General Motors Co. (NYSE: GM) announced on Wednesday the third-quarter 2018 earnings results in North America were driven by all-new full-size trucks and crossovers. The total revenue before EBITDA adjustment is pegged at $3.2 billion.
GM North America posted strong margins to the tune of 10.2 percent in the third quarter of 2018 driven by an increase in average transaction prices that rose to record Q3 highs. The first light-duty 2019 Chevrolet Silverados and GMC Sierras began arriving in dealerships in August. Customer deliveries of the Silverado LTZ, High County, and the GMC Sierra Denali SLT, Denali and AT4 crew-cab models have outshone projections as production ramps up to meet expected demand. GM expects to ship about 120,000 of the new models in the second half of 2018. Production of the all-new Chevrolet Blazer will begin in the fourth quarter.
In October 2018, GM had announced that Honda will join its Cruise program to build a new autonomous vehicle. The purpose-built driverless car will serve a variety of uses and will be manufactured in high volume for global deployment. Aside from the $750 million equity investment in the Cruise program, Honda also committed another $2 billion to cover development costs for the autonomous vehicle. Due to the investment, Cruise has now attracted $5 billion in external capital and is now valued at $14.6 billion.
General Motors Financial delivered an all-time record for revenue and third-quarter record EBT of $500 million resulting from portfolio growth and stable credit. Defying challenging market conditions, GM China also raked in record third-quarter equity income, driven by a strong mix of vehicles in popular segments led by record Cadillac and Chevrolet sales.
In the electric vehicle market, GM is taking new strides each year. The Baojun E200 was launched in September along with the Buick VELITE 6 unveiled earlier this year. These are the first in a new wave of EVs launching in China over the next several years. GM is also ramping up production of the Bolt EV by 20 percent to meet growing demand. The company has also set up a partnership with Delta Electronics to develop faster charging technology and will deliver a prototype EV capable of clocking almost 290km in just 10 minutes of charging.
General Motors delivered close to 700,000 vehicles in the U.S. in Q3 2018. GM China delivered as many as 836,000 in the same time period, making for a 10 percent rise in sales. Cadillac has also posted healthy sales and customer response to its first-ever compact luxury crossover, the XT4. The company will introduce a new model every six months through 2020.