General Motors (GM) made more money than they expected to in 2023, despite a larger loss at their Cruise self-driving subsidiary.
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.
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.
Discover more from Stellpower - that Mopar news site
Subscribe to get the latest posts sent to your email.