Latest news with #ChevroletEquinox
Chicago Tribune
12 hours ago
- Chicago Tribune
Chicago man charged after crash into Indiana highway wall
A Chicago man was charged Tuesday with drunkenly crashing into a highway wall, records allege. Kyle N. Davis, 32, is charged with causing serious bodily injury when operating a vehicle while intoxicated and two misdemeanors. He is in custody, held on a $2,000 cash bond. Indiana State Police responded at 12:22 a.m. July 21 to the .02-mile marker on I-80 west in Hammond, just inside the state line. Davis initially told police he swerved to avoid someone in front of him and hit the wall. Then, as cops went to get the woman's ID, he changed his story, saying they had been at the casino for hours and he lost control of his white Chevrolet Equinox. 'You can test me right now, I ain't even drunk,' he said. He told police he had a busted lip and an injured leg. His female passenger was taken to the hospital with a cut lip, head pain and 'memory issues.' An affidavit shows Davis had a no contact order that barred him from seeing the woman. He told police he thought it just prevented them from fighting.
Yahoo
14 hours ago
- Automotive
- Yahoo
Morgan Stanley's blunt challenge to GM CEO Mary Barra: ‘How does GM expect to be profitable with EVs when players like Tesla apparently cannot?'
Wall Street was unimpressed by General Motors' Q2 earnings call. On the call, a Morgan Stanley analyst asked CEO Mary Barra: 'How does GM expect to be profitable with EVs when players like Tesla apparently cannot?' Separately, Piper Sandler told clients that GM stock won't break free of its bargain-basement multiple of five times next year's forecast earnings if management is only tinkering around on the edges. The company needs a thesis-changing strategy like humanoid robots, it said. General Motors and its legacy auto industry peers need a bold strategy for the future if they ever want investors to rethink their growth prospects, investment bank Piper Sandler warned on Tuesday. Otherwise their collective tinkering around on the edges with cost cuts here and inventory changes there amount to little more than rearranging the deck chairs on the Titanic, the bank implied. And Morgan Stanley analyst Adam Jonas had a blunt statement for CEO Mary Barra, comparing her company unfavorably with Tesla in the Q&A section of the earnings call. Shares in GM tumbled 8% after second-quarter adjusted net profit fell by a sixth, owing in part to a $1.1 billion hit from the Trump administration's tariffs. It comes after fellow Detroit carmaker Stellantis, the parent of Jeep and Ram, preannounced results for the first six months that revealed it swung to a €2.3 billion ($2.7 billion) loss from a net profit of €5.6 billion the prior year. A major uncertainty clouding the outlook for GM's North American profits moving forward remains the impact of import duties. As a result, on Tuesday, Piper Sandler warned clients it's possible that GM could end up closer to the $8.25 in adjusted earnings per share for this year rather than the upper bound of $10 in its forecast range. 'But to us, these aren't thesis-defining issues. More problematic, in our view, is that the call focused almost entirely on tactical or cyclical topics,' it wrote in a research note. Only worth paying five times next year's earnings for GM, bank argues The bank gave as an example issues like incentive spending, inventory levels, and cost offsets with regard to tariffs to name just one example. GM imports the popular Chevrolet Equinox and Cadillac Optiq EVs from Mexico. Both saw a surge in Q2 demand potentially reflecting pull-forward effects as dealers stocked up on inventory before the 25% auto sector tariffs hit, and as customers bought EVs before the Sept. 30 deadline for the end of the federal EV credit, discontinued by the Trump administration. 'In our view, if GM and other traditional automakers want to emerge from their multiyear funk, they don't need smart tactics,' Piper Sandler continued, 'they need bold strategic changes.' Otherwise the bank will continue to view GM share based on the same $48 price target that represents five times next year's forecast earnings. Shares in GM first listed on the New York Stock Exchange back in November 2010. At the time, the company boasted what it called a 'fortress balance sheet' free of legacy risks like pension and health care obligations for staff and retirees that helped plunge it into bankruptcy the year prior. Yet investors that bought in at the IPO price of $33 have not been rewarded relative to the broader equity market. The stock has averaged just a 2.6% annual compound return in the subsequent 15 years versus 11.8% with the S&P 500. 'How does GM expect to be profitable with EVs when players like Tesla apparently cannot?' By comparison, Piper Sandler views Tesla, a $1 trillion–plus megacap company in the Magnificent Seven stock group, as being fairly valued at 140 times its estimated 2026 earnings. A major reason for that lofty multiple is Tesla's efforts in the area of artificial intelligence and humanoid robotics. In a research note published this weekend, Piper Sandler argued a further geographic expansion of the Austin area serviced by Tesla's new AI-powered robotaxi fleet (generally estimated to still include only a dozen cars) was likely favorable enough to overshadow any negative revisions to forecast earnings. CEO Elon Musk's company is due to report quarterly earnings after the close of markets on Wednesday. GM did not respond to a Fortune request for comment made outside normal working hours. But the carmaker's CEO, Mary Barra, faced scrutiny from analysts during her Q2 conference call, with another Tesla bull asking, where are its humanoid robots? 