Its earnings before interest and taxes declined 8.4 per cent to $US4 billion ($A5.6b), while its North American profit equaled the $US3.1 billion ($A4.3b) it earned in the first quarter of 2021. Global revenue rose 11 per cent to nearly $36 billion ($A50b).
GM CEO Mary Barra, in a letter to shareholders, reaffirmed the company’s 2022 adjusted earnings guidance of $US13 billion to $US15 billion ($A18b-$A21b). The company expects net income of $US9.6 billion to $US11.2 billion ($A13.4b-$A15.6b) for the calendar year.
In the letter, Ms Barra said: “Our confidence is strong as we accelerate our transformation, even in the face of a challenging macro environment.”
“Our biggest growth opportunity in North America is in electric trucks. We’ve led the full-size pickup segment for two consecutive years, and we will lead the EV truck market as well.”
She said Chevrolet has about 140,000 reservations for the Silverado EV, set to launch next year, and continues to take additional reservations.
GMC has taken more than 70,000 reservations for the Hummer pickup and SUV combined.
GM plans to have one-million units of EV capacity in North America by the end of 2025 and is targeting production of 400,000 EVs in this year and next year. It aims to have an all-electric lineup by 2035.
Ms Barra said this week that GM’s EV capacity is supported by early investments to build an EV value chain, along with the company’s proprietary Ultium battery platform.
GM continues to work through the global microchip shortage, she said, and expects production this year to exceed 2021 production levels by 25-30 per cent.
“We are working deep into the tiered supply base for chips to make sure that, to the extent that we can, we control our own destiny,” she said.
GM’s first-quarter US light-vehicle sales fell 20 per cent, with all four brands posting declines largely because of supply chain disruptions, but expects stronger sales in the second half of the year.
The financials show fleet sales made up 24 per cent of total sales in the first quarter, compared with only 17 per cent in the same period in 2021. In the first quarter of 2020, it was 28 per cent.
GM earned $US328 million ($A457.5m) from international operations, up 6.5 per cent from a year earlier. China equity income fell 24 per cent to $US234 million ($A326.4m).
Earnings from GM Financial increased to $US1.3 billion ($A1.8b), up from $US1.2 billion ($A1.67b) a year earlier.
Meanwhile, GM is facing wage issues with its Mexican workers. The new independent labour union at GM’s biggest Mexican plant is seeking a 19.2 per cent wage increase, citing surging inflation. GM has countered with an offer of 3.5 per cent.
GM hopes to stall plans for the union, SINTTIA, to get members out on strike from May 31.
The GM labour negotiations are a test case for the union’s goal to reduce the wage gap between US workers and their Mexican counterparts.
SINTTIA’s proposal would boost wages at the plant that makes GM’s profitable Silverado and GMC Sierra pickups to as much as 135 pesos ($US6.62 or $A9.23) an hour, according to Reuters.
This compares to the US starting wage of $US17.50 ($A24.41) an hour.
By Neil Dowling
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