General Motors Posts Largest Quarterly Profit Since Bankruptcy

by Aaron Cole

Updated: December 30th, 2020 Published: October 21st, 2015

general motors posts largest quarterly profit since bankruptcy

General Motors announced Wednesday that third quarter, adjusted profit for the company was $3.1 billion, led by truck sales in North America and car sales in China. The net revenue was down $500 million from the same period last year, which GM says is due to currency fluctuations, but the automaker’s profits were decidedly higher.

Automotive News reported that the profit margin was the largest for GM since its 2009 bankruptcy, even after its $1.5 billion charge to settle claims related to its defective ignition switch that resulted in 124 deaths.

The automaker posted an 11.8 percent profit margin — also its largest since 2009 — and said it would end the year above 10 percent.

“These results reflect our work to capitalize on our strengths in the U.S. and China, while taking decisive, proactive steps to mitigate challenges elsewhere,” GM CEO Mary Barra said in a statement.

According to the automaker, trucks largely led the way for increased sales in North America. Chevrolet reported selling 239,000 trucks in the third quarter, up 34,000 from the same quarter last year. GMC sold 146,000 total vehicles in the three months ending on Sept. 30, up from 134,000 last year. In all, North American sales accounted for 931,000 of GM’s 2.3 million worldwide sales.

In China, the automaker reported stronger-than-expected sales. GM posted $463 million pretax profit, a 9.8-percent margin, despite worries that the country’s economy was slowing.

The company’s dwindling South American sales were the only blemish on its accounting report. That region struggled for GM, as its market share shrank from 16.4 percent in the third quarter of 2014 to 14.1 percent for the same period this year. Worldwide, GM’s market share dipped from 11.6 percent to 11.4 percent.

According to Automotive News, GM spent more on incentives during the quarter than last year. The automaker spent 12.3 percent of average transaction price on incentives, compared to 11.4 percent last year. The report noted that average transaction prices rose by more than $500 per vehicle, however.

Shares of GM rose 6 percent Wednesday on the news.

#Chevrolet #Earnings #Financial #GeneralMotors #GMC #Profit

Aaron Cole

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2 of 23 comments

Ralph ShpoilShport on Oct 21, 2015

Yea, GM! Yea!

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Pig_Iron on Oct 22, 2015

“These results reflect our work to capitalize on our strengths in the U.S. and China, while taking decisive, proactive steps to mitigate challenges elsewhere,” GM CEO Mary Barra said in a statement. . . . Uhhh...?

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