicles will be built at Flint Assembly, where 1,000 jobs were added and capacity increased to meet anticipated customer demanded on the Bolt EV architecture, adding 400 new jobs. The company is also adding a second shift and more than 400 new jobs at its Bowling Green, Kentucky plant to support production of the next-generation Corvette. GM has invested more than $900 million in its Bowling Green facility since 2011.
GM claims it is making job opportunities available for all 2,800 U.S. hourly employees impacted by the company’s decision to close plants. More than 1,300 hourly employees have accepted jobs at other GM facilities supporting growth segments including trucks, crossovers and SUVs. These displaced workers have little choice.
GM Soft Q1 Income of $2.1B as N.A., International Decline
GM EVP Global Manufacturing Alicia Boler Davis (center) and GM Chairman and CEO Mary Barra. The CAW and UAW contracts will loom large in GM’s 2019 results.
Only GM International posted a sales gain (133,616 or a meager +18,389) in Q1 as GM Europe, China, North America and South America posted declines for a total of 1.8m vehicles sold during Q1. As a result, Net Revenue was basically flat at $35B (-3.4% y-o-y) Income dropped 12% (EBIT Adjusted $2.3B). Its Lyft investment helped boost results.
The only core business bright spot is the sales of expensive pickup trucks, which GM claims will really jump-start earnings during the second half of the year, if – big if – markedly increased production from RAM and Ford, rising gas prices and a sluggish economy don’t alter the current celebratory mood.
“GM’s first-quarter operating results were in line with expectations we shared in January,” said Mary Barra, Chairman and CEO. Clearly reading from a boosting Investor Relations script, “My confidence in the year ahead remains strong, driven by our all-new full-size truck launch and our ongoing business transformation,” Barra, who made more than $20 million last year, said.
Q1 sales of the 2019 Chevrolet Silverado and GMC Sierra light-duty crew cabs were up 20% year over year, GM wants to launch high-content, high-margin trucks first. These all-new crew cab models generated transaction prices nearly $5,800 higher than the crew-cab models they replace (Q1 2018, J.D. Power PIN). The 2019 GMC Sierra leads the segment in pricing, with more than 95% of its sales in high-end models. Full production of regular and double cabs began in March, as planned.
GM begins the next phase of its full-size pickup truck launch in the second half of the year with the 2020 Chevrolet Silverado HD and GMC Sierra HD. These vehicles will be built at Flint Assembly, where 1,000 jobs were added, and capacity increased to meet anticipated customer demand.
This is a UAW contract year, which could cause big problems since it’s closing plants that U.S. taxpayers bailed out. Since 2009, GM has invested $22 billion in the U.S., including $4.3 billion since the beginning of 2017. (GM Canada Sales Drop 15% as Boycott Bites, GM to Invest $36 Million in Lansing Plant. Oshawa Still Doomed, About Face: GM to Add 400 Jobs for New Chevy Electric Vehicle after Critical Trump Tweets About Closing Lordstown, GM Strikes Out Against Usually Winless UAW as Mexican-Made Blazer Pulled from Opening Day Lineup in Detroit)
GM begins the next phase of its full-size pickup truck launch in the second half of the year with the 2020 Chevrolet Silverado HD and GMC Sierra HD. These vehicles will be built at Flint Assembly, where 1,000 jobs were added and capacity increased to meet anticipated customer demanded on the Bolt EV architecture, adding 400 new jobs. The company is also adding a second shift and more than 400 new jobs at its Bowling Green, Kentucky plant to support production of the next-generation Corvette. GM has invested more than $900 million in its Bowling Green facility since 2011.
GM claims it is making job opportunities available for all 2,800 U.S. hourly employees impacted by the company’s decision to close plants. More than 1,300 hourly employees have accepted jobs at other GM facilities supporting growth segments including trucks, crossovers and SUVs. These displaced workers have little choice.