G.M.’s Profits Fell 18.5% in the First Quarter
General Motors on Tuesday reported an 18.5 percent drop in profits in the first quarter, mainly because of the cost of job cuts and slowing new-vehicle sales in China. The company also announced that it would build a fourth battery factory in the United States while retiring the electric car that accounts for most of its sales in that category.
The decline in profit comes as higher interest rates has raised the cost of new vehicles for consumers and worries persist about a possible recession in the United States.
G.M. said its net income in the first three months of the year fell to $2.4 billion, from $2.9 billion in the first quarter of 2022. Revenue in the first quarter rose 11 percent, to $40 billion.
“The first quarter came in ahead of our own expectations, primarily as a function of pricing and a consistent incentive plan, as well as demand remains strong for our vehicles,” G.M.’s chief financial officer, Paul Jacobson, said in a conference call.
Source: The New York Times
