General Motors Reports Strong Q1 Profits

Prices Help Offset Small US Sales Dip
Chevrolet Trax
Prices dropped a little because GM sold a higher share of lower-cost vehicles such as the Chevrolet Trax. (Chevrolet)

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DETROIT — Despite a small dip in U.S. vehicle sales, General Motors’ first-quarter net income rose more than 25% on strong deliveries of pickup trucks and other higher-profit vehicles.

The Detroit automaker said that while its average sales price per vehicle was down slightly from last year at just under $50,000, pickup sales remained strong, and it’s not seeing the price erosion across its lineup that other companies have experienced.

GM on April 23 said it made $2.97 billion from January through March, with revenue increasing 7.6% over the same period a year ago to just over $43 billion.



Excluding one-time items the company made $2.62 per share, beating Wall Street estimates of $2.13, according to FactSet.

The better-than-forecast prices also allowed GM to raise its full year net income guidance slightly to a range of $10.1 billion to $11.5 billion, up from $9.8 billion to $11.2 billion. Adjusted 2024 earnings per share guidance rose to a range of $9 to $10 from $8.50 to $9.50.

Shares of the company jumped more than 5% in premarket trading.

Chief Financial Officer Paul Jacobson said prices dropped a little because GM sold a higher share of lower-cost vehicles such as the Chevrolet Trax small SUV, which starts at $21,495 including shipping. “The portfolio as a whole has been pretty strong,” he said, noting that pickup truck sales were up 3% in the U.S.

The company still has assumed that prices will drop 2% to 2.5% for the full year, but has not seen the decline yet, Jacobson said.

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Retail sales of electric vehicles rose during the quarter, and GM is producing more of its own batteries, he said. The company is on track to hit a mid single-digit profit margin on EVs next year.

During the quarter, the company made $3.84 billion before taxes in North America, but lost $10 million in its international operations, including a $106 million loss in China.

The automaker’s troubled Cruise autonomous vehicle unit lost $519 million pretax as it tries to recover from a serious crash and allegations of a cover-up in California. CEO Mary Barra said Cruise, which had suspended testing and robotaxi rides after losing its California license, returned to testing in Phoenix to update mapping and gather road information.