GM Defies Recall Taint as U.S. Rebound Spurs Truck Demand

General Motors Co. (GM) is shrugging off the impact of a 2.59 million small-car recall with new Chevy Silverado and GMC Sierra pickups that are luring buyers into dealerships as the weather warms and the U.S. economy rebounds.

GM sales rose 6.9 percent in April, beating the average of industry analysts surveyed by Bloomberg that projected a 5.7 percent gain. Sales of GM's redesigned full-size pickups gained 12 percent while large sport-utility vehicle deliveries increased 22 percent, the Detroit-based company said.

The year-over-year "trend in GM's total and retail sales has only improved since news of its ignition-switch recall affecting older-model cars became widely reported upon in the media -- we believe furthering our thesis that GM market share will not be materially impacted as a consequence of the issue," Ryan Brinkman, an industry analyst with JPMorgan Chase & Co., said yesterday in a note to investors.

GM's sales gain, after better than projected earnings reported last week, are a bright spot for Chief Executive Officer Mary Barra, grappling with the recalls for faulty ignition switches. Federal safety regulators, Congress and the Justice Department are investigating why it took the company more than a decade to address the defective parts.

While GM beat sales estimates in April, Ford Motor Co. (F) and Chrysler Group LLC missed analysts' estimates as industrywide sales rose 8.1 percent to 1.39 million cars and lights trucks, according to researcher Autodata Corp. The annual sales rate, adjusted for seasonal trends, climbed to 16 million from 15.2 million a year ago. That missed analysts' projections for a 16.2 million pace. Stock Gain

GM rose 1.2 percent to $34.90 yesterday, paring losses for the year to 15 percent. The Standard & Poor's 500 Index, little changed yesterday, has gained 1.9 percent this year.





Analysts surveyed by Bloomberg say GM will reach $42.50 a share in 12 months to create a 22 percent return from yesterday. This is the 26th highest projected return among S&P 500 companies, according to data compiled by Bloomberg. Among the 100 largest global auto companies, GM has the fourth lowest price-to-cash flow ratio, fifth lowest price-to-sales ratio and 35th lowest price-to-earnings ratio.

GM joined Ford, Chrysler and Toyota (7203) Motor Corp. in boosting sales of trucks in the U.S. last month. Ford, Chrysler

Ford, as it named Mark Fields its new CEO, said pickup sales gained 8 percent, while cars fell 9.1 percent. Ford's total light-vehicle deliveries fell 0.8 percent. Analysts had projected a 3.1 percent increase. Chrysler's 17 percent jump in Ram pickups and 52 percent surge in Jeep brand sport-utility vehicles weren't enough to top estimates for a 16 percent gain. A 14 percent gain at Chrysler produced its best April since 2007.

Pickup sales were helped by pent-up demand coming out of January and February when bad winter weather kept buyers away from showrooms, suggesting contractors are feeling more confident about housing starts, Mark Wakefield, leader of AlixPartners LLP's automotive practices in the Americas, said yesterday in a telephone interview.

"The cold snap recovery has quite a bit to do with it," he said. "I don't think we're seeing a mass return to the urban cowboy that we had before." Toyota's Rise

Toyota sales rose 13 percent to 199,660, matching analysts' estimates. The automaker, based in Toyota City, Japan, saw U.S. truck and car deliveries advance 17 percent and 11 percent, respectively. Sales of the full-size Tundra pickup jumped 23 percent.

"For Toyota, truck sales continue to soar," Bill Fay, Toyota division group vice president and general manager, said in a statement.

Nissan Motor Co. (7201) sales increased 18 percent, exceeding the 14 percent average of analysts' estimates. The company's car sales bucked the declining trend with a 24 percent gain as Nissan Versa deliveries jumped 46 percent. The Yokohama-based company reported mixed results on pickups: The compact Frontier was up 11 percent while the full-size Titan slid 7.9 percent.

