General Motors reported a $1.7 billion loss on production and sales of electric vehicle products in its fourth-quarter earnings report Tuesday, despite positive net income growth for the quarter.
The automaker's fourth-quarter net income rose 5.2% year-over-year to $2.1 billion, even though revenue fell 0.3% in the period. according to Go to GM's fourth quarter financial report. The electric vehicle losses come with a total of $1.1 billion in losses due to partial business shutdowns due to a six-week strike by the United Auto Workers union, which won a new labor contract that could raise payroll costs next year. did. according to The company's financial results report for investors. (Related article: 'It's no big deal': Ordinary autoworkers push back against UAW's support for Biden, insisting they can 'think' for themselves)
“In our EV business, based on current expectations for EV demand and production growth, strong interest in our vehicles, declining commodity prices, and other factors, our U.S. portfolio will see variable earnings in the second half of this year. We expect it to be positive,” Mary said. GM CEO Barra said, Said It said this in a letter to shareholders on Tuesday. “It’s true that the pace of EV growth is slowing, which creates some uncertainty. However, many third-party forecasts suggest that U.S. EV shipments will be around 7% of the industry’s growth in 2023. % to at least 10% by 2024, meaning record EV sales will continue this year.”
General Motors has released its 2024 guidance.
Net income $9.8 billion to $11.2 billion
Capital investment $10 billion to $11 billion (same as Tesla's $10 billion 🤔)
Automotive free cash flow is $8 billion to $10 billion.The stock reacted very positively, gaining +6.5% pre-market on a mostly flat market. pic.twitter.com/incz3COdF0
— AJ (@alojoh) January 30, 2024
Automakers noted that consumer demand in general has been weaker than expected, while manufacturing and quality issues are hampering the rollout of EVs in 2023. according to To the Wall Street Journal. GM expects EV sales to improve next year as the company introduces new models and expands production.
“What we don't want is to get to a point where we're so focused on increasing production that we don't think about where our consumers are,” GM Chief Financial Officer Paul Jacobson said on an investor call. ” he said. “But so far, looking at our models overall, we're happy with how they've been received.”
GM did not immediately respond to a request for comment from the Daily Caller News Foundation.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
