Despite challenges in its EV sales, General Motors (GM) has maintained its leadership position in American car sales for the first quarter of 2024. The company’s robust earnings performance has boosted its confidence in investing in its future, including strengthening its ICE portfolio, scaling EVs, and reinvesting in the business.
GM’s CFO, Paul Jacobson, attributed the company’s success to its resilient customer base, despite concerns over high interest rates impacting consumer spending. The company reported an operating profit of $3.7 billion in the quarter, exceeding previous estimates of $3.12 billion.
GM did face some headwinds in its EV sales, with total EV sales in the US sliding by over 20% compared to the same quarter last year. However, the company reported a 36% increase in Ultium battery vehicle sales this quarter, with the GMC Hummer and the Cadillac LYRIQ being two of the best-selling EVs.
Despite the discontinuation of its best-selling Bolt EV, GM remains committed to its goal of becoming all-electric by 2035. The company believes its EV business will be profitable by the end of the year and plans to launch several new electric vehicles in the coming months, including the Chevy Equinox EV and the Silverado EV Work Truck.
Looking forward, GM sees several ways to cut costs in its EV production, including securing lower-cost lithium and capitalizing on expected lower interest rates in the back half of 2024. The company remains confident in its ability to navigate the transition to EVs and maintain its leadership position in the automotive industry.
