GM saw a 52 percent jump in net income in the second quarter to $2.6 billion on the strength of sales with help from $1 billion in cost-cutting efforts with $2 billion more to go. Earnings were up 38 percent to $3.2 billion on $44.7 billion in global revenue. The automaker took a $792 million charge related to the 2021 recall of the Chevrolet Bolt after reports of fires related to batteries, an issue that has been fixed.
Things are rosy enough that GM now says it expects adjusted earnings of $12 billion to $14 billion for the year—up $1 billion—with higher net income.It remains to be seen if labor negotiations derail plans. GM's contract with the UAW expires in September and talks could be more fractious than usual with many bracing for strikes in the wake of fiery rhetoric from the new UAW leadership.
While GM has increased its cost-cutting efforts, GM chief financial officer Paul Jacobson told media the measures do not include additional layoffs. About 5,000 salaried workers have already taken buyouts.
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Source: CNBC - 🏆 12. / 72 Read more »