GM net income totals $4 billion in the third quarter

Detroit — General Motors Co. booked profits of $4 billion in the third quarter on strong sales of crossovers, pickup and SUVs, the automaker said Thursday, the first quarter when production went uninterrupted by the coronavirus pandemic.

Net income increased 74% from last third quarter, when the automaker reported how a 40-day strike by the United Auto Workers affected its earnings. GM beat Wall Street estimates for the quarter, reporting revenue of $35.5 billion in the third quarter. Pre-tax earnings totaled $5.3 billion. And profit margins soared to 14.9%. 

The Detroit automaker's positive report comes a week after rivals Ford Motor Co. and Fiat Chrysler Automobiles NV both reported a strong pandemic rebound in the the third quarter, driven by strong pent-up demand and low inventories caused by plant shutdowns in the spring.

The pandemic forced GM and its rivals to close plants for half of the second quarter, which runs April through June. Plants reopened in mid-May under strict COVID-19 protocols inside the automakers plants.

"This year, and the third quarter, is a testament to GM’s resilience," GM CEO Mary Barra said in a statement. "We entered the pandemic in a strong position and acted decisively to keep our teams safe, conserve cash and preserve liquidity, all while keeping our critical product programs on track. Now we are well positioned to meet rising customer demand, accelerate our transformation and deliver our vision of a world with zero crashes, zero emissions and zero congestion."

In the third quarter, the GM North American market made $4.4 billion up from $3 billion in the third quarter of 2019, when GM was hit with the 40-day strike that cost them $3 billion. GM International reportedly made $10 million, compared to last year's loss of $65 million. 

GM ended the quarter with automotive liquidity at $37.8 billion. GM repaid $5.2 billion of its revolving credit facilities during the third quarter, and an additional $3.9 billion in October. The Detroit automaker expects to repay the balance by year-end while maintaining a strong cash balance.

GM reached its cost savings target of $4 billion since 2018, including $200 million in the quarter. The automaker expects to continue making progress on the target range of $4-to-$4.5 billion through year end.

Ford posted pre-tax earnings of $3.6 billion, up 1.9% year-over-year, and 9.7% margins. The Blue Oval's delivery of 65 cents adjusted earnings per share blew past Wall Street expectations of 19 cents. The Dearborn automaker reported $2.4 billion in net income on revenue of $37.5 billion.

Ram and Jeep retail sales in North America fueled Fiat Chrysler to a record $2.671 billion in pre-tax earnings and 8.8% margin in the July through September period. Overall net profit increased 773% to $1.414 billion after Fiat Chrysler had lost money in the July-to-August quarter a year ago. 

This is a breaking story. Check back for more. 

khall@detroitnews.com

Twitter: @bykaleahall