G.M.’s Earnings Fell 3% within the First Quarter

Common Motors mentioned on Tuesday that its earnings dipped within the first three months of the 12 months. However the firm mentioned it anticipated to develop quickly because it began promoting a wider vary of electrical automobiles and vans.

Though it has offered solely a small variety of electrical automobiles this 12 months, G.M. has a number of new fashions practically prepared for manufacturing and goals to promote 400,000 such vehicles by the top of subsequent 12 months, its chief government, Mary T. Barra, mentioned.

“We’re putting in essentially the most manufacturing capability to satisfy demand,” she mentioned in a convention name to debate the corporate’s first-quarter outcomes.

Ms. Barra additionally mentioned a worldwide scarcity of pc chips that had hindered manufacturing and raised automotive costs was easing. G.M. expects auto manufacturing this 12 months to rise 25 to 30 % from 2021.

“There may be nonetheless volatility in chips,” Ms. Barra mentioned, however “we expect we’ll see stronger chip provide within the second half over the primary half.”

G.M. mentioned it had a revenue of $2.9 billion within the first quarter, down 3 % from a 12 months earlier. However income for the three months jumped practically 11 %, to $36 billion. G.M. offered 831,000 automobiles globally within the quarter, 10,000 greater than a 12 months earlier.

The corporate mentioned its outlook for 2022 was unchanged — it expects its revenue to be between $9.6 billion and $11.2 billion.

G.M. has been spending billions of {dollars} to develop electrical fashions and construct factories for these automobiles and their batteries. However it’s nonetheless removed from catching up with Tesla, and it just lately misplaced floor to Ford Motor, too. Tesla is anticipated to promote about 1.5 million electrical automobiles this 12 months. Ford’s electrical Mustang sport utility car has offered effectively, and manufacturing of an electrical model of its in style F-150 pickup truck began this month.

G.M. has taken 140,000 reservations for an electrical Chevrolet Silverado pickup truck that it’ll begin producing subsequent 12 months, Ms. Barra mentioned. The corporate additionally plans to introduce electrical variations of its Chevrolet Blazer and Equinox sport utility automobiles subsequent 12 months.

The corporate mentioned it was on monitor to start producing batteries at a brand new manufacturing unit in Lordstown, Ohio, this summer time and is constructing three extra battery vegetation in the US. The automaker has just lately began making an electrical GMC Hummer truck and an electrical luxurious S.U.V., the Cadillac Lyriq. It additionally resumed making the Chevrolet Bolt this month after working to repair a defect within the automotive’s battery. And by the top of the 12 months, G.M. will make electrical supply vans at a plant in Ontario.

Ms. Barra is relying on build up sufficient electrical car manufacturing capability to drive down prices and supply reasonably priced electrical automobiles — “part of the market our opponents usually are not targeted on,” she mentioned.

The most affordable Tesla, the compact Mannequin 3, begins at greater than $48,000, and Tesla’s Mannequin Y begins at practically $65,000. G.M. says its Equinox will promote for round $30,000. The corporate can be working with Honda, the Japanese automaker, on reasonably priced electrical automobiles.