[FenwickHockey65]

GM Reports Record Third-Quarter Net Income of $2.8 Billion, Up 104 Percent
General Motors

October 25, 2016

DETROIT – General Motors Co. (NYSE: GM) today announced record third-quarter earnings and revenue driven by robust retail sales in the United States, strong performance in China, growth in wholesale volume and effective cost performance.

Records:

• Net revenue of $42.8 billion, up 10.3 percent
• ROIC-adjusted of 30.6 percent, up 4.6 points

Third-quarter records:

• Net Income of $2.8 billion, up 104 percent
• EBIT-adjusted of $3.5 billion, up 14.4 percent
• EBIT-adjusted margin of 8.3 percent
• EPS diluted of $1.76, up 110 percent
• EPS diluted-adjusted of $1.72, up 14.7 percent
• North America EBIT-adjusted of $3.5 billion
• Adjusted automotive free-cash-flow of $3.5 billion, up $2.7 billion

[SS 1LE]

Wow, that is surprising. maybe they really do know what they are doing lol...

[DGthe3]

Makes sense to me. They had the ignition switch payout in Q3 of last year. That made for a massive hit to their profits, but things have stayed fairly steady since then. So without a big ticket item like that on the books, profits go up enormously.

[arkentect]

good now they can stop pricing their cars like luxury brands

[RLHMARINES]

Originally Posted by arkentect

good now they can stop pricing their cars like luxury brands

Why?

[DGthe3]

Originally Posted by RLHMARINES

Why?

Because he is thinking like a customer, not a business.

[ChefBorOzzy]

Nice numbers. I know people like to talk down manufacturers on how they rip people off, but look at their margins and compare it to other sectors. Probably the toughest business to be in.

[CourtJester]

It's amazing what keeping plants outside of the US will do for the bottom line.

[DGthe3]

Originally Posted by CourtJester

It's amazing what keeping plants outside of the US will do for the bottom line.

You do understand that since 2010, GM has re-opened more US assembly plants than its closed, right? And in the same time period they've closed/idled/sold 5 international assembly plants (and another on the way next year) without opening any since 2008.

Some component plants (in the US and around the world) have also been closed down in that time. But I don't have any info on whether those parts are getting bought from another domestic supplier or being brought in from overseas.

Yes, some parts plants have been shut down. I bet others have gotten another shift added because of parts consolidation or productivity improvements. In nearly all plants workers, have been replaced with robots. Thats where nearly all the manufacturing jobs in the developed world have gone in the last ~20 years. Not some foreign low wage country, but to local no wage robots. But that explanation takes away the scary boogieman, takes away the easily identifiable threat. And makes it seem like the jobs could come back. But those jobs aren't coming back, not unless the United States (or insert any other wealthy developed nation) suffers some collapse that makes them a source of cheap, no complaint labour. Anyone who says otherwise either doesn't know what they're talking about or is lying.

[FenwickHockey65]

Originally Posted by CourtJester

It's amazing what keeping plants outside of the US will do for the bottom line.

Indeed. Can you believe how little GM does in the US these days? They only have:

Arlington Assembly
Bowling Green Assembly
Detroit-Hamtramck Assembly
Fairfax Assembly
Flint Assembly
Fort Wayne Assembly
Lansing Delta Township Assembly
Lansing Grand River Assembly
Lordstown Assembly
Orion Assembly
Spring Hill Assembly
Wentzville Assembly
Baltimore Operations
Bay City Powertrain
Bedford Powertrain
Defiance Casting Operations
DMAX Ltd.
Flint Engine Operations
Romulus Powertrain
Saginaw Metal Casting Operations
Toledo Transmission
Tonawanda Engine
Warren Transmission
Wixom Performance Build Center
Flint Metal Center
Marion Metal Center
Parma Metal Center
Pontiac Metal Center
Grand Rapids Operations
Kokomo Operations
Lockport Components
Rochester Operations
Brownstown Battery Assembly

Plus numerous SPO and dealer support facilities throughout the US.

Wow. How dare GM. They barely do anything in this country anymore.

[Mr V]

I did the Lansing grand river tour for the 50th celebration and they have added another shift since they started building the camaro. Was quite interesting seeing how it all works on an assembly line. The automation they use is pretty impressive.

[CourtJester]

Originally Posted by FenwickHockey65

Indeed. Can you believe how little GM does in the US these days? They only have:

Arlington Assembly
Bowling Green Assembly
Detroit-Hamtramck Assembly
Fairfax Assembly
Flint Assembly
Fort Wayne Assembly
Lansing Delta Township Assembly
Lansing Grand River Assembly
Lordstown Assembly
Orion Assembly
Spring Hill Assembly
Wentzville Assembly
Baltimore Operations
Bay City Powertrain
Bedford Powertrain
Defiance Casting Operations
DMAX Ltd.
Flint Engine Operations
Romulus Powertrain
Saginaw Metal Casting Operations
Toledo Transmission
Tonawanda Engine
Warren Transmission
Wixom Performance Build Center
Flint Metal Center
Marion Metal Center
Parma Metal Center
Pontiac Metal Center
Grand Rapids Operations
Kokomo Operations
Lockport Components
Rochester Operations
Brownstown Battery Assembly

Plus numerous SPO and dealer support facilities throughout the US.

Wow. How dare GM. They barely do anything in this country anymore.

I agree. How dare them. They have five times that outside the US selling to the US. I'll still buy GM and Ford over most others, but they don't deserve praise by any means.

http://www.autonews.com/article/20141211/OEM01/141219966/gm-to-double-mexico-production-capacity-invest-$3.6-billion-in-plants

[FenwickHockey65]

Originally Posted by CourtJester

I agree. How dare them. They have five times that outside the US selling to the US. I'll still buy GM and Ford over most others, but they don't deserve praise by any means.

http://www.autonews.com/article/20141211/OEM01/141219966/gm-to-double-mexico-production-capacity-invest-$3.6-billion-in-plants

lol please.

http://media.gm.com/media/us/en/gm/h...vestments.html

Since June 2009, GM has announced U.S. facility investment of approximately $16.8 billion. About $11.4 billion of that has come since the 2011 UAW-GM National Agreement. In total, these investments have created 3,650 new jobs and secured the positions of approximately 20,700 others.

By the way, it makes sense for a company that sells products in global markets to build those products in the same global markets. That's basic business and economics. But even going back to your link, GM only has two plants in Mexico that supply vehicles to the US, and one of them (Ramos Arizpe) builds Cruze, which is a global car. Lordstown doesn't have enough production capacity to produce enough Cruzes for the entire world. That's where a lot of that investment went.

Also:

Sonic, Cruze, Bolt EV, Malibu, Impala, Volt, Camaro, Corvette, Traverse, Tahoe, Suburban, Colorado, Silverado, Express, Verano, LaCrosse, Enclave, Canyon, Sierra, Acadia, Yukon, Savana, ATS, CTS, CT6, XT5, and Escalade are all built in the US.

Spark, SS, Caprice, Trax, Equinox, Regal, Encore, Envision, Cascada, Terrain, and XTS are built elsewhere. And a good chunk of those are built in Canada, where your Camaro was built. Oh, and two are built in Australia, where your Camaro was engineered.