Honda Motor Co.'s sales of Honda and Acura brand autos rose 1.1 percent last month to 132,456, the company said in separate Twitter posts. That was below an expected 3.3 percent increase.

Hyundai Motor Co. and Kia Motors Corp., affiliated South Korean automakers, reported a combined sales gain of 8 percent, topping an estimated 5.9 percent increase. Hyundai's sales grew 4.4 percent to 66,107, while Kia's jumped 13 percent to 53,676, the Seoul-based companies said in separate statements. Strategic Incentives

GM, the nation's largest automaker, reported sales of 254,076 in April. Deliveries of the Chevrolet Silverado pickup rose 8.5 percent while those of GMC Sierra trucks increased 21 percent. Both trucks were redesigned and began arriving in showrooms last year. Sales of GM's large sport-utility vehicles, including the Chevrolet Tahoe, gained 22 percent, the company said in an e-mailed statement. Deliveries of GM's Chevy Cruze small car slid 1.3 percent and the mid-size Malibu dropped 8.2 percent.

With GM's recent introduction of heavy duty and full-sized SUVs, "we believe sales of these vehicles are finally hitting their stride and we project continued sales strength and market share gains," Joseph Amaturo, an analyst with Buckingham Research Group, said in a note yesterday to investors.

GM said it used "strategic" discounts to boost sales of its Chevrolet Silverado and GMC Sierra pickups, aiming incentives on double-cabs and V-6 models where the company felt it was losing share to price competition. Incentives as a percentage of average transaction prices rose to 12.4 percent in April from 10.2 percent in the first quarter, GM said, citing data from J.D. Power & Associates. The company noted that its incentives on large SUVs and heavy duty trucks declined. Truck Prices

Higher prices on those new trucks helped GM offset losses in the first quarter from the cost of recalling 7 million vehicles, including the 2.59 million with potentially faulty ignition switches that allowed the key to slip out of the "on" position, shutting off the engine and disabling air bags. First-quarter profit fell to $213 million from $1.18 billion a year ago. North American adjusted earnings before interest and taxes fell to $557 million from $1.4 billion.

Ford reported U.S. light-vehicle sales of 210,355 last month, the Dearborn, Michigan-based automaker said in a statement. Deliveries of the Ford Focus dropped 15 percent while F-Series pickups gained 7.4 percent. Ford said it trimmed discounts on its F-Series in April by $380 from a year earlier to $3,700 a truck. Jeep SUVs

Deliveries of Chrysler's outgoing 200 sedan plunged 66 percent, as the company's car sales dropped 26 percent. Chrysler's results were hurt by a 26 percent drop for the compact Dart. Ram pickup sales totaled 36,674.

"Strong consumer demand for our Jeep sport-utility vehicles and Ram pickup trucks continued in April," Reid Bigland, Chrysler's U.S. sales chief, said in the statement.

Dodge brand added 50 sales to 53,463 in April as gains by the Grand Caravan minivan and Journey SUV made up for declines for the Dart and outgoing Avenger. Fiat brand sales increased 10 percent to 4,298 deliveries.

The latest consumer confidence survey, which rose in April to a nine-month high, showed Americans are growing more upbeat about the economy as the labor market gains traction. Consumers were more optimistic about current conditions than at any time since July 2007 as smaller ranks of the unemployed, near-record stock prices and higher property values help bolster household finances.

The Thomson Reuters/University of Michigan final index of sentiment increased to 84.1 from a four-month low of 80 in March. The median projection in a Bloomberg survey of economists called for 83 after a preliminary April reading of 82.6.

To contact the reporters on this story: Mark Clothier in Southfield, Michigan, at mclothier@bloomberg.net; Tim Higgins in Southfield, Michigan, at thiggins21@bloomberg.net

To contact the editors responsible for this story: Jamie Butters at jbutters@bloomberg.net Niamh Ring

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150+ file suit over Holland Twp. truck stop

150+ file suit over Holland Twp. truck stop

HOLLAND TOWNSHIP, Mich. (WZZM) -- More than 150 local residents have filed a lawsuit against Holland Township over plan to build a new truck stop. The group of citizens called One by One, claims the truck stop was approved at the intersection of Black River Road and Adams Street without enough feedback from the public.

