Despite a drop in U.S. sales and losses from the China market, General Motors posted a quarterly profit of $3 billion, slightly less than the previous year.
The company reported revenue of $48.8 billion from July through September, representing a 10% increase from the previous year, with U.S. average vehicle sale prices remaining steady at over $49,000.
The big picture: While overall U.S. sales fell 2.2%, individual sales rose by 3%, offsetting the decline in fleet sales and contributing to a profit increase of $900 million year-over-year from higher prices.
- General Motors beat Wall Street expectations by achieving an adjusted profit of $2.96 per share and revenue that surpassed estimates.
- The company’s shares rose by 9% to mark a new high for the year, indicating a 46% increase thus far in 2024.
Go deeper: The joint venture in China saw losses of $137 million, compared to a profit of $192 million the previous year, attributed to tough market conditions and efforts to restructure the business with partner SAIC.
- North American profits rose by 13% to $3.98 billion, while losses at the Cruise autonomous vehicle unit narrowed to $435 million.
- GM raised its full-year net income guidance but pointed to lower fourth-quarter earnings due to factors such as increased production to compensate for upcoming holiday shutdowns and a rise in warranty costs.
- The company also reported progress in electric vehicle production, selling 32,000 electric vehicles during the quarter and working towards improved EV profitability, with expectations to produce 200,000 electric vehicles in the year.
