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GM raises 2023 guidance on strong sales, higher profits

General Motors beat first-quarter profit estimates and raised its full-year earnings and cash-flow guidance after vehicle demand at the start of the year surpassed expectations. Its shares rose in premarket trading. GM made $2.21 a share in adjusted profit in the first quarter, compared to a consensus forecast of $1.72 a share. Revenue rose 11% to $39.99 billion, it said Tuesday, which was more than the $39.24 billion analysts expected. The stronger results stem from rising sales in the US, even in the face of higher interest rates and inflation. GM executives said demand was strong enough to revise 2023 guidance upward, boosting profit estimates for the year by $500 million to between $11 billion and $13 billion. “We did it with strong production and inventory discipline and consistent pricing,” GM Chief Financial Officer Paul Jacobson said on a call with journalists. “All in all, weÂ’re feeling confident about 2023.” The Detroit automaker raised per-share full-year guidance to between $6.35 and $7.35, up from $6 to $7 a share, and said free cash flow would also increase by $500 million to a range of $5.5 billion to $7.5 billion.  GMÂ’s shares pared a gain of as much as 4.4% before the start of regular trading Tuesday, rising 3.5% to $35.50 as of 6:55 a.m. in New York. The stock was up 1.9% for the year as of the close on Monday.  North American Strength The automakerÂ’s sales were particularly strong in North America, where first-quarter earnings rose before interest and taxes rose to $3.6 billion. Vehicle sales rose 18% to 707,000 in the region. Jacobson said the company originally expected to sell 15 million vehicles in the US this year, slightly less than the 15.5 million annualized rate automakers foresaw in the first quarter. North American demand was enough to offset a weak performance in China, GMÂ’s second-largest market. The automaker continues to struggle in the country, where its vehicle sales fell 25% to 462,000 vehicles in the quarter. Profits from its joint ventures in the market slumped 65% to $83 million.  The market has struggled overall in the wake of Covid-19 restrictions and foreign automakers have had to overcome a growing preference for Chinese brands by competing on price, squeezing profit margins. The situation in China probably wonÂ’t significantly improve until the second half of the year, according to Jacobson. GM remains on target to sell 150,000 electric vehicles this year, the CFO said.

Buick Velite 6 to come in PHEV, electric versions for China

In addition to the all-electric Enspire crossover concept revealed this week ahead of the Beijing Auto Show, Buick is adding a new production variant to its Velite series of electrified vehicles for China. It's called the Velite 6, a plug-in hybrid that will launch this year in Buick's largest market. A full-electric version, shown in the lead photo above at right, is coming later. Buick already sells a vehicle called a Velite 5 in China, which is essentially a rebadged Chevrolet Volt, only with a higher electric-only driving range. This one is based on the Velite concept PHEV introduced in late 2016 at Auto Guangzhou. The PHEV and battery-electric versions look nearly identical, with a wide stance, plenty of creases and a hatchback design that bears some similarities to the longer 2018 Regal TourX wagon. The Velite 6 uses two AC permanent-magnet synchronous motors, a lithium-ion battery and a 1.5-liter four-cylinder combustion engine. Buick says combined gas-electric driving range is 435 miles, which is 15 miles greater than the Volt. Buick will assemble what it calls the "new-generation" ternary battery pack at its new SAIC-GM Power Battery Development Center in Shanghai. The company says the Velite 6 electric vehicle "will adopt a new-generation pure electric drive system to offer customers a smooth, quiet and natural driving experience." Both models get the cloud-based Buick eConnect technology, which allows over-the-air software updates, real-time integration with China's WeChat social media network, and other digital perks. Owners will also be able to use their smartphone as the vehicle's key, and they can also authorize others to use the car through their phones. China has long been Buick's largest market, with more than 1.18 million vehicles sold in 2017 compared to just 219,231 in the U.S., and the country has established aggressive mandates for production of electric vehicles. GM has plans to add 20 new electric and fuel-cell vehicles globally by 2023. Related Video:

GM recalling nearly 4,000 vehicles over airbag concerns

Four different General Motors vehicles from the 2012 model year are being recalled over a potential airbag issue. The driver's side airbag shorting bar in the 2012 Buick Verano and 2012 Chevrolet Camaro, Cruze and Sonic might make contact with the airbag terminals, even during a crash. If so, the airbag won't deploy when it should, possibly increasing injury to the driver.
The recall is expected to begin on February 13 for the 3,896 units that might be affected. GM will notify owners who can then take their vehicles to dealers to have the airbag coil replaced. A bulletin from the National Highway Traffic Safety Administration below has more info.