GM earns $2.4 billion in Q2, topping expectations

GM earns $2.4 billion in Q2, topping expectations

Booming sales of high-end trucks overcome weakness in China, slowing car sales

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Detroit, Michigan – General Motors topped Wall Street expectations in the second quarter, increasing profits despite falling sales.

“Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come,” GM CEO Mary Barra said. “We will continue operating our business with discipline, and the vision needed to deliver a stronger future for our employees, customers, and shareholders.”

Pickup sales in North America drove profits for the company with market share higher, average transaction prices higher, and a new heavy-duty lineup bringing customers into showrooms.

The company earned $3 billion in North America despite falling car sales. Chevrolet offers the best case in point:

  • Car sales fell 28.6%
  • Pickup sales fell 5.0%
  • Crossovers climbed 14.7%

So, even though Chevy truck sales fell, profits increased steadily as customers selected better-appointed vehicles. And the company’s higher-margin Buick, Cadillac, and GMC lines all posted sales increases during the quarter. So the entire sales decline can be attributed to low-margin cars and the least-profitable trucks.

“We had a solid second quarter and expect the second half of the year to be stronger than the first half,” said GM CFO Dhivya Suryadevara. “Our confidence in our full-year outlook is based on our strong full-size truck rollout, other key launches and ongoing cost savings.”