GM profits rose, beat 2023 expectations

General Motors (GM) made more money than they expected to in 2023, despite a larger loss at their Cruise self-driving subsidiary.

General Motors GM Flint Metal Center

While pundits and some Stellantis releases have claimed that the UAW deal made it impossible to (for example) attend auto shows, today’s revelations by GM show it may  not have a dramatic impact going forward.

Pretax earnings and profit margins did fall in the fourth quarter, but most of that was the hefty loss by Cruise, effects of the strike on parts deliveries, and delays in new vehicle production due to late robotics deliveries. The company started planned cuts of $2 billion per year in labor costs, including in marketing and engineering. GM is also simplifying its manufacturing processes.

For 2024, GM expects similar or higher earnings, regardless of the UAW deal.

Stellantis is releasing its earnings statement in mid-February. In past years, North America has driven profits, but with lower 2023 sales and increasing rebates, some expect North America to be weaker and Europe, riding on the crest of popular product, to be stronger.

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