GM profit nears record, $50k average transaction price

GM profit nears record amount just a year after saying it couldn’t afford the UAW agreement for worker pay. Also, the average transaction price for their vehicles is now $50,000.

GM profit nears record

The latest earnings report from General Motors reveals the company is turning a profit of $3.4 billion for 2024 Q3 results. This is up from $3.2 billion a year ago.

GM said last year’s results were impacted by the UAW strike lasting more than six weeks.

Adjusted earnings for the year have now reached $9.9 billion.

Revenue rose more than 10% to $48.8 billion topping investor forecasts by nearly $800 million according to CNBC.com. This means GM is now selling vehicles at nearly $50,000 per vehicle.

GM said last year’s strike cost the company an estimated $1.1 billion. During the long strike, GM argued it couldn’t meet the union wage demands and still turn a profit. The company eventually agreed to the UAW’s demands to give an immediate 11% raise and an additional 14% raise over the next four years.

The UAW’s slogan during the strike was record profits should result in record contracts.

According to CNBC.com, GM CFO Paul Jacobson on Monday told reporters that GM cut costs ahead of the strike in anticipation of pay raises for its unionized workers.

In a prepared letter, they also said above-average pricing, well-managed inventories and below-average incentives were big drivers for more profit.

The bottom line

The roll-out of higher dollar trucks and electric vehicles may not do much for volume, however, they do a lot for profit from those buying trucks and SUVS, and reports like this one prove it.