“Chevrolet, GMC, Buick and Cadillac were especially well prepared when demand recovered faster than expected – Chevrolet and GMC with their outstanding full-size and midsize pickups. All with a mix of new small- and full-size SUVs, which we launched on time despite the pandemic, said CEO Barra.
General Motors Co. (NYSE: GM) today reported 2020 full-year Earnings of $6.427 billion and Q4 earnings of $2.846 billion – both hurt by production interruptions caused by the COVID-19 pandemic and the Takata airbag-inflator recall announced in November. For the full year GM’s market share was flat at 10.7%; deliveries declined 900,000 at 6.8 million.
GM Financial reported record full-year EBT-adjusted of $2.7 billion. GM North America posted full-year EBIT-adjusted of $9.1 billion, and EBIT-adjusted margin of 9.4%. GM International lost money at a full-year EBIT-adjusted of $(0.5) billion with China Equity Income of $0.5 billion. Cruise struggled with a full-year EBIT-adjusted loss of $(0.9) billion. (see AutoInformed – NHTSA Nixes GM Petition for Exclusion of Millions of Big Trucks and SUVs from Takata Airbag Recalls, GM 2020 US Sales – Infected by Covid – Are Down -12%, GM to Make CAMI a Commercial Electric Vehicle Plant, GM, Cruise, Microsoft to Commercialize Self-Driving Vehicles)
In a letter to shareholders, GM Chairman and CEO Mary Barra noted, “During the pandemic, we also found better and faster ways to work, and accelerated mission-critical growth businesses like our electric and self-driving vehicle initiatives. For example:
- We increased our EV and AV investments to $27 billion from 2020 through 2025. That includes launching 30 EVs globally and achieving EV market leadership in North America. By mid-decade, GM is aiming to sell a million EVs per year in our two largest markets – North America and China, with our joint venture partners. (Environmental About Face – General Motors Ditching Internal Combustion Engines by 2035. Carbon Neutral by 2040?, GM to Sell Navistar Hydrotec Fuel Cell Power Cubes for EVs)
- Ultium Cells LLC, our joint venture with LG Chem, broke ground on a nearly 3-million-square-foot plant in Lordstown, Ohio that will produce millions of battery cells every year.
- We announced Ultifi, a reimagined, personalized EV customer experience with a single platform that simplifies discovery, education and management of GM products and services.
- And we introduced Periscope, a new safety brand that integrates vehicle technology, research and advocacy for policies that promote safer driving.”
CEO Barra also said during the earnings call the chip shortage could cut $2 billion from 2021 profits but the sales of high-profit trucks would not be affected. GM had previously announced that three of its North American plants – Fairfax in Kansas City, Kansas, CAMI in Ingersoll, Ontario and San Luis Potosi in Mexico — would be down for a week due to the chip shortage. Now the shutdown will extend through at least mid-March when it will reconsider its production plans.
GM Full-year 2020 highlights
- EPS-diluted of $4.33, and EPS-diluted-adjusted of $4.90
- Full-year income of $6.4 billion, and EBIT-adjusted of $9.7 billion
- Full-year EBIT-adjusted margin of 7.9%
- Full-year automotive operating cash flow of $7.5 billion, and adjusted automotive free cash flow of $2.6 billion
- GM North America full-year EBIT-adjusted of $9.1 billion, and EBIT-adjusted margin of 9.4%
- GM International full-year EBIT-adjusted of $(0.5) billion
- China Equity Income of $0.5 billion
- Cruise full-year EBIT-adjusted of $(0.9) billion
- GM Financial reported record full-year EBT-adjusted of $2.7 billion
General Motors Posts 2020 Earnings of $6.4 Billion. Q4 at $2.8B
“Chevrolet, GMC, Buick and Cadillac were especially well prepared when demand recovered faster than expected – Chevrolet and GMC with their outstanding full-size and midsize pickups. All with a mix of new small- and full-size SUVs, which we launched on time despite the pandemic, said CEO Barra.
General Motors Co. (NYSE: GM) today reported 2020 full-year Earnings of $6.427 billion and Q4 earnings of $2.846 billion – both hurt by production interruptions caused by the COVID-19 pandemic and the Takata airbag-inflator recall announced in November. For the full year GM’s market share was flat at 10.7%; deliveries declined 900,000 at 6.8 million.
GM Financial reported record full-year EBT-adjusted of $2.7 billion. GM North America posted full-year EBIT-adjusted of $9.1 billion, and EBIT-adjusted margin of 9.4%. GM International lost money at a full-year EBIT-adjusted of $(0.5) billion with China Equity Income of $0.5 billion. Cruise struggled with a full-year EBIT-adjusted loss of $(0.9) billion. (see AutoInformed – NHTSA Nixes GM Petition for Exclusion of Millions of Big Trucks and SUVs from Takata Airbag Recalls, GM 2020 US Sales – Infected by Covid – Are Down -12%, GM to Make CAMI a Commercial Electric Vehicle Plant, GM, Cruise, Microsoft to Commercialize Self-Driving Vehicles)
CEO Barra also said during the earnings call the chip shortage could cut $2 billion from 2021 profits but the sales of high-profit trucks would not be affected. GM had previously announced that three of its North American plants – Fairfax in Kansas City, Kansas, CAMI in Ingersoll, Ontario and San Luis Potosi in Mexico — would be down for a week due to the chip shortage. Now the shutdown will extend through at least mid-March when it will reconsider its production plans.
GM Full-year 2020 highlights