General Motors Co. in Detroit today reported fourth-quarter 2023 revenue of $43.0 billion and $171.8 billion for the full year, and growth of 10 percent for 2023.
Overall, GM reported net income attributable to stockholders of $10.1 billion, and EBIT-adjusted of $12.4 billion for 2023.
The report to investors stated GM was the U.S. market leader in total sales, total truck sales, full-size SUV sales, and affordable, small SUV sales. This resulted in GM’s market growing by 0.3 percent. Overall, the company reported sales of 3,768,800 vehicles in 2023.
In a letter to stockholders, Mary Barra, CEO of GM, stated “in the U.S. in 2023, GM sold more vehicles than anyone else, all our brands grew their sales year over year, and we gained market share with strong margins thanks to stable pricing and incentives that were more than 20 percent below the industry average. We also led the industry in initial quality for the second year in a row, according to J.D. Power.”
Barra also stated total company revenue grew 10 percent year over year. The company says it’s also focused on growing in 2024.
“As we look ahead, our priorities and commitments are clear,” says Barra. “They are to maximize the opportunities we have with our winning ICE portfolio with new models like the 2024 Chevrolet Traverse and 2025 Chevrolet Equinox; grow our EV business profitably; deliver strong margins and cash flow; and refocus and relaunch Cruise.”
The pace of EV growth has slowed, which has created some uncertainty for the automaker and its dealer network. But many third-party forecasts have U.S. EV deliveries rising from about 7 percent of the industry in 2023 to at least 10 percent in 2024 (largely due to government fleet sales).
“We believe our competitive position will improve throughout the year, based on higher production of the Cadillac Lyriq, GMC Hummer EV, Chevrolet Blazer EV, and Silverado EV Work Truck,” says Barra. “We’re also excited to have the Chevrolet Equinox EV and Silverado EV RST, the GMC Sierra EV Denali, and the Cadillac Escalade IQ arriving in showrooms over the course of the year.”
Barra also stated GM passed Honda and Toyota in the most affordable quadrant “thanks to attractive and profitable vehicles like the Chevrolet Trax, which is one of Car and Driver’s 10 Best Trucks and SUVs, and the Buick Envista, which is winning with younger buyers.”
GM expects 2024 to be another strong year for the company. Its 2024 guidance numbers show the company is predicting an EBiT of between $12 and $14 billion. These numbers are helped of no strike by the UAW, lower Cruise expenses, and benefits from the company’s fixed cost reduction program.
GM’s report stated that there will be higher labor costs in 2024 along with lower industry pricing of vehicles. And the pressure from China is expected to be strong as well. GM is predicting overall North American car sales of about 16 million, with EV gaining more market share.
GM will launch several internal combustion engine vehicles in 2024. They include the GMC Acadia, the Chevrolet Equinox, the Buick Enclave, the Chevrolet Travers, the Chevrolet Tahoe, and the Chevrolet Suburban.
The report stated GM should also enjoy a competitive advantage when it comes to manufacturing EVs because it developed its North American EV supply chain. This will help the bottom line as GM launches several EVs this year. They include the Chevrolet Blazer EV, the Chevrolet Silverado RV RST, the Chevrolet Equinox EV, the Cadillac Escalade IQ, the Cadillac Celestiq, and the GMC Sierra EV.
In other GM financial news, the company announced its board of directors declared a first-quarter 2024 cash dividend on the company’s outstanding common stock of 12 cents per share payable March 14, to all common shareholders of record as of the close of trading on March 1. This represents a 33 percent increase over GM’s previous quarterly dividend.