The new truck stop is just around the corner, but residents like Debbi Hildenbrand are trying to put the brakes on a plan to build it. "For me, the immediate concerns were safety, were traffic."

Hildenbrand is with the citizens group One by One, which has raised about $10,000 to appeal the decision by Holland Township. More than 150 plaintiffs are named in the lawsuit against the township. Hildenbrand says they're trying to protect their residential area.

"Schools, churches, daycare right up the road, and it just didn't seem like the right fit for a truck stop," she said,

Truck traffic and safety concerns recently took center stage after a local teacher was killed at the Tulip City Truck stop in December 2013.

"It definitely played into it, it's unfortunate for those families they've had to go through that," said Hildenbrand.

Right now, the plan is for the company, Loves Travel Stops, to run the truck stop after it's built next spring.

Residents say the main basis for the lawsuit is how the process was handled. They say in February only people within 300 feet of the property knew of the truck stop proposal, and then in March when a final decision was made, no one from the public was allowed to speak at the township meeting.

"We would like a judge to look it over and make sure they took every step," said Hildenbrand.

"I would have not ever expected that this little town would have a large truck plaza of 13 acres," added Jennifer Buitenhuis

WZZM 13 asked Hildenbrand what is wrong with having a truck stop. "I definitely want people to understand that our One by One group is not against truckers. We don't think truck stops are bad, we think this location is bad for a truck stop."

One by One hopes to raise between $30,000 and $50,000 so a court can decide if the plan moves forward.

WZZM 13 did speak with a manager for development at Loves Travel Stops. He says the new truck stop will add 60 new jobs. The company will be investing $8 million to $10 million in the local economy. He also wants to make it clear that the location will not only be a truck stop, but also have two restaurants and a convenience store.

WZZM also reached out to township officials, but they say they don't comment on pending lawsuits.

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Brisbane traffic stalls after truck crash on Gateway Motorway

Queensland

Southbound drivers on the Gateway Motorway are experiencing huge delays after a garbage truck jack-knifed at an on-ramp in Banyo, causing a logjam of about seven kilometres.

Police said the truck came to grief at the Gateway Motorway on-ramp, at Nudgee Road opposite a service station, blocking both southbound lanes.

Braun and Deagan Deviation Roads are completely blocked with no access to the motorway.

An Australian Traffic Network spokesman said rubbish from the truck was all over the road, and urged drivers to avoid travelling on the Gateway if possible.

Initial reports suggest the truck hit a guard rail and lost control.

It is not known if there are any injuries.

The accident is likely to cause problems for people catching morning flights at Brisbane Airport.

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Finally there's a food truck that sells marijuana

In these pages we've discussed the merits of buying marijuana from vending machines and smoking cannabis via professional, machine-rolled cigarettes. But I'm not sure any of that prepared us for a food truck that only sells infused edibles and foods.

Ready or not here is your introduction to the Samich Truck, which debuted on April 19-20 at the U.S. Cannabis Cup in Denver. The 40-foot school bus-turned-food truck is the brainchild of the team at Seattle-based magicalbutter.com - an automatic botanical extractor many use to easily make cannabutter and canna-oil. The team envisions an entire fleet of these infused-food trucks along with a permanent beachside location in Seattle and, eventually, California and Florida. Make your own at home: Visit our recipe archives for infused entrees, desserts and more

Wondering what's on the menu? You're not alone. Some items include the Samich (sunbutter and jelly), Banh Mi (Vietnamese-style pork sandwich), the Bronco (BBQ pulled pork sandwich), PhaReal Cheese Samich and Kushie Tomato Soup. (Never missing an opportunity to cross promote, magicalbutter.com will also sell their MB2 machines from the truck at a discounted price to patrons who also place a food order.)

