General Motors has posted healthy second quarter financial results underpinned by strong sales in the US market this year.
The company’s finance unit and buoyant consumer demand drove the earnings boost.
GM said it successfully prioritized production of its highest demand vehicles, gained significant retail market share in the full-size pickup segment in the US and benefited from strong pricing and mix. Additionally, high used vehicle prices due to low new vehicle inventories drove continued record results at GM Financial.
Given the company’s first-half performance and its expectations for the rest of the year, GM said it is raising its full-year guidance.
GM posted Q2 net income of $2.8 billion (Q2 2020: loss of $0.8bn), and operating profit (EBIT-adjusted) of $4.1 billion (Q2 2020: loss of $0.5bn), including warranty recall costs of $1.3 billion, of which $0.8 billion was related to the Chevrolet Bolt EV, it said.
GM North America Q2 operating profit (EBIT-adjusted) was posted at $2.9 billion, for an EBIT-adjusted margin of 10.4 percent.
GM now expects full-year EBIT-adjusted in the range of $11.5 billion to $13.5 billion, compared with $10 billion to $11 billion previously.
In a letter to shareholders, CEO Mary Barra highlighted EV initiatives and said: “We are excited about launching our first Ultium-based vehicles this fall – the GMC HUMMER EV Pickup, and the BrightDrop EV600 electric commercial vehicle. They will be followed in early 2022 by the all-electric Cadillac LYRIQ SUV, and Cadillac is announcing today that it will begin taking LYRIQ reservations on Sept. 18. We have also confirmed that both Chevrolet and GMC will offer battery electric full-size pickups based on Ultium.”