Tag: GM

GM CEO Barra says the automaker is watching China trade ‘very carefully’

General Motors Chairman & CEO Mary Barra (L) and President of General Motors China Matt Tsien attend a press conference in Shanghai, China September 15, 2017.

General Motors is keeping a close eye on China, CEO Mary Barra said Wednesday.

GM said its luxury brand Cadillac had record sales in China despite an ongoing trade war that's raised prices on steel and aluminum as well as on the vehicles themselves.

“We're watching it carefully and we're very hopeful that both sides will have dialogue and get to the table to work through some very important issues that both China and the United States have as it relates to trade,” Barra told analysts on a conference call Wednesday discussing GM's third-quarter earnings. “When we look at our positioning, we have many levers that we can pull to continue to have strong performance in China.”

While Ford and other automakers have reported trouble in China for the third quarter, it was a bright spot for GM.

The company reported record third-quarter “equity income” in the country, led by a 4 percent increase in Cadillac sales there. GM uses equity income to measure its performance in the region since the company follows the standard industry practice of selling its vehicles through a joint venture with Chinese manufacturer SAIC. Each company owns a 50 percent stake in the venture.

Barra told analysts the partnership has served GM well.

“I think we have the strongest partner in China with SAIC,” she said.

“At this time we are not looking to change the 50-50 structure,” Barra added. “It has served us well, and I think the strength of our results demonstrate that.”

But at the same time, sales in the country were down 15 percent over the same quarter last year, and there are signs of trouble in the region. A recent report from Bloomberg said the Chinese government is considering a cut to taxes on auto purchases to revive flagging sales.

GM said it was able to charge more for cars during the quarter and the declines came from less its profitable segments. It also said that sales of its luxury vehicles were up.

GM to offer buyout to some workers in cost-cutting move: DJ

GM offering buyouts to salaried employees
29 Mins Ago | 01:32

General Motors is offering buyouts to salaried workers to help cut costs, Dow Jones reported Wednesday. About 18,000 employees are eligible.

The company said it is making the move now to take advantage of the strong economy and its own healthy performance. The largest U.S. automaker reported better than expected earnings on Wednesday, fueled by strong sales of trucks and crossovers in North America.

GM was not immediately available for comment.

The automaker is making the cuts in response to rising commodity costs, said CFRA analyst Garrett Nelson. The hope is enough workers take the buyouts, the automaker will not have to resort to layoffs.

GM's U.S. rival Ford said in early October it plans to thin the ranks of its salaried workforce by the second quarter of next year.

Uber and Lyft unveiled new subscription plans. But are they really worth the money?

On Tuesday, Uber rolled out Ride Pass, a subscription plan in which customers pay $14.99 monthly (or $24.99 in Los Angeles) to avoid surge pricing. The plan, which Uber is marketing as “an affordable option people can use for their everyday transportation needs,” is only available in Los Angeles, Austin, Orlando, Denver, and Miami for… Continue reading Uber and Lyft unveiled new subscription plans. But are they really worth the money?

GM offering buyouts to cut North American salaried staff

FILE PHOTO: The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. REUTERS/Rebecca Cook/File Photo DETROIT (Reuters) – General Motors Co (GM.N) said on Wednesday it plans to cut its North American salaried workforce, starting with voluntary buyout offers but resorting to layoffs if necessary.… Continue reading GM offering buyouts to cut North American salaried staff

Cruise Struggles But Progresses Toward Autonomous Chevy Bolt EV’s

Autonomous Chevy Bolt EVs likely to reach many major cities in “single digit years, not decades” GM CEO Mary Barra recently spoke with The Atlantic at City Lab Detroit about the future of autonomous and electric vehicles. There she again made a call for a national ZEV program. She also re-iterated the need for government… Continue reading Cruise Struggles But Progresses Toward Autonomous Chevy Bolt EV’s

Faraday Future can’t catch a break as it’s seemingly on the brink of failure again

Faraday Future’s story has been a roller-coaster. Once seen as the number one EV startup, it has since been crippled by severe financial and management problems. It seems like the startup was finally out of the woods after a large Chinese holding company promised a massive $2 billion investment in Faraday Future, but after a fallout… Continue reading Faraday Future can’t catch a break as it’s seemingly on the brink of failure again

Auto dealers see slowing sales, sparking fears that a long-expected decline is here

Suzanne Kreiter | The Boston Globe | Getty Images
Keith Monnin, CEO of Bernardi Auto Group, looks over a dealership in Framingham, MA.

A growing number of auto dealers around the country is seeing a noticeable drop in retail sales and customer traffic in showrooms, raising the possibility that a long-anticipated slowdown in auto sales has arrived.

“We are definitely seeing business pull back,” said Scott Adams, the owner of a Toyota dealership in Lee's Summit, Missouri, just outside Kansas City. “September was off some, but this month our car sales are down 12 percent and our truck sales are down 23 percent.”

CNBC breaks down the most recent news in auto stocks
2:47 PM ET Fri, 19 Oct 2018 | 01:42

Other dealers tell CNBC they saw a significant drop in sales last weekend. One dealer in metro Tampa Bay, Florida, who asked not to be identified, said sales this month are down 13 percent.

“Customer traffic has moderated,” said Mark Scarpelli, president of Raymond Chevrolet and Kia in Antioch, Illinois.

Scarpelli said sales at his dealership are “keeping pace” with last October, but he has seen customers taking longer before buying a new car or truck. “There is a little bit more of a pause because of the higher interest rates,” he said.

Auto loan interest rates have moved steadily higher as the Federal Reserve has raised rates this year. In the second quarter of this year, the average new vehicle interest rate was 5.76 percent, up from 5.2 percent at the same time in 2017, according to Experian, which tracks millions of auto loans.

How taxpayers have boosted Elon Musk and Tesla
10:06 AM ET Mon, 22 Oct 2018 | 07:43

Gary Barbera, who sells Jeep, Ram, Dodge and Chrysler models in Philadelphia, said his sales team has to “dig a little deeper” to close a sale. Still, business is up more than 6 percent this month, he said.

The pace of auto sales for October is expected to be close to 17 million vehicles, according to the auto website Edmunds.

Jeremy Acevedo, Edmunds' manager of industry analysis, said the number might not be showing signs of weakness due to auto fleet sales. If automakers increase fleet sales to corporations and government agencies, it would offset weaker retail sales through dealerships.

For more than a year, analysts have said auto sales are primed to slow down for a variety of reasons, including a surge in 3-year-old models entering the used car market. That wave of pre-owned models with relatively low mileage gives potential buyers an attractive option at a far lower price. Still, auto sales have remained robust and are on pace to top 17 million vehicles for a fourth-straight year, which would be a record for the industry.

Dave Fischer, chairman and CEO of the Suburban Collection, which has more than 50 retail stores in Michigan, California and Florida, said if sales slowing around the country, he's not seeing it.

“We will be up over last year. People are still buying,” he said.

—CNBC's Meghan Reeder contributed to this report.

WATCH:How automakers sell a $71,000 version of a $27,000 car

How automakers sell a $71,000 version of a $27,000 car
10:40 AM ET Thu, 28 June 2018 | 02:46

Lyft Welcomes Two Executives to Focus on Expanding Services to Drivers

At Lyft, we want to give drivers everything they need to succeed at their goals both on and off the road. We’re furthering that commitment by adding two seasoned executives to the Lyft family. Chris Donus and Rajiv Bhatia join us as Vice President of Express Drive and Head of Driver Product, respectively. Chris and… Continue reading Lyft Welcomes Two Executives to Focus on Expanding Services to Drivers