'Elon seems to be also exiting the auto industry, clearly pulling capital out of the business and doubling down on AI, autonomy, and robotaxis,' Morgan Stanley analyst Adam Jonas said during the Tuesday investor call. 'So how does GM expect to be profitable with EVs when players like Tesla apparently cannot?' Barra replied there were partnerships 'we're looking at' in the field of automation, but that when it comes to the subject, GM is mainly interested in improving efficiency at its automobile factories. 'Overall, we're focused on what's going to drive manufacturing optimization,' GM's CEO answered. This story was originally featured on
Boston Globe
a day ago
- Automotive
- Boston Globe
GM profit shrinks on billion-dollar tariff hit
GM's profit for the quarter was $1.9 billion, the company said, down from $2.9 billion in the same quarter last year. Sales fell 2%, to $47 billion. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The company manufactures cars in Canada, Mexico and South Korea that it exports to the United States. Those vehicles have been subject to tariffs of up to 25%. Tariffs will cost the company as much as $5 billion for the full year, although GM said it hopes to offset about a third of that amount by cutting costs and moving some manufacturing to the United States. Advertisement GM CEO Mary Barra said in a letter to shareholders that the company is investing $4 billion to increase production in the United States of pickups and sport utility vehicles that would be less susceptible to tariffs. 'We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,' Barra said. Advertisement Sales of electric vehicles more than doubled, GM said, because of new models like a battery-powered version of the Chevrolet Equinox, an SUV that has a starting price of around $35,000. GM said it has 16% of the electric vehicle market in the United States, second only to Tesla. At the same time, GM is taking advantage of Republican legislation that gutted enforcement of clean air and fuel economy standards. The company said it would invest $900 million to manufacture a new V-8 engine in Tonawanda, New York, north of Buffalo. The gasoline-powered engine will be used in large pickups and SUVs. 'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production,' Barra said. But she added that vehicles with internal combustion engines now have 'a longer runway.' In a hopeful sign for GM, the company said it increased sales in China during quarter to $6.1 billion from $4.7 billion a year ago. Most Western automakers have struggled to compete in China with domestic companies like BYD, which are selling high-quality cars at low prices and have taken the lead in electric vehicle technology. GM sells Cadillac, Buick and Chevrolet vehicles in China through a joint venture with SAIC Motor. Half the cars sold by the partnership during the quarter were electric vehicles or hybrids, GM said. GM shares were down about 7% Tuesday morning. This article originally appeared in
Int'l Business Times
2 days ago
- Automotive
- Int'l Business Times
General Motors Profits Fall On Tariffs
General Motors reported Tuesday that second-quarter profits tumbled by more than a third due to tariffs as it confirmed its full-year forecast. GM's results topped expectations, but shares fell as the automaker projected weaker profitability in the second half of 2025. The Detroit automaker, which has adjusted billions of dollars in investment in light of shifting US trade and environmental policies, said it benefited from continued solid pricing in its home market. Profits overall fell 35.4 percent to $1.9 billion year-on-year, with a $1.1 billion hit from tariffs accounting for much of the drop. Revenues dipped 1.8 percent to $47.1 billion, in spite of higher auto sales globally compared with the year-ago period. GM was among the carmakers that benefited from a surge in demand this spring from US consumers who wanted to beat US tariffs. GM pointed to sales growth in North America where new and revamped trucks and sport utility vehicles sold briskly. The United States imposed 25 percent tariffs on imported finished cars in early April, a move that affected major GM manufacturing operations in Mexico, Canada and South Korea. Auto companies have also been buffeted by tariffs on imported steel and aluminum and auto parts. GM reaffirmed its forecast of an overall hit of $4-$5 billion from tariffs in 2025 as it continues to import from those three countries "to avoid interruptions for our customers and dealers," Chief Financial Officer Paul Jacobson told analysts. "Over time we remain confident that our total tariff expense will come down as bilateral trade deals emerge and our sourcing and production adjustments are implemented," Jacobson said. Chief Executive Mary Barra declined to predict "a worst-case" tariff scenario, but said the outcome could potentially be better than the current policies on which forecasts are based. The Detroit-based