GM had a good fourth quarter in 2022, with net income rising to $2 billion (up 15%) and revenue up 28% to $43 billion. Still, the company is planning $2 billion in cost cuts over the next two years as the industry prepares for a Fed-fueled recession. Notably, GM’s cost cuts do not involve layoffs.
GM apparently lost money outside North America, as its North American adjusted net profit was $3.7 billion for the quarter. GM was profitable in China as well; and the GM Financial arm brought in $775 million for the fourth quarter. Leaving Russia cost a hefty $657 million, and the Buick dealership strategy—moving dealerships refusing to support electric cars—cost $511 million. Both these charges were made entirely in the fourth quarter.
For the full year, net earnings before interest and taxes reached $14.5 billion, a 1% rise from 2021—and a company record. After taxes and interest, net income was $9.9 billion. The achievement is notable partly because, at the same time, GM is investing heavily in battery plants and electric vehicle engineering. The company was #1 in U.S. sales, as Toyota slipped on production shortfalls.
UAW employees, who have a profit sharing agreement, will get $500 million, which works out to $12,750 per person (based on the year’s $13 billion profit in North America).
In U.S. sales, GM was one of the few automakers to actually grow (Toyota fell but remained ahead of Ford); the Silverado retook its advantage over Ram in pickups (Silverado and Sierra combined beat Ford F-series pickups). Cadillac was one of few brands to grow in premium-price sales, along with Tesla and Genesis.
