GM Beats Estimates, Ends 2022 With Record Profits Of $14.5 Billion

GM expects the success to continue through 2023 as the company prepares to launch a host of new electric vehicles.

for Michael Gauthier

January 31, 2023 at 4:03 p.m.

for Michael Gauthier

General Motors has exceeded expectations as the company posted fourth-quarter revenue of $43.1 billion as well as earnings before interest and taxes (EBIT) of $3.8 billion.

As a result, the company ended 2022 with $156.7 billion in revenue and record earnings (EBIT) of $14.5 billion. While that sounds good, CNBC noted that the company’s net income and profit margin fell, while it also ended up spending $511 million in the fourth quarter to buy out Buick dealers who didn’t want to embrace EVs.

Also: GM to invest $918 million in 4 US plants for new small-block V8 and EV components

Looking ahead, the company expects “core automotive operations to perform at a consistently strong level in 2023.” In particular, they expect earnings (adjusted EBIT) of between $10.5 and $12.5 billion this year. The company also expects earnings per share of between $6.00 and $7.00.

In a letter to shareholders, the company said they “delivered results that really set us apart from our competition.” He went on to say, “GM led the US industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions. supply”.

The company also posted record sales for the Chevrolet Bolt and Bolt EUV, which were the best-selling conventional EVs in the second half of 2022. GM says this shows the “importance of affordable EVs in our portfolio” and said they plan to increase production of the models this year.

Speaking of electric vehicles, GM noted that 2023 will be a “breakthrough year for the Ultium platform” thanks to the launch of the Blazer EV, Equinox EV, and Silverado EV. GM also said they are “accelerating production” of the Cadillac Lyriq and GMC Hummer EV Pickup, soon to be joined by a new SUV variant.

Of course, electric vehicles are only part of the story, and GM’s standout spring releases include the redesigned Chevrolet Colorado and GMC Canyon. They will be joined by the refreshed Silverado HD and Sierra HD.