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GM Sets First-Quarter Revenue Record for North America

justice department announces 900 million dollar settlement with gm over ignition switch recalls
GM Sets Q1 Revenue Record for North AmericaBill Pugliano - Getty Images

General Motors reported its first-quarter earnings on Tuesday, representing a 24 percent increase in first-quarter net income year-over-year. That growth has come as the result of consistently strong vehicle demand, a reduction in raw material costs, and increased deliveries of fully electric vehicles.

According to the automaker’s earnings report, GM’s net income rose by $2.9 billion during the first quarter of 2024, with global revenue rising to $43 billion, which is an increase of 7.6 percent. Without interest and taxes included in the calculation, GM posted adjusted earnings of $3.9 billion, up 1.8 percent. In North America specifically, the automaker's pretax profits jumped by 7.4 percent, reaching $3.8 billion. Revenue in North America also saw big growth, up to $36.1 billion, a 9.7 percent increase. The automaker claims that this is an all-time North American revenue record for the first quarter.

According to the Detroit Free Press, GM executives are pointing toward immense cost-cutting efforts, as well as consistent demand for their products, as the driving factors behind Q1’s success. GM CFO Paul Jacobson told reporters on Monday that the automaker had cut around $300 million in costs over the quarter, largely by reducing spending in the marketing and engineering departments. The automaker is on track to cut around $2 billion in fixed costs by the end of the year.

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General Motors EVs are also expected to perform well throughout the rest of the year, with Jacobson expecting the model lineup to be profitable by the end of Q4. The current crop of EVs helped GM break this first-quarter record, with the Ultium-powered machines seeing a 36 percent increase in deliveries in Q1. The automaker’s traditional pickup and SUV offerings remain strong players in their respective segments as well.

With a record-setting quarter behind it, GM has upped its full-year guidance for adjusted earnings before interest, taxes (EBIT) by half a billion dollars, now ranging between $12.5 billion and $14.5 billion. Net income predictions have also spiked by $300 million, settling between $10.1 billion and $11.5 billion. We’ll have to wait and see whether the ongoing demand for GM’s slate of EVs is enough to keep the records falling throughout 2024.

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