company's outlook for a weaker second half of 2025 reflects "seasonally lower" volumes, increased spending on vehicle launches and the presence of two quarters with a tariff hit, compared to just one, the company said in a slide presentation. GM expects annual operating income of between $10 billion and $12.5 billion after notching $6.5 billion in the first half of the year. GM expects to mitigate "at least" 30 percent of the tariff hit through "manufacturing adjustments, targeted cost initiatives and consistent pricing," according to a slide. In June, GM announced $4 billion over two years to expand production of plants in Michigan, Kansas and Tennessee, making use of unused capacity in its home market as President Donald Trump's tariffs penalize imports of finished vehicles. The June announcement included steps to produce in the United States Chevrolet Equinox and Chevrolet Blazer, two vehicles which are currently assembled in Mexico. GM has so far not shifted production from South Korea, home to production for the Chevrolet Trax, a popular compact SUV that is priced affordably. President Donald Trump has set an August 1 deadline to reach broad trade deals with numerous countries, including South Korea, which faces a broad-based 25 percent tariff if there is no deal. Barra told analysts the company's South Korea operation is one "we've had for a long time that's very efficient and high quality," adding that the company would avoid long-term decisions until it knows the outcome of talks between Washington and South Korea. As GM has shifted production to the United States, it has also ramped up investments in internal combustion engine vehicles (ICE) in light of slowing growth in electric vehicles. Those dynamics will be compounded by the Trump's recent legislation to phase out tax credits for EVs after September. Recent GM investments will boost GM ability to produce either EVs or ICE vehicles at plants depending on demand, Jacobson said. "That flexibility is going to be important for us as we go through the next several years," Jacobson said. Shares of GM fell 7.1 percent in morning trading.
Yahoo
15-07-2025
- Automotive
- Yahoo
Used cars under $20K have almost vanished from the market: Here's what's behind the surge
Before the COVID-19 pandemic, more than half the used cars for sale in the nation were 3-year-old vehicles priced for $20,000 or less. Today, those same type of vehicles comprise only 11% of used cars. In fact, most shoppers who are in the market for a used vehicle would be hard pressed to find a 3-year-old model below even $30,000, forget finding one for $20,000. According to a new study from research website called: "The sub-$20,000 used car is almost gone," the average list price for a used 3-year-old vehicle is now $32,635, that's $9,476 more than it was six years ago. "There's very little negotiation going on for used cars because demand is so high," said Karl Brauer, executive analyst with which is based in Woburn, Massachusetts. "The price of used cars was dropping for the last two years, not dramatically, but going down a little bit every month. The last three months it's gone up again.' In February, the average list price for a 1- to-5-year-old used car was $31,257, up 1% from the year-ago period. In June, it was up to $32,437, a 4.8% bump from a year ago June, Brauer said. Of course that's still cheaper than buying a new car. According to the average manufacturer's suggested retail price in June was $50,523, but the average transaction price — which is what a customer pays for the car — was $48,261. More: Car buyers set a record with more than $1,000-a-month car payments in Q2 'Who knows what will happen in July. Maybe the trend will stop?' Brauer said of used car prices climbing. Metro Detroit reflects what's happening nationally. Brauer said in 2019, 52.2% of 3-year-old used car inventory in the Motor City was priced $20,000 or less. Today, only 13% of the used car inventory in metro Detroit consists of 3-year-old cars priced for $20,000 or less. Brauer told the Free Press his company conducted the study in mid-June. It analyzed data on 2.6 million 3-year-old cars. They focused on 3-year-old cars because those are in the "heart of the age group in the used market" which are 1 to 5 years old, he said. The study showed that the best-selling 3-year-old used models that are virtually no longer available for under $20,000 include the Chevrolet Equinox, Honda Civic, Kia Sportage, Nissan Rogue, Toyota Camry, and Toyota Corolla. For example, Brauer said in 2019, 97.6% of 3-year-old Honda Civic cars could be bought for $20,000. Today, 5.7% of 3-year-old Honda Civic's are available at that price range at $20,000. 