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GM's Q4 Profit Jumps, But EV Pullback Costs Billions
27 Jan
Summary
- GM reported a higher fourth-quarter core profit driven by SUV and truck sales.
- A $6 billion charge impacted net income due to an electric vehicle strategy pullback.
- The automaker anticipates annual adjusted core profit between $13 billion and $15 billion.
In the fourth quarter, General Motors reported an increase in core profit, primarily driven by strong sales of its crossover SUVs and pickup trucks. The company's pre-tax adjusted earnings saw a rise of approximately 13% compared to the previous year.
However, GM's net income was substantially impacted by a $6 billion charge. This significant cost is attributed to a pullback in its electric vehicle strategy, including contract cancellations and settlements with suppliers who had planned for higher production volumes.
Looking ahead, GM projects an annual adjusted core profit between $13 billion and $15 billion, a forecast that surpasses analyst expectations. The company also announced a 20% increase in its quarterly dividend and approved a new $6 billion share buyback program, signaling confidence in its future.
