General Motors reports record revenue for the second quarter, with net profit increasing 14% year-on-year.

Guishi Automotive News reports that, in the second quarter, General Motors' global net profit surged 14% to $2.9 billion, driven by strong sales of pickup trucks and SUVs in North America. Meanwhile, the company's global revenue climbed 7.2% to a record-breaking $47.97 billion. Adjusted EBIT also soared by 37%, reaching $4.4 billion. As a result, General Motors has once again raised its full-year financial outlook for 2024.

General Motors has raised its full-year adjusted EBIT forecast by $500 million, now projecting $13 billion to $15 billion. At the same time, the company lowered its net profit outlook by $100 million, revising it to a range of $10 billion to $11.4 billion. In North America, GM generated $40.7 billion in revenue, with pre-tax profits soaring 39% to $4.4 billion—both figures marking all-time highs, according to the company.
In a letter to shareholders on July 23, General Motors CEO Mary Barra attributed the company’s strong second-quarter financial performance to robust sales, market share, and profit margins of gasoline-powered pickups and SUVs in North America, as well as the growing momentum in electric vehicle sales. GM reported that its U.S. electric vehicle sales for the second quarter reached 21,930 units—up 34% from the first quarter and a remarkable 40% increase compared to the same period last year.
In the Chinese market, General Motors reported a second-quarter loss of $104 million, compared to a profit of $78 million in the same period last year. Jacobson stated that the company is working closely with its Chinese joint venture partner to restructure its business operations, aiming to achieve sustained profitability. "In China," Jacobson said, "we've been taking steps to reduce inventory, align production with demand, and cut fixed costs—but clearly, these measures haven't been enough." While Jacobson didn't provide specific details about the restructuring plan, he added, "We’ve already witnessed a significant erosion of our market share in China, and price competition there has become fiercely intense. This underscores the fact that we still have much work ahead of us." In addition to the losses in the Chinese market, General Motors' autonomous vehicle subsidiary, Cruise, also posted a second-quarter loss of $458 million this quarter—though this represents an improvement from the $611 million loss recorded during the same period last year.
Due to demand falling short of expectations, General Motors has also lowered its electric vehicle production target for this year. GM stated that it now expects to produce between 200,000 and 250,000 Chevrolet, GMC, Cadillac, and BrightDrop commercial electric vans this year—down from the previously projected 300,000 units. During the company’s earnings call, Barra informed analysts that GM will also delay the production of its electric pickup trucks at the Orion Assembly Plant in Michigan until mid-2026, six months later than originally planned. Additionally, the launch of Buick’s first-ever electric vehicle will also be postponed. Barra remarked: "While General Motors is excited about our product portfolio, the company remains committed to achieving responsible and profitable growth—no matter the demand environment. Third-party forecasting agencies predict that the EV market will continue to expand steadily over the next few years, though at a much slower pace compared to recent years. As a result, we’re adjusting our spending plans to ensure capital efficiency and stay aligned with customer needs."
General Motors will continue its efforts to achieve positive profitability for electric vehicles in the fourth quarter, ensuring that profits are realized after accounting for fixed costs. Additionally, Barra noted that GM is able to maintain stable pricing and offers incentives that are lower than those of other companies in the industry, while remaining focused on the efficient allocation of capital. Paul Jacobson, GM’s Chief Financial Officer, stated that compared to the first half of the year, the company will invest approximately $400 million more in the second half of this year to promote its new and redesigned models. However, overall, as GM continues striving toward its goal of cutting fixed costs by $2 billion, the company’s total marketing expenditures for the year will remain lower than last year’s levels. Jacobson also mentioned that GM anticipates a 1% to 1.5% decline in vehicle prices in the second half of the year, compared to the "roughly flat" pricing seen in the first half. Furthermore, he added that GM is preparing for rising commodity prices, particularly for metals like copper and aluminum.

Translated from Sina Auto

Email:
info@adtfm.com

Phone:
021-20532053

Address:
2nd Floor, No. 150 Jindian Road, Pudong New Area, Shanghai