General Motors’ first-quarter profit was reported Tuesday to have beaten analyst estimates as the automaker focused on sales of pricey models with higher margins, even though production was limited due to chip shortage crisis and supply chain disruptions.
GM’s net income dropped a little to $2.9 billion in the quarter as higher prices were not enough to offset any increase in costs.
CEO Mary Barra said: “We continue to see a strong pricing opportunity because there is demand for our product.”
Barra said the automaker expects to build 25%-30% more vehicles in 2022 than last year despite continued volatility in the supply of semiconductor chips.
The automaker said it expects a full-year net income of $9.6 billion to $11.2 billion, and reaffirmed its full-year outlook for adjusted EBIT of $13 billion to $15 billion.
The automaker also reaffirmed its goal to build 400,000 electric vehicles this year and also in 2023.
Barra said the automaker now will peg part of its executive compensation to electric vehicle performance targets, including sales volume and release timing.
