GM’s net income nearly doubles in first quarter

United States
Published:  10 May, 2019
Chevrolet Equinox

Net income for the U.S. automotive manufacturer totalled US$2.15 billion in the first quarter of 2019, up from US$1.04 billion in the same quarter of 2018.

GM delivered more than 665,000 vehicles in the U.S. in the first quarter of the year; with a selling mix of trucks, SUVs and crossovers above 80 %, the manufacturer said it has earned the highest average transaction prices for any first quarter in the Company’s history. In China, a total of 814,000 vehicles were delivered in the quarter. Worldwide, 1.87 million units were delivered in the period.

Total adjusted earnings before interest and taxes dropped US$300 million to US$2.3 billion as revenue declined 3.4% to US$34.9 billion. Adjusted earnings per share were US$1.41, above Wall Street estimates of about US$1.10. Operating profit fell 11%, attributed to challenging conditions in China and downtime at the company's full-size SUV plant in Texas, U.S.. GM’s first-quarter earnings in 2018 were said to be hampered by downtime in full-size pickup production and a restructuring in Korea, which are now paying dividends.

GM said it remains firmly committed to investing in its U.S. manufacturing operations and is to begin the next phase of its full-size pickup truck launch in the second half of 2019 with the 2020 Chevrolet Silverado HD and GMC Sierra HD. These vehicles are to be built at Flint Assembly, where 1,000 jobs were added and capacity increased to meet anticipated customer demand.

Closures and investments

In March, the carmaker announced a US$300 million investment in its Orion, Michigan, assembly plant to produce a future Chevrolet electric vehicle based on the Bolt EV architecture, adding 400 new jobs. GM said it is also adding a second shift and more than 400 new jobs at its Bowling Green, Kentucky, plant to support production of the next-generation Corvette; the carmaker has invested more than US$900 million in this facility since 2011.

As previously reported by ILM, General Motors (GM) announced in November its intention to halt production in the assembly plants of Oshawa, Ontario, Canada; Detroit-Hamtramck in Detroit; Lordstown in Warren, Ohio; as well as the propulsion plants of Baltimore Operations in White Marsh, Maryland, and Warren Transmission Operations in Warren, Michigan.