We spoke with magicalbutter.com CEO Garyn Angel this morning about how much his infused entrees will cost, his experience in Denver over 4/20 weekend and his theory that people drink less alcohol when they're using marijuana.

The Cannabist: A food truck selling only weed-infused edibles? Tell me more.

Angel: The idea with the food truck: We don't just make butters and oils and tinctures, we make five-star foods and decadent meals with cannabis. But that got us thinking: How do we bring that to people and show them there's more than brownies and cookies? We make them a Caprese salad with a delicious dressing and educate people on how to cook with cannabis, especially medical patients.

The Cannabist: So you're a fan of medicating via edibles as opposed to smoking or vaporizing?

Angel: I believe that eating cannabis is the most efficient treatment option. And we want to teach people how to eat the treat, and that's the plan. Cannabis-themed dinners: "I can taste every ingredient" indeed

The Cannabist: So you gave away a ton of infused pulled pork sandwiches and other goodies at the Cannabis Cup a few weeks back. Were you happy with the reception?

Angel: We have pretty good brand recognition and a good Facebook crowd, and the people who came around our way had an idea of what we might be up to ... I just wanted to prove the business model. That's what we utilized the event for, to see that people had an interest in it. I stood back and watched at the Cannabis Cup, and I could tell it was a good idea. We're trying to build this into a franchise.

The Cannabist: So you want a fleet of these trucks?

Angel: Yes, I like the concept that we have now: The buses as the kitchens. But an open-air restaurant on the beach serving cannabis-infused entrees - that's our vision. It has its own feel, and there is a creative appeal to it: Beach-side dining. And as long as the food is absolutely spectacular, I'd rather eat in an open-air restaurant on a beach than anywhere else. It feels right, and laid back, too. "Hey, lets have a good time and go out for a nice bite to eat. Instead of having 36 drinks tonight let's have a nice cannabis-infused meal."

The Cannabist: Many argue that using marijuana leads to a significant decrease in alcohol consumption. How do you feel about that?

Angel: Cannabis leads to a decrease in drinking. The reason why people drink is for the relaxation, so if you can get relaxed without drinking and you know it's healthier, that's what people are going to do. You save a lot of calories, too. And I'd rather eat some good calories than drink some bad ones. Read more about these marijuana-infused food trucks ...



Ricardo Baca is the editor of The Cannabist. After 12 years as The Denver Post's music critic and a couple more as the paper's entertainment editor, he was...

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General Motors Pickup Truck Sales Climb 12 Percent, Market Share Climbs 3 ...

General Motors sales in April proved unaffected by the negative press surrounding the company's widely publicized safety recall after the company saw sales of both the Chevrolet Silverado and GMC Sierra rise significantly throughout the month.

According to Automotive News, Chevrolet delivered 42,755 units in April, an increase of about 9 percent from March and about 6,000 more units than Ram sold. In March, Ram sales surpassed monthly Silverado sales for the first time in 15 years. GMC Sierra sales rose 21 percent to 17,246 units, while sales of Ford's outgoing F-150 model rose 7 percent.

GM sales have remained mostly stagnant throughout the year, currently sitting at 903,713 units. Weak sales of pickups and SUVs have been a major contributing factor, which are still off by 5 percent despite the healthy jump in April.

"Retail demand was steady in April, and truck sales and transaction prices were especially strong," said Kurt McNeil, GM's U.S. vice president of sales operations.

Average industry truck incentives fell $680 for the month, reports. Incentives on GM trucks rose 16% for the month, while Ram incentives dropped 22% and Ford truck incentives fell 9%.

GM said it gained more than 3 percentage points of retail market share in the full-sized pickup truck segment in April, bringing its share to 35 percent.



