NEW YORK (AFP) – General Motors (GM) raised some of its full-year profit projections yesterday following solid earnings as strong vehicle pricing compensated for lower auto sales.
The big United States (US) automaker reported USD3.1 billion in third-quarter profits, essentially flat with the year-ago period.
Revenues jumped 10.5 per cent to USD48.8 billion despite an 8.8-per cent drop in global auto deliveries that reflected lower sales across GM’s markets. In a letter to shareholders, GM chief executive Mary Barra pointed to “above-average pricing” in GM’s home market of the US, where it avoided deep discounting despite a bounce in vehicle inventories.
“I’m proud that GM is delivering our best vehicles ever with strong financial results. But I want to be clear that we are not mistaking progress for winning,” Barra said.
“Competition is fierce, and the regulatory environment will keep getting tougher.”
GM has for months cautioned investors that it expects a moderation in strong pricing as vehicle supply rises. But chief financial officer Paul Jacobson told reporters the company has yet to see deterioration in pricing.
Jacobson said GM’s performance in China had improved from the previous quarter.
However, the company is still working to restructure the venture.
“We believe the situation is improving but there’s still work to do with our partner,” he said.
Jacobson said GM focused on boosting output of electric vehicles as a way to realise overall profitability of the growing operation.