'That's 94.1% drop off," Brauer said. "The Toyota Corolla, 99.9% were available to a $20,000 buyer in 2019 and now its 62.9% so they've lost about 37%. Chevy Equinox: 88.1% were available in 2019 for a $20,000 buyer and now 22.3% for a $20,000 buyer.' The study found that passenger cars saw the biggest price increase since 2019, up 48.7%. Prices for used pickups rose 28.8% and used SUVs prices are up 15.4%. Here's how that translates to dollars: Passenger cars: The average 2019 list price: $19,734. Average list price today: $29,343. SUVs: The 2019 average list price: $31,649. Average list price today: $36,509. Pickups: The 2019 average list price: $31,627. Average list price today: $40,731. All vehicles types combined: The 2019 average list price: $23,159. Average list price today: $32,635. The dramatic shift in used vehicle market pricing can be attributed to a few things, Brauer said. First there is inflation, which the nation saw rise after the COVID pandemic. But a $9,500 average price boost can't all be due to inflation, Brauer said. He blames it more on the restricted new-vehicle production in the second half of 2020 as automakers idled assembly plants because of the pandemic. Even though they were back online in a matter of weeks, it takes time to get the suppliers and production back to full capacity. When they finally did, many automakers were then hit with the semiconductor shortage in 2021 that hindered new vehicle production again. "So you had a huge hit for new car production from mid-2020 to 2022," Brauer said. "We're now in 2025 and the cars that would be 3 years old would have been built around 2021 to 2022 and they are not there in terms of the volume the used market needs. It is because the supply of new cars in three-plus years ago are restricted." On top of that, prices have systematically been pushed higher by demand as a result of the pandemic, which saw people move from urban to suburban areas when they no longer had to come into an office. With no public transportation in surburban areas, those people now need to buy cars. "So right when you had new car production restrictions, you had new car demand go up ... and this is three or four years ago," Brauer said. "That pushed up prices of new cars and pushed people into the used market, which pushed up the prices of used cars." To add to the lack of available late-model used cars, he said, the people who leased cars three to five years ago, came off those leases and saw the prices of new and used cars and realized buying out their lease was the cheapest way to get another vehicle. So those leased vehicles are not going back into the used market, he said. 'So all these things, almost every variable that could or would affect used car pricing, has done so in a bad way," Brauer said. "That's made them more expensive.' So where does this leave used-vehicle buyers? "They have to buy older cars with higher mileage," Brauer said. "When you look at what's selling, for $20,000, it used to be a 3-year-old car and it had like 32,000 miles on it. Now, $20,000 buys you a 6-year-old car with 71,000 miles on it.' The good news is cars are built better so the older used models with higher mileage will last longer, he said. "If you're forced to buy an older, higher mileage car, thankfully older cars are better than they used to be," Brauer said. "I used to consider 100,000 miles as: 'That's disposable.' That's not true anymore. You can get to 200,000 to 250,000 miles fairly easily.' Brauer offers the following tips for used-car buyers: Research the market value. Go to or other sites such as Edmunds or Kelley Blue Book and put in the VIN number of the vehicle you're interested in to find out the price you should pay. Be flexible: If you're open to a variety of brands and models, that will help you find something in your price range. 'Most things are expensive," Brauer said. "But there are pockets: models, makes and parts of the country, were things are less expensive.' Get a pre-purchase inspection: If it's a private sale, pay $200 to have a professional mechanic inspect the used car. Demand a print out of the CarFax: At a dealership, insist on seeing a printed CarFax report on the car. Be willing to go outside your home market to find a good deal. 'Let's say you're in Detroit and there's a car in Iowa you want. Let's say it would take you 12 hours to go get the car," Brauer said. "Well, if you're saving $1,200 on price of the car, you're getting paid $100 an hour to go get it, so that's a good deal.' If you have to take a bus or a flight it might not be a big savings, he said. But Brauer is a big believer in expanding your radius in where you're willing to get a car to save a few bucks. 'Sometimes a dealer will ship it and that can be the most economical," Brauer said. "It might cost you $800 to ship it, but if you're saving $2,400 on the price, then you're still getting a $1,600 savings.' Brauer said it is possible for prices to reverse, but unlikely unless there is a "substantial and unwelcomed turmoil" in the economy. The average used-vehicle prices had stabilized over the last year. But when President Donald Trump applied 25% tariffs to all imported vehicles and car parts this spring, buyers flooded the market to buy new and used cars on fears the tariffs would inflate prices. That sudden rush of demand with limited inventory actually caused prices to rise, Brauer said. "We've stabilized. But I think it's unlikely we'll see 1- to- 5-year-old vehicles available for around $20,000 like we did before the pandemic," Brauer said. "I don't think that's going to come back. We'll see ongoing stabilization, but no retraction in pricing." More: Ford CEO Jim Farley doubles down on dealerships: 'That's the secret sauce' More: Ford's latest sale may be just the start in a summer of car-buying deals, experts say Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Used cars under $20K nearly vanished from market: What's behind it Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
