Pickups drive GM's profit beat

Credit: Reuters Studio
Published on August 1, 2019 - Duration: 00:57s

Pickups drive GM's profit beat

General Motors stuck to its upbeat earnings forecast, defying a global industry slowdown with strong sales of pickup trucks in North America.

Fred Katayama reports.

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Pickups drive GM's profit beat

General Motors joined Fiat Chrysler in defying an industry slowdown, sticking to its upbeat earnings forecast for the full year.

Like its rival, GM was in the fast lane with strong sales of high-margin pickup trucks, especially those bearing its GMC nameplate.

Sport utilities like its Cadillac XT4 also did well.

Also like Fiat Chrysler , GM's growth in North America helped the largest U.S. automaker overcome its weak performance overseas.

Virtually all of the company's profit came from North America.

Its sales in China, the world's largest auto market, skidded 12%, and it warned sales there will remain weak for the rest of the year.

GM's quarterly profit rose slightly and zoomed past analysts' estimates.

That pushed its shares higher in early Thursday trading.

Automakers have been hit hard by the global sales slowdown.

GM rival Ford and Daimler, Aston Martin and Renault have ALL RECENTLY issued weak outlooks.

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