GM Reports Profit Boost As Sales, Market Share Shrinks

Steph Willems
by Steph Willems

General Motors’ first-quarter earnings report revealed turmoil in international markets and a shrinking presence in North America, but net income rose to $2.1 billion, up from $1.1 billion a year ago, and adjusted earnings per share ($1.41) beat out estimates of $1.11. Still, that wasn’t enough to stop its stock from sliding in pre-market trading, as revenue of $34.9 billion undercut analyst estimates of $35.28 billion. Pre-tax earnings fell 11 percent.

In its report, GM wanted to talk about trucks. You know the ones — the revamped 2019 Silverado and Sierra 1500 crew cabs, now featured in half of the pop-up ads on your author’s computer and phone, advertising 0% financing.

Trucks are key to the company’s health, given how much it relies on its home market. The automaker reports average transaction prices $5,800 higher than the crew cabs the new models replaced. Production of regular cab and extended cab pickups began in March, GM said, with revamped heavy duty models arriving later this year.

GM Chief Financial Officer Dhivya Suryadevara claimed the company’s ongoing restructuring efforts saved the automaker $400 million in Q1 2019, though a sales slump in China and pressures elsewhere conspired to sink revenue at home and abroad. In China, a key growth market for GM, income fell 37 percent to $376 million, with sales falling 18 percent from the same period in 2018.

North American revenue dropped 1.4 percent compared to Q1 2018, with margins falling from 8 percent to 6.9 percent. Income fell $300 million to $1.9 billion. In the U.S., sales fell 7 percent in the first quarter while global sales declined by 10 percent.

Market share? That dropped, too, from 17 percent to 16.1 percent in the United States. Globally, GM’s share fell from 11.4 percent to 10.6 percent. This year has already seen GM kill off the Chevrolet Cruze, Volt, and Buick LaCrosse, with the Cadillac XTS and perhaps the Chevrolet Sonic to follow. Interestingly, U.S. pickup market share fell from 31.9 percent to 28 percent between the first quarter of 2018 to 2019. We’ve already told you how Ram kicked the Silverado to third place in the U.S. sales standings.

Amid healthy competition from revamped rivals, GM hopes to reclaim more of the market with a full line of half-ton pickups and its looming next-gen HDs. Still, many feel the new trucks should be performing better. GM truck sales fell in the first quarter as inventory rose.

Here’s a 12-month moving average of U.S. Silverado and Sierra sales combined. There’s one line missing from that chart which is my wholesale estimates for clients.

I’d love to hear GM talk themselves out of that decline despite newly redesigned trucks. pic.twitter.com/0EMY52v00p

— Daniel Ruiz (@DRuizG80) April 30, 2019

Other data shows fleet sales rising from 23 percent of total U.S. sales in Q1 2018 to 25 percent in the most recent quarter. Average incentive spend per vehicle fell $236 to $4,589.

[Images: General Motors]

Steph Willems
Steph Willems

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  • Jeff S Jeff S on Apr 30, 2019

    I am with Vulpine let's see a true compact pickup especially one that you don't have to get on a ladder to reach in the bed. Maybe Hyundai or Mitsubishi. Wouldn't mind having another Mighty Max especially if it were priced lower, rubber floors, 6 speed manual, and crank windows.

  • DenverMike DenverMike on Apr 30, 2019

    There's no real improvement with every generation of GM pickups and the cost cutting, cheapness and Chinese content shows. Just compare them to the others. In fact the past three "generations" may be the same old trucks, just a complete re-skin and renaming the platform. Their low hanging (diesel) "DEF tanks" give it way. They were an afterthought when emissions required them, and that's fine, but that was 10+ years ago, and they still haven't incorporated them into the truck. I can't feel sorry for GM. Fullsize pickups (and fullsize SUVs) should be their main priority, goes without saying.

    • Gtem Gtem on May 01, 2019

      "There’s no real improvement with every generation of GM pickups and the cost cutting, cheapness and Chinese content shows" Sums it up nicely. And this is from a guy that absolutely adores GMT400 Chevies.

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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