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General Motors reported that its profit in the final quarter of 2023 was impacted by losses from unsold electric vehicles and the cost of a strike at some of its U.S. plants. The automaker earned $2.1 billion, up from $2.0 billion in the previous year, but took a charge of $1.6 billion related to unsold electric vehicles. GM's revenue saw an increase of 10% to $171.8 billion. The company expects uncertain demand for electric vehicles and the overall health of the auto industry in 2024.
The pace of E.V. growth has slowed, which has created some uncertainty, the company's chief financial officer, Paul Jacobson, said in a conference call.
GM's electric vehicle ambitions have been scaled back, with lower production targets and reduced spending on its Cruise autonomous driving division. The company had previously aimed to produce 400,000 electric vehicles by mid-2024 but is now adjusting its plans due to slower-than-expected consumer adoption. GM expects a profit range of $9.8 billion to $11.2 billion in 2024, signaling uncertainty about demand for cars and the overall health of the auto industry.
That range suggests G.M. could enjoy a big jump in profits or suffer a small decline, highlighting the growing uncertainty about demand for cars and the overall health of the auto industry.