AutoBeta(AutoBeta.net)10/31 Report--

According to GM's third-quarter results, GM's third-quarter operating income was $35.5 billion, down 0.9% from a year earlier; net profit was $2.3 billion, down 8.7% from a year earlier, and operating income and net profit fell from the same period last year.

GM said it had a negative impact on GM's business in the United States because workers from the Federation of American Automobile Manufacturers went on strike at its factories in the United States.

In September, GM failed to reach an agreement with workers on salary, health benefits, job security and other issues, and negotiations reached an impasse. Finally, the American Federation of Automobile Manufacturers went on strike on September 16th, with nearly 50, 000 workers on strike.

The strike was not quelled until October 25th. GM said UAW signed a four-year labor contract with GM, an agreement that ended a 40-day strike in UAW, which reduced GM's profits by $2 billion.

Although the union strike slashed GM's profits and U.S. sales fell 28% in September, overall sales rose 6% in the third quarter from a year earlier, unaffected by the strike.

China is GM's largest single market in the world, and the company has declined in China for five consecutive quarters compared with the same period last year due to the decline in the auto market. GM sold 689531 new cars in China in the third quarter of this year, with the exception of Cadillac's year-on-year growth, the other four brands (Buick, Chevrolet, Baojun and Wuling) all declined compared with last year. Among them, the Baojun brand fell the most, falling 35 per cent to 123000 vehicles in the third quarter compared with the same period last year. Cadillac's sales are in sharp contrast to Baojun. As the only one of the five brands to grow, Cadillac sold 51049 vehicles in the third quarter, up 11% from a year earlier.

GM Chairman and CEO Mary Barra said that in order to reverse the decline in sales, GM will launch 20 new and modified models in the Chinese market. According to statistics, in the third quarter of this year alone, GM had seven new cars on the market and three debuts.

In addition, in response to the adverse impact of the strike, GM adjusted its cost-saving target for the end of 2020 from $4 billion to $4.5 billion, with expected earnings per share of $4.28-$4.69 for the fiscal year.

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