G.M. Profits Hurt by Unsold Electric Vehicles and Strike

Common Motors stated on Tuesday that its profit in the closing a few months of 2023 was frustrated by losses stemming from unsold electric automobiles and the charge of a 40-working day strike at some of its U.S. plants.

The automaker, which has been banking on a immediate rise in revenue of battery-powered products, attained $2.1 billion in the fourth quarter, it mentioned, up from $2. billion a calendar year earlier. G.M.’s revenue jumped about 10 percent, to $171.8 billion.

“The speed of E.V. growth has slowed, which has created some uncertainty,” the company’s chief economical officer, Paul Jacobson, said in a meeting contact.

G.M. took a cost of $1.6 billion associated to unsold electrical autos. The strike, by the United Automobile Employees union, expense the firm $1.1 billion, and G.M. invested $800 million on a settlement with LG Electrical power Resolution, a battery supplier, that was linked to a mass remember of the electrical Chevrolet Bolt.

A number of carmakers, such as Tesla and Ford Motor, have decreased costs in response to weaker-than-anticipated need for battery-driven automobiles. G.M. has also struggled to create these types of motor vehicles in big figures mainly because of producing complications with a new battery know-how the firm phone calls Ultium.

For the total yr, G.M. explained, it built $10.1 billion, a practically 9 % increase from 2022.

The automaker reported it expected 2024 income of $9.8 billion to $11.2 billion. That variety suggests G.M. could appreciate a massive bounce in profits or experience a compact decline, highlighting the rising uncertainty about demand from customers for automobiles and the general health of the automobile business. The business expects to expend about $1 billion a lot less than past yr on its Cruise autonomous driving division, which has suspended the screening and industrial support of its fleet nationwide in reaction to escalating basic safety problems.

G.M. has also pared its electrical motor vehicle ambitions. At 1 time, G.M. predicted to create 400,000 electric autos by the middle of 2024, but shoppers have not flocked to battery-driven vehicles as quick as automobile executives anticipated.

The firm dropped that generation focus on final yr and has delayed the introduction of some new electrical versions it has been building. Very last month, it instructed sellers to end offering the electrical edition of the Chevy Blazer until eventually G.M. engineers could repair a software program difficulty that could result in certain capabilities of the sport utility auto to stop operating.

In the fourth quarter, G.M. marketed much more than 19,000 electric automobiles, but most have been Bolts, which are no lengthier remaining produced and made use of an older battery know-how. Only about a third of the electrical cars that were being offered used the more recent battery packs made at a manufacturing unit in Ohio that G.M. owns in a joint undertaking with LG.

Mr. Jacobson stated that G.M. experienced “a good deal of demand” for its electrical autos, but that it was being cautious about making a lot more autos than buyers were being completely ready to get. “We really feel superior about in which we are,” he claimed.