GM Raises Profit Forecast on Resilient Consumer Demand

General Motors (GM) has revised its 2024 profit forecast upward, citing stronger-than-expected consumer demand. The company raised its adjusted earnings before interest and taxes (adjusted EBIT) guidance to a range of $13 billion to $15 billion, up from the previous estimate of $12 billion to $14 billion, driven by robust vehicle demand and cost control measures. GM CEO Mary Barra stated that consumers continue to purchase vehicles despite high interest rates, and the company has managed inventory effectively. Demand for full-size pickup trucks and SUVs, particularly in North America, has been a key factor supporting GM's profitability. The company also announced a focus on reducing costs for electric vehicle (EV) investments, targeting positive variable profit margins in the EV segment by 2024. To achieve this, GM is accelerating efforts to lower battery costs and improve production efficiency. GM shares rose in pre-market trading following the forecast upgrade. Analysts note that the company's strong cash flow and prudent cost management provide a buffer against uncertainties in the automotive sector. This is not investment advice.