General Motors blows past Wall Street profit forecasts

Factory sees U.S. auto unit return to the black as it posts earnings far better than forecasts. General Motors reported second-quarter earnings that were much better than expected as its U.S. auto operations returned to the black after more than two years of losses, according to a report on CNNMoney.com. The automaker earned $1.4 billion, excluding special items, compared with $1.2 billion on that basis a year earlier. Special charges in the period, including GM's support of the bankruptcy and reorganization of its former parts unit Delphi, along with restructuring of its own North American operations, came to $520 million. Including those charges, the company had net income of $891 million, which was a big improvement from the net loss of $3.4 billion a year earlier. The company's core North American auto unit had adjusted net income from continuing operations of $78 million in the quarter, excluding items, its first profit since the end of 2004. The unit had a loss of $94 million on that basis in the year-earlier period. GM's overseas auto operations also reported improved results, giving it global automotive earnings of $764 million excluding items, up from $367 million it earned on that basis a year earlier. Operations in each of its three overseas regions - Europe, Asia Pacific and Latin America, Africa and the Middle East - all posted improved profits. The strong overseas sales helped lift automotive revenue to $45.9 billion from $44.8 billion a year earlier. First Call's forecast was for auto revenue of only $44.5 billion in the period. Total revenue came to $46.8 billion, down from $53.9 billion in the year-earlier period, which still included revenue from GMAC.

Chrysler to Offer Lifetime Powertrain Warranty

Chrysler Group said Thursday that it would begin offering a lifetime powertrain warranty on almost all of its new vehicles to increase sales and address a longtime concern of dealers. The warranty covers the engine, transmission and drive systems on Chrysler, Jeep and Dodge models for as long as a first-time owner drives the vehicle. It replaces the automaker's current three-year, 36,000-mile warranty. The extended warranty, not transferable if a vehicle is sold, was being offered as of Thursday. Chrysler's North American sales chief, Steven Landry, said the company's consumer research showed that a larger share of new-car shoppers would consider buying one of its vehicles if offered the new warranty. The extended warranty answers a call from Chrysler's dealers, who pressed for more effective ads and improved inventory management by the automaker after unsold vehicles piled up on lots last year, Landry said. Chrysler and other U.S. automakers have said that improved quality has not been fully recognized by American consumers. It joins larger competitors in offering more generous warranties to raise consumer confidence.

Car Dealer Accused of Killing 2 Workers

A financially strapped owner of a car dealership told authorities he was under stress when he killed two employees because they kept asking for pay raises, police said Tuesday. Rolandas Milinavicius was charged in the shooting deaths of Inga Contreras, 25, and Martynas Simokaitis, 28. All three are from the eastern European nation of Lithuania but had been living in Atlanta, authorities said. Milinavicius, who was having financial problems, told police he shot the two Thursday after they kept asking for more pay, said police in East Point, which is just outside Atlanta. Milinavicius, 38, turned himself in two days after the shootings and confessed to the killings, telling them he was under a lot of stress, East Point police Capt. Russell Popham said. "As I understand, the employees were not really happy about the pay, and they had questioned him about it over the course of time," Popham said. "That morning he said he just snapped." Milinavicius, who had been living in Alpharetta, started RM Auto International two years ago, hoping to meet the demand for American cars in Lithuania. He began shipping cars and later hired the two victims as his only employees. “It doesn't make any sense," the cousin, Jaunius Simokaitis, of Fayetteville, said Monday. "If he was having money problems, these two would have been the ones to help him get out of debt. They would have helped him make that money."

Canadian Motorsport Hall of Fame to hold "Celebration of Speed", Aug 12 and 13

The Canadian Motorsport Hall of Fame is presenting a "Celebration of Speed", starting with a dinner and ending with a day at the track, on August 12th and 13th in Ontario. The two-day event starts with a dinner on the 12th at the Sheraton Parkway Hotel in Richmond Hill, featuring the book launch of "Crash Test - My Brother's Accident and the Race of Our Lives" by Chris Bye. Tickets are $80 per person. On August 13, the Celebration of Speed continues with a track day at Mosport International Raceway, with race and street cars welcome. Many current and former drivers will be on hand to provide advice, and perhaps a ride-along for a lap. Cost is $375 per entrant. All proceeds from the dinner and track day go to the Canadian Motorsport Heritage Group - Canadian Motorsport Hall of Fame. For more information, visit CMHF.ca.