GM shares on the NYSE lower: GM exceeds expectations with quarterly figures – partnership with Samsung

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In the three months to the end of March, General Motors (GM) sales increased 11 percent year-on-year to $40 billion (36.3 billion euros), GM announced on Tuesday. The Ford Motor rival raised its full-year profit guidance by $500 million and now expects adjusted operating income (EBIT) to be between $11 billion and $13 billion. The stock rose 3 percent premarket.

Although high inflation is dampening consumer spending and rising interest rates on financing are making it more difficult to buy a car, demand remained high, particularly in the US home market. SUVs and pick-up trucks in particular continue to be very popular with customers here. Nevertheless, net profit fell by almost 19 percent to $ 2.4 billion, weighed down by losses in the cruise auto division and a slump in earnings at the financial subsidiary GM Financial. However, analysts had expected an even sharper decline.

GM intensifies partnership with Samsung SDI

General Motors is apparently expanding its partnerships to build battery factories in North America to include South Korean battery cell maker Samsung SDI. The announcement of a joint venture between the two companies could be made on Tuesday during a visit by South Korean President Yoon Suk Yeol to the United States, several insiders told the Reuters news agency. Yoon is accompanied by more than 100 business representatives, including the bosses of electronics group Samsung Electronics and carmaker Hyundai Motor. Thanks to high subsidies, the USA is currently developing into a magnet for climate-friendly technologies such as electric cars.

Numerous corporations are investing in new battery cell factories in North America to benefit from the Inflation Reduction Act that the US government has introduced. Canada is also courting foreign investors with large amounts of financial aid. Volkswagen, for example, is building its largest battery cell factory there. The European-American car group Stellantis wants to invest more than 2.5 billion dollars in a battery factory in the US state of Indiana together with Samsung SDI. In Canada, Stellantis is planning a battery project worth a good four billion dollars together with LG Energy.

Hyundai Motor has agreed a nearly $5 billion US joint venture with the battery division of energy group SK Innovation, also based in South Korea. The new battery factory in the US state of Georgia is scheduled to start production in the second half of 2025.

Details on the location of the new battery cell factory from General Motors and Samsung SDI and the investment volume were not initially given. People with knowledge of the plans said the joint venture is expected to cost more than GM and LG Energy’s $2.6 billion battery plant in Michigan. The Detroit automaker is considering building at least two additional electric vehicle plants in the United States to meet rising demand. The first battery cells are expected to roll off the assembly line in the US auto state of Michigan in 2024. It is one of three plants of the GM/LG joint venture Ultium Cells. According to insiders, plans for a fourth factory of the cooperation in the USA were dropped at the end of January.

GM shares temporarily lost 2.42 percent to $33.46 in NYSE trading.

Washington/Seoul (Reuters) /

DETROIT (dpa-AFX)

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