Source: Gasgoo
According to foreign medias, the net profit of General Motor rose 24.4 percent year-on-year to $3 billion and the revenue also rose 7.6 percent year-on-year to $43 billion. The EBIT rose 1.8 percent to $3.9 billion and the EBIT margin reach 9 percent.
Image source: General Motor
GM’s EBIT in North America rose 7.4 percent to $3.8 billion, while revenue rose 9.7 percent to $36.1 billion. The result reached a record high. Based on the result, GM raised its financial target in 2024.
In a letter to shareholders, GM Chairman and CEO Mary Barra said, “In 2024, GM will continue their strength on traditional gasoline vehicle, achieve profitable growth on electric vehicle, and restart the business of Cruise self-driving system. Our teams are focusing on profitability and seizing every opportunity to continue the strong start of 2024.”
Image source: General Motor
GM indicate that the effort on cost-cutting along with strong market demand drove its successful profits growth in the first-quarter. GM is working on reducing the net fixed cost through buyouts from employee and cut spending on marketing. The purpose of GM is to cut $2 billion before the end of 2024.
Chief Financial Officer Paul Jacobson pointed out that GM was already cut $300 million fixed costs in the first quarter, mostly in marketing and engineering. GM has been able to balance higher labor costs in the contract that GM signed with UAW before. He addded, “We will continue to look for ways to reduce our fixed cost burden.”
