News

GM Reports 40 Percent Drop in Profits

Order Reprints
general motors

Oct. 28, 2021—General Motors reported Wednesday that its third-quarter net income plummeted 40% as it struggled against production constraints and thin new car inventory, the Detroit Free Press reported. 

The automaker reported a net income of $2.4 billion, down from $4 billion in the year ago period. Its adjusted earnings before interest and taxes (EBIT) was $3 billion, down from $5.3 billion. Revenue sank 25% to $26.8 billion compared to the year ago quarter when it was $35.5 billion.

In a letter to shareholders Wednesday, GM CEO Mary Barra assured Wall Street that GM is positioned well for the future with its strategy to introduce 30 new electric vehicles by 2025 and a promise to double revenues in the next decade with EVs and other diversification the company outlined earlier this month. 

But she acknowledged the struggles GM faced this quarter. 

"The quarter was challenging due to continuing semiconductor pressures," Barra wrote. "But it also includes very strong results from GM Financial, the recall cost settlement we reached with our valued and respected supplier and JV partner LG Electronics, and ($300 million) in equity income from our joint ventures in China." 

Recommended Products

2019 Industry Survey: Tech Tools

2018 Industry Survey: Tech Tools

2021 Industry Survey: Tech Tools

Related Articles

Barclays: Auto Sales May Drop 40 Percent Due to Driverless Cars

Survey: 71 Percent of Businesses Saw Drop in Revenue Due to Omicron

You must login or register in order to post a comment.