GM Finishes Year Strong
General Motors Co. posted a $2 billion net profit in the fourth quarter finishing the year strong despite supply chain struggles, record prices and other disruptors.

General Motors Co. posted a $2 billion net profit in the fourth quarter finishing the year strong despite supply chain struggles, record prices and other disruptors.
IMAGE: GM
General Motors Co. posted a $2 billion net profit in the fourth quarter of 2022, finishing the year strong despite supply chain struggles, record prices and other disruptors.
GM reported $14.5 billion in pretax profit for all of 2022, which is an annual record and at the high end of the range it forecasted in November. The automaker’s revenue rose 28% to $43.1 billion.
In addition, the company’s vehicle output in North America jumped 37% in the fourth quarter from 2021, according to research firm Wards Intelligence.
For 2023, GM puts its estimated pretax profit between $10.5 billion and $12.5 billion, or $6 to $7 a share, above the average analysts’ forecast of $5.78 a share, according to FactSet.
The quarterly performance report sent stock soaring, with it up over 7% in morning trading. Fourth quarter net profit rose 15% from$1.7 billion in Q4 2021.
The automaker has also reported plans to invest $650 million in a mining company to extract lithium for electric batteries in Nevada. Mining will take place at Thacker Pass, the largest known source of lithium in the U.S. GM plans to use lithium carbonate extracted there for electric-vehicle batteries.
GM execs also told analysts the automaker has no intention in engaging in an EV price war, following price cuts from Tesla Inc.
“We think right now we’re priced where we need to be,” GM Chief Executive Mary Barra said on an earnings call.
GM finance chief Paul Jacobson agreed, saying, “Our customers say that our vehicles are priced well, based on the demand that we’re seeing.”
Poor economic conditions are on the automaker’s radar, with executives noting plans to cut $2 billion in costs over the next two years. They say these cuts will come from vehicle development programs, company overhead and employee attrition, not layoffs.
The company reported it will make a record $500 million in profit-sharing payments to hourly employees represented by the United Auto Workers union. The union reports that equates to an average check of $12,750 for eligible employees.
Originally posted on Auto Dealer Today
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