GM continues their profit run

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.

David Zatz

David Zatz started what was to become the world’s biggest, most comprehensive Mopar site in 1994 as he pursued a career in organizational research and change. After a chemo-induced break, during which he wrote car books covering Vipers, minivans, and Jeeps, he returned with Patrick Rall to create StellPower.com for daily news, and to set up MoTales for mo’ tales.

David Zatz has around 30 years of experience in covering Chrysler/Mopar news and history, and most recently wrote Century of Chrysler, a 100-year retrospective on the Chrysler marque.