GM shows optimism about 2024, bets US economy’s resilience

General Motors announced on Tuesday a decline in pre-tax profits in the fourth quarter of the year, but gave investors optimistic expectations for 2024, and indicated the possibility of returning more cash to shareholders.

According to Reuters, GM CEO Mary Barra said in a letter to investors, “Consensus is growing about the continued resilience of the US economy, the labor market, and auto sales.”

The company’s shares rose by more than 7% in pre-opening trading.

General Motors expects total electric vehicle sales this year to rise to 10% of sales volume in the US market from 7% in 2023.

In a letter to shareholders, Barra highlighted the automaker’s moves to return cash to shareholders, including $12 billion in 2023 through a $10 billion share buyback and a 33% dividend increase.

Regarding the fourth quarter business results, the company announced a 5.2% increase in net income to $2.1 billion on revenues amounting to $43 billion. Adjusted pre-tax earnings fell 545 to $1.8 billion.