General Motors Co. in Detroit today released its third quarter earnings, which showed a drop in revenue, EBIT-adjusted income, net income margin, and EBIT-adjusted margin.
“In the third quarter, our EBIT-adjusted income was $2.9 billion with a 10.9-percent margin. The quarter was challenging due to continuing semiconductor pressures,” says Mary Barra, chair and CEO of GM.
“But it also includes very strong results from GM Financial, the recall cost settlement we reached with our valued and respected supplier and JV partner LG Electronics, and $0.3 billion in equity income from our joint ventures in China.”
The company expects to reach the high end of its guidance, which for EBIT-adjusted income in the range of $11.5 to $13.5 billion, which is well above the $10 to $11 billion outlook it shared in February.
“I am very proud of the team that has delivered these results and committed so strongly to our growth strategy. This includes our dealers and suppliers, who are critical to our success,” says Barra. “Together, we are developing new technologies, incubating new businesses, delivering great products and services for our customers, and generating strong results that we can reinvest in our future.”
The adjusted automotive free cash flow dropped from 9.1 billion on Sept. 30, 2020, to negative 4.3 billion, a change of $13.5 billion. GM Financials EBT-adjusted dropped as well from $1.2 billion to 1.09 billion, a small drop of $114 million.
In Related News: The Chevrolet brand of GM introduced the 2023 Corvette Z06, a new American supercar designed and engineered to be a precision tool for the track.
“Corvette has always brought a discerning customer to the Chevy family,” says Steve Hill, vice president of Chevrolet. “This new Z06 was designed and engineered to set a higher bar with increased levels of craftsmanship, personalization and performance so customers can truly have their own bespoke performance car.”
The Z06’s appearance features a new, wider sculpted front and rear fascia designs and a luxurious interior. Under the hood sits the all-new 5.5-liter LT6, the highest horsepower, naturally aspirated V-8 in any production car ever, testing at 670 horsepower at 8,400 rpm.
The vehicle’s performance builds on the foundation laid by the Stingray, as does its design. Expanded material offerings, new interior packages and features unique to Z06 enable owners to create their own bespoke American supercar.
Highlights of the vehicle include:
- A stance 3.6 inches wider than the Stingray, accommodating massive 345-series rear tires and more airflow through side air vents.
- Unique front and rear fascias, a first for Z06. The front fascia is designed to optimize the Z06’s cooling needs, including channeling air to a center heat exchanger, which is one of five for maximum cooling performance
- Standard 20-inch front and 21-inch rear forged aluminum “spider” wheels with five available finishes.
- Specific suspension tuning, including Magnetic Ride Control 4.0, and larger brakes (six-piston front) than the Stingray.
- Eight-speed dual-clutch transmission with a specific, “shorter” 5.56 final drive ratio compared to the Stingray, which enhances acceleration capability. It includes a carbon fiber high rear wing and ground effects, specific chassis tuning, specific Magnetic Ride Control calibration and unique Michelin Cup 2 R ZP tires, along with Brembo carbon ceramic brakes and optional carbon fiber wheels.
“Virtually every component that distinguishes the Z06 was developed to support or enhance its capability,” says Tadge Juechter, executive chief engineer for the Corvette. “By leveraging the mid-engine architecture’s inherent advantages, we are able to achieve six percent more downforce than a seventh-gen ZR1 at eight percent lower drag.”
Production will begin on the vehicle in summer of 2022 and will be built from Bowling Green Assembly in left- and right-hand drive.