General Motors (G.M.) is revving up its profits in the first quarter of the year, with a big jump in earnings driven by strong sales of gasoline vehicles. The company reported a profit of $3 billion, a 24 percent increase from the same period last year.
While electric vehicle sales saw slow growth, G.M. saw robust sales of internal combustion vehicles, particularly pickup trucks, which helped boost its bottom line. The company now expects to make between $10.1 billion to $11.5 billion in profit for the year, up from its previous forecast.
“We’re maximizing the strength of our ICE business, we’re growing our E.V. business and improving profitability,” said G.M.’s chief financial officer, Paul Jacobson. The company has addressed production challenges in battery pack manufacturing and is ramping up output, with plans for its battery-powered cars and trucks to start generating profits in the second half of the year.
G.M. made all of its profit in North America, but reported losses in other parts of the world, including a $106 million loss in China. Despite this, the company saw a 4 percent increase in global vehicle sales, selling 895,000 vehicles in the first quarter.
In the United States, G.M. sold 9,385 electric vehicles using its latest battery technology, a significant increase from the previous year. The company plans to introduce several new electric vehicles this year, including a GMC Sierra pickup truck with a range of 440 miles and a Chevrolet Equinox SUV with a starting price of $34,995 and a range of up to 319 miles.
With a strong performance in its gasoline vehicle business and plans for expansion in the electric vehicle market, General Motors is accelerating towards a profitable year ahead.
