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GM Reports Surge in Profit on Gas Car Sales
April 24, 2024
Although General Motors has had trouble selling its electric cars, a recent report indicates that the increase in sales of gas-powered vehicles helped the company generate a profit.
According to The New York Times, GM’s Q1 net income was $3 billion, rising by 24% compared to the same period in 2023 thanks to sales of “internal combustion vehicles,” particularly pickup trucks.
The company has since stated that its $9.8 billion to $11.2 billion first profit estimate was too conservative and that its revised profit estimate is between $10.1 billion and $11.5 billion.
“We’re maximizing the strength of our ICE business, we’re growing our E.V. business and improving profitability,” said Paul Jacobson, chief financial officer of General Motors, in a conference call with reporters, per the Times.
During the conference call, Jacobson also discussed the dismal sales of electric vehicles (EVs), attributing the low sales to production problems with the manufacturing of battery packs and the ensuing drop in output. In the second half of the year, he promised reporters that EV sales would ramp up and start turning a profit.
GM’s sales of all-electric vehicles in 2023 fell short of projections; 75,883 units sold, or 2.9% of total sales, were all-electric vehicles. The company originally intended to provide a substantial $7,500 incentive on models that are no longer eligible for comparable federal tax incentives to accelerate the lagging sales.
Q1 2024 sales of GM’s all-electric vehicles aren’t as robust as previously thought, either, as Jacobson confirmed that the automotive giant has only sold 9,385 vehicles equipped with its most recent battery technology. While that number indicates an uptick from just 972 vehicles a year ago, it’s still far below the company’s original expectations.
Despite these dismal numbers, General Motors has declared its intentions to add more EVs to its lineup. These include a GMC Sierra pickup truck with a maximum range of 440 miles and a Chevrolet Equinox SUV with a maximum range of 319 miles (and an appealing MSRP of $34,995). Meanwhile, GM recently announced it is axing the planned budget-friendly trim for its Hummer EV.
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