General Motors Q2 Earnings Report: Light-Duty Pickup Trucks, Crossovers Drive Automaker’s Growth

General Motors (GM) has released its second-quarter earnings report, showing a significant bright spot with its light-duty pickup truck sales in addition to increased growth in North American with its crossovers. The automaker reported an income of $2.4 billion for the quarter and an EBIT-adjusted of $3.0 billion.

“Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come,” Mary Barra, chairman and CEO at GM said. “We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers and shareholders.”

GM reported an EBIT-adjusted margin of 10.7 percent mostly driven by its full-size, light-duty pickup trucks. The company rolled out new Chevy Silverados and GMC Sierras in Q2, seeing double-digit growth in sales year-over-year. The company said its light-duty pickup trucks gained almost 3 percent of the retail share from Q1 to Q2.

On the heavy-duty pickup side, GM launched new models in June and increased its focus on the heavy-duty crew cab trucks. It said it expects significant growth in the segment up from its previously announced 40,000-unit additional capacity for the heavy-duty trucks at its Flint, Michigan, assembly plant.

GM said it delivered 747,000 vehicles in the U.S. for the second quarter, which was led by crossover sales. The delivery numbers set a Q2 record for the company with a 17 percent increase year-over-year. Topping the list was the Chevy Equinox and Traverse, which also set Q2 records. GM also said that every Buick crossover model was up year-over-year and the GMC Arcadia posted its best first half ever while the Cadillac XT4 lead the segment.

Also new for GM in the second quarter was the highly-anticipated 2020 Chevy Corvette Stingray C8. The midengined sports car created more than 400 jobs at the company’s Bowling Green, Kentucky, assembly plant as GM said it expects strong customer demand for the vehicle. C8s will arrive at dealers in the fourth quarter, according to the company.

International markets saw GM China selling 754,000 vehicles in China for Q2, which was about 100,000 fewer than the 2018’s second quarter. GM said market decline, segment shifts, and lower demand in the country caused the weakened numbers. The company said it also expects weak sales in China through the second half of the year with deliveries down for the full year.