The US car manufacturer General Motors escapes the industry slump and earns more than expected. According to information from Tuesday, sales in the third quarter increased to $48.8 billion, a good 10 percent more than a year ago and significantly more than analysts surveyed by Refinitiv had expected. He earned per share fordArch-rival at $2.96, a good 50 cents more than predicted, which corresponds to a quarterly profit of around three billion dollars. GM Chief Financial Officer Paul Jacobsen said demand for the vehicles was good. Interest rate cuts are likely to further boost customers’ purchasing mood in the coming year.
The numbers were well received on the New York Stock Exchange. GM shares jumped by almost 10 percent at their peak.
Things are going much better at GM than at the other two major US manufacturers: Ford is struggling with costly quality problems and difficulties in the electric car business, Stellantis with the US brand Chrysler with a decline in sales and full inventories in the USA. In Europe, car companies are also struggling with the market weakness: The European car market continued its downward trend last month, with new registrations falling by 6.1 percent in September. Unlike Ford and Stellantis, GM does not have any significant European business.
Business in China is doing better
Just a few months ago, General Motors raised its full-year profit forecast to $13 billion to $15 billion and now expects earnings to be at the upper end of this range. GM boss Mary Barra (62) also promised a similar profit for next year.
Although prices could come under pressure, cost reductions in the SUV and SUV business Electric cars and an improvement in China should offset any possible decline. In the People’s Republic, GM recently slipped into the red and is now planning to reorganize its business there. CFO Jacobsen said that the reorganization was still pending, but sales were already increasing and inventories were emptying.
GM’s profitable business with combustion vehicles is currently developing particularly well, with a number of new models currently coming onto the market. But the traditional US company has also recently been able to increase its sales of electric cars, albeit at a low level.