As a result of a surge in vehicle production, General GM reported an increase in earnings for the third quarter.
In the third quarter of 2021, the company earned $2.4 billion, but in the second half of the year it earned $3.3 billion. In the year-ago period, revenue was $28.6 billion. In the third quarter, G.M. shipped 966,000 light trucks and cars, compared to 536,000 in the same period a year ago.
The previous forecast was for full-year profit to be between $9 billion and $11 billion.
Mary Barra, the CEO of GM, said in a statement that demand for the company's products is strong.
As a result of inflationary pressures, the uncertain economy and production slowdowns caused by a global shortage of computer chips, the automotive industry is facing tougher market conditions. Last week, the company reported near-record earnings, but they fell short of expectations. On Wednesday, Ford Motor will report its third-quarter earnings.
Material costs are expected to increase by $5 billion this year. Ford said its costs would go up. The cost of buying a vehicle is going to go up because of interest rate increases.
According to a market researcher, the average purchase price of a new vehicle in the US in September was $47, 257. In the third quarter, the average monthly payment on a new vehicle was $713.
Carmakers are trying to produce new electric cars. G.M. is going to make an electric Chevrolet Silverado pickup truck in the first quarter, followed by an electric version of the Chevy Blazer and Equinox in the second half of the year.
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