- Sam McEachern

Sam is GM Authority's staff writer providing coverage of General Motors news.

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Auto Sales Warm Up in April on Truck, SUV Demand

Auto sales picked up the pace in April, as drivers returned to showrooms looking for new trucks and sport-utility vehicles after a rough winter.

The auto industry has benefited from a rebound in the housing and energy sectors, in addition to low interest rates. Sales raced higher in 2013 but got off to a slow start this year amid record snowfall in many parts of the country.

Analysts expected the industry as a whole to report stronger sales for the latest month, given pent-up demand from consumers who put off buying a car until the spring. Car information provider Kelley Blue Book also said transaction prices for new vehicles ticked 1.2% higher to an average of $32,141.

According to Autodata, the seasonally adjusted annual rate (SAAR) for sales of light vehicles hit 16.04 million in April compared to 15.19 million a year earlier.

However, Ford ( F) revealed a slight drop in April sales amid weaker demand for passenger cars. The nation's No. 2 automaker sold 211,126 vehicles last month, down 0.7% compared to the same month a year earlier.

Kelley Blue Book was looking for a 0.9% decline in Ford sales. Edmunds.com anticipated a 4.6% increase.

John Felice, Ford's vice president of U.S. marketing, sales and service, said the company saw considerable strength in F-series pickup trucks and its Explorer SUV.

"Overall, industry sales continued the rebound from January and February and are on a path of steady growth," he added.

Ford sold a total of 63,387 F-series trucks last month, marking their best April since 2006. Truck demand and a 17% increase in Explorer sales helped offset weakness in car sales, as the namesake Ford brand recorded just a slight drop year-over-year.

The company's Lincoln luxury brand posted a sales drop of 11%, with Ford citing a strong year-ago comparison. Lincoln sales are up 21% through the first fourth months of the year.

While Ford truck sales grew 8% overall, car sales fell 9.1% on weaker demand for the Fiesta, Focus and Fusion.

That trend was seen across much of the industry last month. Jack Nerad, executive editorial director and senior analyst for Kelley Blue Book, said American automakers have made significant inroads to improve their car portfolios, but a winter full of snowstorms likely made trucks and SUVs "look a lot more appealing" to buyers.

Ford said retail sales, or vehicles sold to consumers, checked in at 141,950 units, off about 1% versus April 2013. The latest month had 26 selling days, one more than last year.

Also on Thursday, Dearborn, Mich.-based Ford announced chief operating officer Mark Fields will succeed Alan Mulally, who plans to retire on July 1, as president and CEO. The transition will occur earlier than expected. Mulally previously said he would remain in his current roles until at least the end of 2014.

Shares of Ford fell 1.4% to $15.93 in recent trading.

General Motors ( GM), the largest of the Big Three automakers, reported a 6.9% increase in its April sales on strong demand for the company's new pickup trucks.

GM sold 254,076 new vehicles in April, beating estimates from both Kelley Blue Book and Edmunds. Chevrolet sales rose 5.3%, while GMC was up 13%. Sales grew 12% and 5.1% for Buick and Cadillac, respectively.

The redesigned Chevrolet Silverado and GMC Sierra performed well during the month, and GM stressed that transaction prices held steady. The company has said it will continue to control incentives for its new trucks, sacrificing higher sales figures in exchange for wider margins.

Sales of the Silverado jumped 8.5% to 42,755. GM delivered 17,246 Sierra pickups, a 21.4% gain.

GM also said it expects to gain between two and three points of retail market share in the large pickup segment compared to March 2014.

The company's overall retail sales improved 8%, while fleet sales were up 5%.

"Retail demand was steady in April, and truck sales and transaction prices were especially strong," said Kurt McNeil, U.S. vice president of sales operations at GM. "As we expected, the economy continues to strengthen."

GM's results seemingly indicate that consumers are unfazed by its ignition-switch recall and several others this year. The company has come under scrutiny for a years-long delay in recalling about 2.6 million vehicles worldwide to fix defective ignition switches, a problem that has been linked to 13 deaths.

