GM Posts Strong 3rd Quarter
CBJ — General Motors posted a strong third-quarter profit of $2.5 billion, or $1.75 per share.
Revenue at GM was up 6.4% to almost $36 billion.
The average sale price of a vehicle in the U.S. reached $36,000, $800 more than a year ago and a third-quarter record. The average price in Canada topped $40,000.
The strong performance came even though GM’s global retail sales to individuals dropped 15 per cent during the quarter, to 1.98 million vehicles. But sales to dealers, the point at which GM books revenue, rose 4.5%, to 1.13 million.
A year ago, GM posted a $3 billion net loss due to a $5.4 billion charge for selling Opel and Vauxhall to the PSA Group of France.
Meanwhile, GM is offering buyouts as a means of further cost cutting. The offer is being made to salaried employees with 12 or more years of service. If less than the desired number of employees accept the buyout offer GM could invoke layoffs.