Categories: Europe

GM swings to $2.8 billion This autumn revenue; warns chip crunch will hit earnings

DETROIT — Common Motors posted internet earnings of $2.8 billion within the fourth quarter, together with an adjusted $2.6 billion revenue in North America.

The acquire compares to a $194 million loss a yr earlier on account of the UAW strike.

The revenue brings GM’s full-year internet earnings to $6.4 billion, down 4.5 % from 2019, the automaker said Wednesday.

International income within the fourth quarter rose 22 % to $37.5 billion and adjusted earnings earlier than curiosity and taxes rose to $3.7 billion from $105 million a yr earlier.

GM earned $283 million from its worldwide areas, in comparison with a $120 million loss a yr earlier, and China fairness earnings was $248 million, up from $239 million.

Earnings from GM Monetary greater than doubled to $1 billion.

A world scarcity of microchips will cut back 2021 earnings by $1.5 billion to $2 billion earlier than curiosity and taxes, GM mentioned, however it won’t have an effect on development and electrical car initiatives. GM plans to prioritize manufacturing of full-size pickups, SUVs and EVs.

GM has idled three vegetation till mid-March and has been pressured to construct autos with out sure modules at different factories, holding them till extra chips are available in.

CEO Mary Barra, in a media briefing, mentioned GM “will not lose any manufacturing” of its high-profit full-size pickup vehicles and SUVs, though the availability of laptop chips “continues to be a bit fluid.”

U.S. rival Ford Motor beforehand mentioned it misplaced some manufacturing of its high-profit, top-selling F-150 pickup truck.

GM this week prolonged manufacturing cuts due to the chip scarcity at vegetation in Kansas Metropolis, Kansas; Ingersoll, Ontario; and San Luis Potosi, Mexico, via at the least mid-March. GM will construct autos at vegetation in Wentzville, Missouri, and Ramos Arizpe, Mexico, however go away them incomplete for ultimate meeting later.

GM’s U.S. light-vehicle sales rose 4.8 % within the fourth quarter, as retail gross sales started to achieve pre-pandemic ranges and redesigned full-size SUVs hit the market.

U.S. gross sales for the total yr decreased 12 % to 2.5 million autos. It marked GM’s strongest fourth quarter on a retail foundation since 2007. Retail deliveries elevated 12 %, the automaker mentioned in an announcement final month.

Full-year internet earnings fell 4.5 % from 2019 to $6.4 billion, and adjusted earnings earlier than curiosity and taxes rose 15 % from 2019 to $9.7 billion

Reuters and Bloomberg contributed to this report.

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