General Motors (G.M.) is revving up its profits in the first quarter of the year, with a significant jump driven by its gasoline vehicle business. The company reported a whopping $3 billion in profit, a 24 percent increase from the same period last year.
While G.M. saw slow growth in electric vehicles, the robust sales of internal combustion vehicles, particularly pickup trucks, played a key role in boosting its earnings. The company also raised its profit outlook for the year to $10.1 billion to $11.5 billion, up from a previous forecast.
“We’re maximizing the strength of our ICE business, we’re growing our E.V. business and improving profitability,” said G.M.’s chief financial officer, Paul Jacobson, highlighting the company’s focus on both traditional and electric vehicles.
G.M. has addressed production challenges in battery pack manufacturing and is ramping up output, with plans for its battery-powered cars and trucks to start generating profits in the second half of the year. The company made all of its profit in North America but faced losses in other regions, including a $106 million loss in China.
Despite the challenges, G.M. sold 895,000 vehicles globally in the first quarter, marking a 4 percent increase. In the United States, the company sold 9,385 electric vehicles using its latest battery technology, showing promising growth compared to the previous year.
Looking ahead, G.M. is set to introduce new electric vehicles this year, including a GMC Sierra pickup truck with a range of 440 miles and a Chevrolet Equinox SUV with a starting price of $34,995 and a range of up to 319 miles. With these new offerings, G.M. is aiming to further expand its presence in the electric vehicle market and continue its upward trajectory in profitability.
