General Motors Co. in Detroit today reported in$43 billion revenue in Q1 2024, an 8 percent increase compared to the same period a year ago.
Over the last 24 months, the company says it achieved consistent revenue growth resulting in a compound annual growth rate of more than 15 percent.
In a letter to stockholders, Mary Barra, CEO of GM, stated the company was able to use “the strength of our winning ICE portfolio, grow our EV business profitably, advance our software-defined vehicle capability, and relaunch Cruise safely while delivering strong margins and cash flows.”
Barra also told stockholders GM delivered double-digit EBIT margins in North America, pricing has been steady, and the company gained retail market share with incentives much lower than the industry average.
“Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024,” says Barra. “That’s why we’re raising our full-year earnings, earnings per share, and free cash flow guidance. We have ICE launches around the world that will build on our strengths in pickups and SUVs.”
These include the Chevrolet Spin and S10 in South America, the Chevrolet Equinox and Buick GL8 plug-in hybrids in China, and the Chevrolet Traverse, Equinox, Tahoe, and Suburban in North America, as well as the Buick Enclave and GMC Acadia.
GM also updated its full-year earnings guidance. The original 2024 numbers predicted net income attributable to stockholders in the range of $9.8 to $11.2 billion. The range is now between $10.1 and $11.5 billion.
Automotive operating cash flow numbers were reported to be between $18.3 billion and $21.3 billion, while adjusted automotive free cash flow numbers in 2024 were reported to be between $8.5 billion and 10.5 billion. The original numbers were $8 billion to $10 billion.
Barra stated the company’s EV efforts also are showing strength.
“In our EV business, we’re seeing good early sales momentum for vehicles like the Cadillac Lyriq,” says Barra. “We also continue to see sequential and year-over-year improvements in profitability as we benefit from scale, material cost, and mix improvements.”
For example, she notes, the cost of battery cells came down significantly as GM’s Ultium Cells joint venture plant in Ohio ramped up production. Lower raw material prices have “also been a tailwind.” The second Ultium Cells plant, which opened this year in Tennessee, is ramping up even faster by applying lessons learned in Ohio, according to the automaker.
In addition, GM’s battery module production has increased 300 percent over the last six months, says Barra. Quality is very good and it’s continuing to improve. The company is projecting to double its current capacity by the end of summer.
“Improving module availability is enabling higher vehicle production, which we believe will help us win even more new customers in the growing U.S. EV market,” says Barra. “We have standout EVs today and more coming, and we’re encouraged by the feedback we’re hearing from our dealers and customers.”
GM EV products include the Chevrolet Equinox EV, which has more than 300 miles of range; the Chevrolet Silverado EV RST and GMC Sierra EV Denali, which are purpose-built electric pickups with up to 440 miles of estimated range and strong towing capability; and an expanding range of Cadillac EVs, including the Optiq and Escalade IQ SUVs.
