General Motors revealed a strong fourth quarter performance after one of the most difficult years in the industry’s recent history.
Strong Q4 numbers were a rare sight in the wake of 2022, as supply chain constraints, high price tags and interest rate hikes kept many U.S. consumers home and stymied market recovery progress for most automakers and dealerships. Many competitors, such as Ford, reported a dip in sales between October and December, and even brands which performed extremely well last quarter, like Tesla, were unable to avoid disappointment on annual numbers.
Nevertheless, GM wrapped up 2023 with $156.7 billion in annual revenue and adjusted earnings (before tax and interest) of $14.5 billion. Its fourth quarter performance was especially impressive, reaching $43.11 billion in earnings, nearly $10 billion more than it had in Q4 of 2021. The strong fourth quarter performance allowed the brand to beat expectations for the period, which were set at $40.65 billion. Earlier in January, the automaker revealed it had easily broken its record for electric vehicle sales, delivering 16,266 battery-powered cars in Q4 alone, and 39,096 in total. Last November, the brand’s CEO, Mary Barra, predicted that the company’s EV lineup would be profitable by 2025.
However, despite its strong Q4 numbers, there were still areas of concern in GM’s reporting. The company’s net income dropped by 1% in 2022, while its profit margin fell roughly 2% in comparison. With a possible recession looming in the initial half of 2023, it remains to be seen if the automaker can improve upon its success, or if the rift between its revenue and profit will continue to shrink.
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