General Motors (GM) has turned the page on the engine strike without causing much of a burden on the group's accounts.
Despite the fact that the UAW union obtained the most favorable agreement from the company in decades and despite the impact of the stoppages in production, the company led by Mary Barra has managed to grow in sales and profits in 2023, exceeding analysts' forecasts. and has presented ambitious objectives for the coming year.
The manufacturer achieved revenues of 171.8 billion dollars (about 158.5 billion euros at the current exchange rate) in 2023, 10% more than the previous year, according to the accounts reported this Tuesday.
Attributable net income was $9.9 billion to $10.1 billion and adjusted net operating income was $12.4 billion, with strong free cash flow.
In the fourth quarter, the labor conflict has caused a slight decrease in sales of 0.3%, to 42,980 million dollars, and a cut in the adjusted net operating result to 1,757 million dollars, slightly less than half that in the same period of the previous year.
Despite this, net profit has increased by 5.2%, to $2,102 million.
The company estimated the cost of the engine strike at $1.1 billion.
“As we enter 2024, I believe GM is well positioned for a year of strong financial results that will build on everything we have achieved – and learned – in 2023,” said the group's CEO, Mary Barra, in her traditional letter. to the shareholders.
“Consensus is growing that the U.S. economy, job market and auto sales will remain resilient, and at GM, we expect healthy industry sales of around 16 million units with the electric vehicle mix continuing.” growing,” he added.
That would represent growth compared to 15.5 million in 2023 and the highest figure since 2019.
The company expects that during 2024 the consolidated net profit attributable to shareholders will be between 9.8 billion and 11.2 billion dollars, compared to 10.1 billion in 2023, so the company believes that it will be able to absorb the increase in labor costs without That reduces your profitability.
Adjusted net operating income will be between $12 billion and $14 billion, according to the company's forecasts.
“In the United States in 2023, GM sold more vehicles than anyone else, all our brands increased their sales year after year and we gained market share with solid margins thanks to stable prices and incentives that are more than 20% lower than the industry average” Barra stressed.
The board highlights its leadership in the most expensive formats such as large minivans, pick-ups and vans, but also how it has surpassed Honda and Toyota in the most affordable quadrant thanks to vehicles such as the Chevrolet Trax and the Buick Envista.
While the gasoline car business steps on the accelerator, the company has stepped on the brakes on electric cars and has Cruise, its autonomous car system, in the repair shop.
The company announced a cut in investments in these segments that was very well received by the market.
“In our electric vehicle business, we expect our product portfolio in the United States to post variable profits in the second half of the year, based on our current expectations for growth in demand and production of electric vehicles, the strong interest in our vehicles , the drop in raw material prices and other factors,” says Barra.
GM's CEO admits that the pace of growth of electric vehicles has slowed.
Despite this, they will continue to gain market share and will go from 7% in 2023 to 10% of the market this year, according to third-party forecasts managed by the board.
“At Cruise, we are committed to regaining the trust of regulators and the public through our commitments and our actions.
Last week we published the results of the third-party reviews and we have already begun to apply significant changes thanks to them,” he indicates in his Barra letter.
“In short, we have learned a lot in 2023 and that is helping us leverage our strengths, meet our challenges and create an even stronger GM with a profitable and growing electric vehicle business,” he concludes.
Follow all the information on
Economy
and
Business
on
and
X
, or in our
weekly newsletter