General Motors Makes Largest Quarterly Profit Since Filing Of Bankruptcy

by San Antonio Attorney

General Motors Corporation’s adjusted profit was approximately $3.1 billion due to increasing truck sales in North America and car sales in Chinese Market.  As compared from last year’s net revenue, which was down $500 million, the automotive company’s profits are higher, according to a public announcement last Wednesday.

The profit margin was largest for General Motors since its 2009 last 2009, according to Automotive News.  The company became resilient after a $1.5 billion charge related to settlement claims due to GM’s purchased cars, which possessed a defective ignition switch that claimed 124 lives.

General Motors declared a 11.8 percent profit margin as the largest since 2009 and they will 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,” said Mary Barra, CEO of GM, via a recent interview.

Trucks paved way for increased sales in North America. Chevrolet sold 239,000 trucks in the third quarter of the year up to 34,000 from the same quarter last year.  GMC sold 146,000 total vehicles in the three months ending on Sept. 30, up to 134,000 from last year.  North American sales garnered a total of 931,000 of GM’s 2.3 million worldwide sales.

The automaker unexpected did well in sales in China.  GM posted $463 million pretax profit with a 9.8-percent margin, despite concern of the country’s economy.

The company focused more on incentives during the quarter as compared to last year.  The automaker invested 12.3 percent of its transactions in incentives compared to 11.4 percent last year.  According to reports, the average transaction prices went up by more than $500 per vehicle.

General Motor’s stock price rose by six percent, as seen on the news last Wednesday.

Leave a Comment

Previous post:

Next post: