GM (2): Global sales and earnings increase due to higher sales in the U.S.
Promoting localization of electrification technology and EV production in China
|Buick Electra E5, the first vehicle in China to adopt the Ultium platform, was launched in April 2023 (Source: GM Newsroom)|
In the first half (H1) of 2023, General Motors Company (GM) achieved significant improvement in global sales and earnings due to sales growth in the highly profitable U.S. market. On the other hand, sales in China declined considerably, making the company's dependence on its North American operations for global earnings even clearer.
In the U.S., the company reclaimed the No. 1 market share position from Toyota for the full year of 2022 and continues to grow in 2023. Although GM is moving toward EVs in its lineup, the percentage of EV sales in the first half of 2023 remained below 3%, with the Bolt, a compact car, as the mainstay. The company will accelerate the launch of EVs in the main segments through 2024. At the same time, it announced plans to strengthen and renew its full-size pickup and SUV ICE (internal combustion engine) vehicles to secure superiority and expand sales in these highly profitable segments.
In China, sales of its SAIC-GM-Wuling Automobile joint venture's ultra-compact EV (Hongguang Mini EV), which triggered a small EV boom in 2021, has stalled, and sales in China in the first half of 2023 have fallen far behind. In April, a new generation Ultium platform vehicle was launched under the Buick brand. Going forward, the JV plans to aggressively launch new vehicles in a wide range of segments, including EVs that utilize two types of EV platforms. At the same time, three Ultium platform megafactories will be opened in China to promote the localization of EV technology development and production.
Since the late 2010s, GM has been boldly withdrawing from unprofitable businesses and shifting to profitable markets to strengthen its structure for future investment. It remains to be seen whether the company can translate its recent sales growth and earnings recovery into the realization of its ambitious plans by accelerating the introduction of EV products, which is a challenge, building a system to increase production, and securing a stable supply chain.
The first part of this GM update report series focused mainly on the development of EV products and related investments in the U.S. This second part of the series reports on key models and sales trends in the U.S., China, and other global markets, as well as recent corporate performance, etc., and includes GM's production forecasts by GlobalData Plc.
GM (1): Aiming for annual production of 1 million EVs in North America by 2025 (Sep. 2023)
Robotaxi Deployments Grow Despite Negative Setbacks (Aug. 2023)
Inflation Reduction Act: Support for EV/PHEV/FCEV Purchases (Jun. 2023)
New York International Auto Show: BEV HMI (May. 2023)
Mexico: Investment plans for near-shoring and EV shift (Apr. 2023)
GM (2) Sales supported by Chinese market, profits by U.S. truck sales (Jun. 2022)
GM (1): Accelerating its Electrification Strategy to become the EV Leader in the U.S. (Jun. 2022)
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