Nerad said the sales figures and Kelley Blue Book's market research indicates the recall isn't affecting car shoppers.

"We thought that from the beginning. We didn't think this would have the impact that Toyota's sudden-acceleration problems had on its sales," Nerad said, noting how the cars included in GM's ignition-switch recall are all defunct models.

GM shares raced 1.3% higher to $34.94 on the April sales report.

Chrysler Group outpaced its U.S. rivals with a 14% increase in April sales, as the automaker continues to benefit from sales of Ram trucks and the recently launched Jeep Cherokee.

The company recorded sales of 178,652 vehicles, thanks to truck sales that soared 34%. Car sales tumbled 26%.

Chrysler topped a projection from Edmunds for 12.3% growth year-over-year. Kelley Blue Book anticipated a higher gain of 18.1%.

Strong demand for Jeep and Ram vehicles again lifted Chrysler's monthly sales report. The Jeep brand posted a 52% increase in sales, with sales of the Cherokee hitting 15,007 units. The SUV's launch was delayed last year but began arriving at dealers in late October.

The Ram Truck brand saw sales climb 22%. Chrysler said 36,674 pickups were delivered last month. The namesake Chrysler brand suffered a 21% decline in sales, while Dodge sales were flat. The company also saw a 10% increase in Fiat sales.

Chrysler is in the process of completing its merger with Italian automaker Fiat. The combination into Fiat Chrysler Automobiles is expected to be done by the end of the year. CEO Sergio Marchionne said the new company could begin trading in New York by Oct. 1.

Toyota's ( TM) April sales jumped 13.3% to 199,660 vehicles, as sales of the Tundra pickup truck jumped 24%. Lexus saw a 23.1% improvement in April sales volume, while the Toyota division recorded 11.7% growth.

U.S. shares of Toyota rallied 1.4% to $109.80.

Honda ( HMC) reported sales of 132,456 units, or 1.1% more than the year-ago month. The Acura luxury brand outpaced Honda with a gain of 1.6% on strong demand for light trucks. The company's namesake vehicles posted a 1.1% sales increase.

"After a few truly chilling winter months, it's great to see the warmer spring weather begin to liberate our customers and spark record sales of CR-V and solid sales results across the lineup," said Jeff Conrad, the Honda division's senior vice president and general manager.

Honda shares were up 1.2% at $33.69 on Thursday afternoon.

Nissan Group, which includes the Infiniti luxury brand, said its monthly sales flew 18.3% higher to 103,934.

Fellow Japanese manufacturer Hyundai Motor sold 119,783 vehicles in the U.S., up 8% year-over-year, amid a 12.9% increase in sales for its Kia brand. The results beat estimates.

Sales of Volkswagen and Audi vehicles fell about 0.7% to a combined 46,484, missing expectations. Follow Matthew Rocco on Twitter @MatthewRocco

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Truck tips on Route 59 in Nanuet, spilling 1000 gallons of diesel

Route 59 is closed at College Avenue after a home heating oil truck overturned and spilled at least half its contents in the busy intersection.

NANUET Route 59 is closed at College Avenue after a home heating oil truck overturned and spilled at least half its contents in the busy intersection.

The accident occurred shortly before 1 p.m. Police and firefighters are on the scene. Firefighters have laid out absorbent booming to stop the oil's flow and have shoveled soil around storm drains to prevent it from entering.

The smell of oil is heavey in the air. Workers and other bystanders are watching the cleanup efforts.



An oil truck overturned on Route 59 in Nanuet, spilling nearly half its contents and closing the busy intersection at College Avenue. Thane Grauel

The truck had been traveling on Route 59 and was attempting to turn left at the time it tipped over.

It's a rough day for motorists up and down Route 59, which is also closed for a stretch due to flooding near the Palisades Center.

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