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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.

GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

2015 Chevy Spark will have lighter, smaller battery

As General Motors gets ready to release the 2015 Chevy Spark EV, it is retooling the Brownstown Battery Assembly to build a new battery system for the chirpy little electric car. The new Spark will lose a few pounds and kWh from its lithium-ion pack, but it will keep all of it's performance specs. The current Spark EV uses a 21-kWh lithium-ion battery pack with bits made by A123 Systems (known as B456 Systems during bankruptcy). For the 2015 model, GM is going to build a 19-kWh battery system in-house that will use 192 LG Chem cells. Losing a bit of energy capacity means that the battery system for the 2015 Spark EV will be 86 pounds lighter but it will keep the EPA-rated 82-mile range and 119 MPGe. The 2015 Spark EV also keeps its $26,685 (plus destination) starting price from the 2014 model. The car will once again qualify for a federal tax credit of up to $7,500. LG Chem also supplies the cells for GM's other plug-in vehicles from its facility in Western Michigan. The Brownstown production line currently builds the battery packs for the Chevy Volt, the Opel Ampera and the Cadillac ELR. You can read our first drive of the 2014 Chevy Spark here. Brownstown Battery Assembly Expands Capabilities Will build battery system for 2015 Chevrolet Spark EV 2014-05-14 DETROIT – General Motors will bring all its electric vehicle battery building capabilities in-house with production of battery systems for the 2015 Chevrolet Spark EV at its battery assembly plant in Brownstown, Mich. "Using our in-house engineering and manufacturing expertise enabled us to deliver a battery system that is more efficient and lighter than the 2014 Spark EV without sacrificing range," said Larry Nitz, executive director of GM global transmission and electrification engineering. "Our successful working relationship with LG Chem has allowed us to deliver a new battery system for the Spark EV that helps us to better leverage our economies of scale." A newly designed battery system features an overall storage capacity of 19 kWh and uses 192 lithium ion cells. The cells are produced at LG Chem's plant in Holland, Mich. The battery system weight of 474 lbs. is 86 pounds lighter than the system in the 2014 Spark EV. The Spark EV battery is built on a dedicated production line at Brownstown, which also manufactures complete battery packs for the Chevrolet Volt, Opel Ampera and Cadillac ELR.