General Motors CEO Mary Barra said the company will move forward with its operations in China despite significant losses there in the first quarter of 2024.
Barra recently visited China and pledged that GM remains committed to the market that has been the company’s mainstay since 1997. The $106 million first-quarter loss in China was only GM’s third quarterly loss in the Far East in 15 years. , CNBC However, the company announced that it expects the numbers to improve.
GM Chief Financial Officer Paul Jacobson told investors the company expects to earn $446 million in 2023, on par with or slightly less than what it earned in China. It is said that he spoke.
But 2023 was GM’s lowest year for stock returns in China since at least 2012, when its market share was much smaller. Over the past decade, GM’s share of the market has shrunk from nearly 15% to 8.6%, and expectations have declined.
Still, the 2023 numbers were more than $230 million lower than 2022, despite only losing 1.2% of market share at the time. By comparison, GM’s China revenue was relatively flat from 2014 to 2018, despite a market share decline of about 1%.
At the same time, Barra asserted that GM intends to push forward with electric vehicle production. CEO said bloomberg She said she planned to create at least one EV model for every GM brand while convincing America’s middle class that electric cars were right for them.
“I think it was overvalued, and now I think it’s probably undervalued. The truth is somewhere in between,” Barra said of the EV market. “Growth has slowed, but it’s still growing.”
If consumers are confused by Barra’s recent comments, they wouldn’t be wrong. In 2022, she told Bloomberg that GM intentionally take time But in 2024, she says she wishes the company hadn’t done that.
“If I could do it all over again, I would have done it. Even if I was on the road, I would have accelerated my pace.”
Of course, this is far from what General Motors announced in October 2023. At the time, the company announced it would slow down production of EVs after losing $1 billion to the auto workers strike, and Jacobson said GM would “de-escalate the auto workers strike.” “Accelerating EV production” to protect prices.
Barra also said the company plans to reduce spending on electric vehicle products while delaying the launch of some models to cut costs. The company also noted that it would abandon its goal of producing 100,000 electric vehicles in the second half of 2023 and a further 400,000 in the first half of 2024.
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