Normal Motors mentioned on Tuesday that its revenue within the ultimate three months of 2023 was depressed by losses stemming from unsold electrical autos and the price of a 40-day strike at a few of its U.S. crops.
The automaker, which has been banking on a speedy rise in gross sales of battery-powered fashions, earned $2.1 billion within the fourth quarter, it mentioned, up from $2.0 billion a 12 months earlier. G.M.’s income jumped about 10 p.c, to $171.8 billion.
“The tempo of E.V. development has slowed, which has created some uncertainty,” the corporate’s chief monetary officer, Paul Jacobson, mentioned in a convention name.
G.M. took a cost of $1.6 billion associated to unsold electrical autos. The strike, by the United Vehicle Employees union, value the corporate $1.1 billion, and G.M. spent $800 million on a settlement with LG Power Resolution, a battery provider, that was associated to a mass recall of the electrical Chevrolet Bolt.
A number of carmakers, together with Tesla and Ford Motor, have lowered costs in response to weaker-than-expected demand for battery-powered vehicles. G.M. has additionally struggled to supply such autos in giant numbers due to manufacturing issues with a brand new battery know-how the corporate calls Ultium.
For the total 12 months, G.M. mentioned, it made $10.1 billion, an almost 9 p.c improve from 2022.
The automaker mentioned it anticipated 2024 revenue of $9.8 billion to $11.2 billion. That vary suggests G.M. might get pleasure from a giant bounce in earnings or endure a small decline, highlighting the rising uncertainty about demand for vehicles and the general well being of the auto trade. The corporate expects to spend about $1 billion lower than final 12 months on its Cruise autonomous driving division, which has suspended the testing and industrial service of its fleet nationwide in response to rising security considerations.
G.M. has additionally pared its electrical automobile ambitions. At one time, G.M. anticipated to supply 400,000 electrical autos by the center of 2024, however customers haven’t flocked to battery-powered vehicles as quick as auto executives anticipated.
The corporate dropped that manufacturing goal final 12 months and has delayed the introduction of some new electrical fashions it has been growing. Final month, it informed sellers to cease promoting the electrical model of the Chevy Blazer till G.M. engineers might repair a software program subject that might trigger sure options of the game utility automobile to cease working.
Within the fourth quarter, G.M. offered greater than 19,000 electrical autos, however most had been Bolts, that are not being produced and used an older battery know-how. Solely a couple of third of the electrical autos that had been offered used the newer battery packs produced at a manufacturing facility in Ohio that G.M. owns in a three way partnership with LG.
Mr. Jacobson mentioned that G.M. had “loads of demand” for its electrical autos, however that it was being cautious about constructing extra autos than prospects had been prepared to purchase. “We be ok with the place we’re,” he mentioned.
