GM profits cut by Chevy Bolt recall
The twice-issued recall for Chevrolet Bolt electric vehicles from 2017 to 2019 cost General Motors $ 800 million, the company said in its second quarter earnings release on Wednesday. Costs associated with repairing faulty Bolt batteries represent the lion’s share of GM’s $ 1.3 billion warranty expense last quarter.
CEO Mary Barra clarified during a call to investors that the recall did not impact the Ultium platform, GM’s battery cell technology that it is developing in a joint venture with LG Energy Solutions of Korea. from South. “[Ultium] is a different drums system and our cut company plants this made Ultium cells will be to pursue rigorous quality process, ”she said.
GM initiated the second Bolt recall in July, informing customers that it plans to replace faulty battery modules to deal with fire hazards. Until customers are notified that a replacement battery is ready for them, GM has advised them to recharge their vehicle after each use and not to let the battery level drop below about 70 miles. ‘autonomy.
The figures were released as part of the auto giant’s second quarter earnings release. It announced revenue of $ 34.2 billion, up $ 1.7 billion from the first quarter of 2021 and $ 17.4 billion from its quarterly result last year. GM also reported second quarter net profit of $ 2.84 billion, down from a loss of $ 758 million a year ago, largely due to the pandemic and the associated economic fallout. GM’s adjusted revenue of $ 4.1 billion includes recall costs.
Revenues were boosted by used car prices, truck and SUV sales and strong earnings at GM Financial. GM’s loan arm reported net sales of $ 3.4 billion and adjusted income of $ 1.58 billion for the quarter.
“Yoused vehicle prices drove continued record results To DG Financial, ”confirmed GM chief financial officer Paul Jacobson during the call.
The automaker is optimistic for the rest of the year. GM has raised its adjusted annual forecast to $ 11.5 billion to $ 13.5 billion, or $ 5.40 to $ 6.40 per share. That’s up from their previous forecast of $ 10 billion to $ 11 billion, or $ 4.50 to $ 5.25 per share.