Revenue at General Motors rose in the third quarter despite higher production costs tied to President Trump’s tariffs.
Net revenue at the Detroit-based manufacturer increased 6.4 percent to $35.8 billion in the three months through September, the company said on Wednesday. Net income rose to $2.5 billion, or $1.75 per share, supported by a 36 percent jump in profits in the North American business, which reached $2.8 billion. Company-wide, wholesale vehicle sales rose to 1.1 billion.
Like other carmakers, GM reported a slowdown in China. Car sales there dropped to 836,000, while its market share shrank to 8.2 percent, down from 9.2 percent a year ago. Despite that, equity income from the China joint ventures rose $500 million in the quarter.
The cost of sales — a key indicator of the impact of Trump’s tariffs on steel and aluminum imports, along with levies on Chinese goods — rose 6.3 percent to $28.5 billion.
The quarter “demonstrates our determination to manage risks and deliver strong business results while continuing to advance the future of mobility,” Chief Executive Officer Mary Barra said in a statement.
The company’s stock rose 9.63 percent to $36.767 in New York trading.
After earnings, GM announced to its global workforce a voluntary buyout offer for all employees that have been with the firm 12 years or longer, a spokesman confirmed.
“Even with the positive progress we’ve made, we are taking proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance,” the spokesman said in an emailed statement. “The voluntary severance program for eligible salaried employees is one example of our efforts to improve cost-efficiency.”
GM is investing heavily in self-driving car technology. Earlier this year, Honda funneled $750 million into Cruise, GM’s self-driving subsidiary, and committed another $2 billion toward production costs.
Combined with other outside capital and GM’s own contributions, Cruise is now valued at $14.6 billion. The sector reported a $214 million loss for the quarter.
