General Motors posts $3 billion profit despite U.S. sales dip

In the third quarter of 2024, General Motors reported a net profit of $3 billion amid declining U.S. sales and losses from its Chinese joint venture. While U.S. sales fell 2.2%, sales to individual buyers increased by 3%. The automaker's revenue climbed to $48.8 billion, benefiting from consistent average vehicle prices exceeding $49,000. In contrast, GM's joint venture in China incurred a $137 million loss due to fierce competition from domestic brands. The company is planning a restructuring in collaboration with its partner SAIC. Despite challenges in China, GM's performance in North America remained robust, with a 13% increase in pretax profits to $3.98 billion. The Cruise autonomous vehicle unit reduced its losses but is still facing setbacks. Management provided a revised full-year net income guidance of $10.4 billion to $11.1 billion, reflecting an optimistic outlook. Furthermore, GM sold 32,000 electric vehicles in the quarter at discounts lower than the industry average, illustrating the company's continued focus on electric vehicle profitability. Management believes that demand for these vehicles is starting to rise. The company's commitment to innovation in the EV space coincides with ongoing improvements in its overall operations. CEO Mary Barra expressed confidence in progress and the growing awareness of GM's electric vehicle offerings.