General Motors’ first-quarter earnings report revealed turmoil in international markets and a shrinking presence in North America, but net income rose to $2.1 billion, up from $1.1 billion a year ago, and adjusted earnings per share ($1.41) beat out estimates of $1.11. Still, that wasn’t enough to stop its stock from sliding in pre-market trading, as revenue of $34.9 billion undercut analyst estimates of $35.28 billion. Pre-tax earnings fell 11 percent.

In its report, GM wanted to talk about trucks. You know the ones — the revamped 2019 Silverado and Sierra 1500 crew cabs, now featured in half of the pop-up ads on your author’s computer and phone, advertising 0% financing. (Read More…)

That headline was unavoidable, by the way. On the same day Ford Motor Company released a better than expected first-quarter earnings report, it also revealed the Justice Department has opened a criminal investigation into its emissions certification process — a probe that could see fuel economy ratings rolled back.

Wall Street seemed much more interested in the financial news, however, giving the company’s stock a much-needed lift. In the Glass House, Jim Hackett must be smiling. (Read More…)

The chief money man at the Blue Oval plans to hang up his Excel spreadsheets by the end of this year, according to sources in the know. He’s expected to stay on until a new top beancounter is broken in.

Why should you care? Because the Glass House is in the throes of a major product overhaul and under constant scrutiny from Wall Street, that’s why. Any shakeup in the corner offices is bound to have an effect on both activities, especially when recent earnings have been disappointing.

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Despite a year-over-year sales drop in the fourth quarter of 2018, a higher average transaction price spurred by growth in high-margin vehicle sales in North America returned better than expected Q4 earnings for General Motors.

The company’s strong showing comes as its overseas ventures sank and headwinds gathered at home and abroad; mainly, predictions of a slower 2019. That’s GM’s outlook, too, which explains why CEO Mary Barra isn’t backpedaling on her plan to shutter five North American plants. (Read More…)

No, not just because American buyers open their wallets for anyone hawking a high-riding vehicle; rather, because an influx of cash would help stabilize Honda’s balance sheet.

The automaker’s global profits took a 40 percent haircut in the fiscal quarter ending December 31, with net income falling 71 percent in the same time frame. North America wasn’t a fiscal fortress, either. While a new crossover that straddles segment boundaries isn’t the cure for all that ails Honda, it’s anything but hindrance. (Read More…)

It’s generally agreed that former Ford CEO Mark Fields was shown the door after failing to turn around the company’s steadily declining stock, but his successor hasn’t had any success on that front, either.

Jim Hackett took over in May of 2017 and, despite an ongoing cost-cutting program and numerous new model (and technology) promises, Ford’s share price shows no lift. Wednesday’s earnings call was easily the worst of Hackett’s tenure. (Read More…)

Thanks mainly to the unloading of its longstanding European operations, General Motors reported a $3 billion net loss in the third quarter of 2017, according to an earnings report released Tuesday.

Punting responsibility of its Opel and Vauxhall subsidiaries to France’s PSA Group definitely didn’t come without a penalty, with most of the expense ($5.4 billion related to deferred tax assets and pension costs) incurred during the last quarter. Still, GM prefers the one-time earnings hit to keeping an unprofitable operation alive on the other side of the Atlantic.

While the Opel sale cut into the automaker’s balance sheet, The General also saw less earnings from car sales. Production declined in Q3 2017 compared to last year, and that meant less black ink. Still, GM doesn’t see many dark clouds. Why? One word: crossovers. (Read More…)

First-quarter earnings just released by Volkswagen Group show a massive hit to the company’s namesake brand, all thanks to fallout from the diesel emissions scandal.

Profit at Volkswagen passenger cars fell 86 percent to 73 million euros ($81 million), down from 514 million euros last year. That plunge leaves the brand with a nano particle-thin operating margin of 0.3 percent.

Still, the scandal isn’t a killing blow for the company. Why? Investment advisers aren’t lying when they say diversity is key to weathering shocks. (Read More…)

Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

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General Motors announced Wednesday that third quarter, adjusted profit for the company was $3.1 billion, led by truck sales in North America and car sales in China. The net revenue was down $500 million from the same period last year, which GM says is due to currency fluctuations, but the automaker’s profits were decidedly higher.

Automotive News reported that the profit margin was the largest for GM since its 2009 bankruptcy, even after its $1.5 billion charge to settle claims related to its defective ignition switch that resulted in 124 deaths.

The automaker posted an 11.8 percent profit margin — also its largest since 2009 — and said it would end the year above 10 percent.  (Read More…)

After Tesla Motors announced last week that it had lost $184 million in the second quarter of this year on lower vehicle deliveries and higher spending on its factory ahead of a new model, analysts say the company could have a bumpier road ahead if it can’t raise cash soon.

According to a Reuters report, Tesla is losing $4,000 on each car it sells, and the company’s ability to raise capital could be severely hampered by its spending now and its inability to create positive cash flow in a luxury market that is extremely favorable.

“A capital raise, given the way they’re burning cash today, given the fact that they have future investment needs, seems very likely at some point,” UBS Securities analyst Colin Langan told Reuters.

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Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.

Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.

The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.

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Ford announced that it made a $1.9 billion net-adjusted profit in the second quarter of 2015, marking the largest gain for the automaker since 2000, according to Automotive News.

The profit represents a 44-percent gain over last year despite dipping global sales and a stronger U.S. dollar hampering exports. Ford said it was selling cars for more money and offering fewer incentives, despite recent reports of F-150 incentives topping nearly $11,000 in some places.

Ford said revenues in North America surged 10 percent, which helped the company beat Wall Street’s expectations.

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TrueCar CEO Scott Painter said his company will miss expected earnings for the second quarter, and said the company needed a “wake-up” in his call, Automotive News is reporting.

The news sent shares of TrueCar plummeting more than 35 percent. TrueCar closed Friday down 3.81 down to $6.87 per share.

Painter said a lack of marketing was to blame for the company’s struggles in the second quarter, not the recent highly publicized split with AutoNation.

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Autoblog reports the first several thousand kits meant for repairing a handful of General Motors vehicles affected by the February 2014 ignition switch recall have been shipped off to dealers. In addition, 1.4 million recall letters have been mailed out to affected consumers of 2003 – 2007 vehicles; 2008 – 2011 affected owners will receive their letters in the coming weeks. The letters inform consumers to schedule the repair with their dealer, which GM claims will take 90 minutes to complete. Until the repair occurs, the automaker instructs all consumers to have nothing more than the key itself prior to insertion, and to be sure their transmissions and switches are set in place before removing the key.

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