GM’s Q2 Mostly Rosy, But It Still Plans More Cuts
Automaker says North American performance was down.
CEO Mary Barra told shareholders that, '… we are taking new steps that will reduce GM’s costs and improve our [electric vehicle] margins over time.'
IMAGE: General Motors
General Motors’ second quarter exceeded expectations, and the Detroit automaker raised its full-year guidance for a second time.
At the same time, GM said it will cut costs by another $1 billion through 2024, the same amount it raised its operating profit guidance for this year, as it said profit and margins in North America fell quarter-over-quarter.
GM said it sees $12 billion to $14 billion in operating profit this year, compared to the $11 billion to $13 billion it foresaw a quarter ago, which itself was up from an earlier forecast of up to $12.5 billion.
CEO Mary Barra said in a letter to shareholders that, “… we are taking new steps that will reduce GM’s costs and improve our [electric vehicle] margins over time.”
As GM aims to produce about 100,000 EVs in North America in the second half of the year after meeting its 50,000 target in the first half, it also will hang onto the Chevrolet Bolt after all. Barra said that instead of retiring its entry-level EV at the end of the year, it will launch a new version with an Ultium battery.
LEARN MORE: Chevy, GMC Charging Toward EV Lineups
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