General Motors Co. is boosting production of both models of its fast-selling Chevrolet Bolt battery electric vehicle company chair and CEO Mary Barra wrote Tuesday in a letter to shareholders.
The letter was released in conjunction with the automaker reporting third quarter net income of $3.3 billion on record revenues of $41.9 billion. That compares with a net income of $2.4 billion during the same three-month period a year ago on revenues of $26.8 billion.
GM also reaffirmed its full-year guidance for 2022 for full-year net income of between $9.6 billion and $11.2 billion, and EBIT-adjusted of between $13.0 billion and $15.0 billion
In her letter to shareholders Barra credited the company’s ability to manage what she termed “headwinds” the automaker is facing “for example, our team translated improved supply chain conditions into another quarter of full-size pickup, full-size SUV and Cadillac Escalade segment leadership.This keeps us on track to deliver our third consecutive year of full-size pickup leadership, and our 22nd year as the full-size SUV leader. To build our truck leadership and help maintain our strong margins, Chevrolet and GMC recently unveiled new midsize and heavy-duty pickups that will launch next year.”
While industry-wide, electric vehicles still represent a small percentage of sales in the U.S. Barra wrote GM’s EVs captured more than 8% of EV sales in this country during the third quarter powered by the Chevy Bolt EV and Bolt EUV.
For that reason, Barra announced the company is boosting production of both models from 44,000 units this year to 70,000 units next year. The Bolt is GM’s lowest priced battery electric vehicle attracting buyers who might otherwise be reluctant to switch to an EV.
“Our dealers and customers have embraced the Bolt because of its range, technology and value, helping it outsell Ford’s Mach-E by more than two to one in September,” wrote Barra.
Overall sales in North America were down slightly in the third quarter with GM reporting 663,000 units delivered during that period compared with 687,000 in the second quarter.
In the U.S., sales dipped to 556,000 units fro 582,000 during Q2.
However, strong sales in Asia-Pacific and South America led to an increase in GM’s global results for the period at 1.53 million units compared with 1.4 million in the second quarter.
GM’s market share both in North America and globally were basically flat in the July-September period. In North America its market share was the same 15.6% as it was during the second quarter. In the U.S., however, GM’s share slipped from 16.2% to 15.9%.
Globally, GM market share edged down to 9.4% in the third quarter from 9.6% in the second.
This story will be updated with comments from Mary Barra following an 8:30 a.m. ET conference call with financial analysts.