GM Revenue Breakdown, Profitability And Margin By Segment

GM Sierra HD Denali. Source: GMC Webpage

General Motors (GM) is an American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts. Founded in 1908, GM has grown into one of the world’s largest and most recognizable automakers.

The company produces many vehicles, including cars, trucks, and SUVs, under famous brands such as Chevrolet, GMC, Buick, and Cadillac. GM has a global presence, with operations in over 100 countries and a workforce of more than 164,000 workers.

Over the years, the company has been at the forefront of innovation in the automotive industry, introducing groundbreaking technologies and designs that have set the standard for the industry. Today, GM remains committed to delivering high-quality, reliable vehicles that meet the needs of consumers around the world.

This article explores General Motors’ revenue and revenue breakdown. We also look at GM’s consolidated, segment, and regional profit and margin apart from sales.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Adjusted EBIT: General Motors’ EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review its consolidated operating results because it excludes automotive interest income, automotive interest expense, and income taxes as well as certain additional adjustments that are not considered part of core operations.

Examples of adjustments to EBIT include but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in operations or discrete market and business conditions and certain costs arising from legal matters.

The corresponding measure for GM Financial segment is EBT-adjusted because interest income and interest expense are part of operating results when assessing and measuring the operational and financial performance of the segment.

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GM Business Overview

General Motors (NASDAQ: GM) businesses comprise three major segments: automotive, cruise, and GM Financial.

The automotive sector is among the largest segments, consisting of GM North America (GMNA), GM International (GMI), and Corporate.

GM North America (GMNA) meets customers’ demands in North America. In contrast, GM International (GMI) meets customers’ demands outside North America, with vehicles developed, manufactured, and marketed under the Buick, Cadillac, Chevrolet, and GMC brands.

In addition, GM has equity ownership in entities in China, with vehicles developed, manufactured, and marketed under the Baojun, Buick, Cadillac, Chevrolet, and Wuling brands.

Cruise is GM’s global segment responsible for the development and commercialization of AV technology and includes related engineering and other costs.

GM Financial is the company’s captive finance arm, and its function is to provide loans and credit facilities to retail customers and dealers.

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How Does GM Earn Revenue

General Motors earns revenue by designing, manufacturing, and selling automobiles and related parts and services. The company’s revenue comes primarily from the sale of its vehicles in various markets around the world.

Additionally, General Motors generates revenue through financing and leasing services and selling vehicle parts and accessories. The company also earns revenue from licensing its technology and intellectual property to other companies in the automotive industry.

Overall, General Motors relies on diverse revenue streams to sustain its business operations and remain competitive in the global automotive market.

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Revenue And Profitability

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General Motors earned US$171.8 billion in total net sales and revenue for fiscal year 2023, up 10% over fiscal 2022. A significant trend is that GM’s total net sales and revenue have bounced back strongly post-pandemic, surpassing pre-pandemic levels.

As revenue recovers, GM’s profitability also improves. As seen, GM’s operating income has climbed from $6.6 billion in 2020 to $9.3 billion as of 2023, while net income has risen by 55% since 2020, landing at a record figure of $9.8 billion as of 2023.

GM has been profitable since 2016, with only one loss in 2017.

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Profit Margins

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General Motors’ operating margin averaged around 5.7%, while the net margin came at 6% on average over the last five years.

GM has been profitable with positive margins in most fiscal years, even during crises such as pandemics, wars, and high inflationary environments, indicating a resilient business model.

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Growth Rates Of Revenue And Profit

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General Motors’ revenue growth averaged 12% over the last three years while operating income growth reached 14% for the same period.

GM’s net income growth averaged 19% between 2021 and 2023, the highest among all metrics in comparison.

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Revenue By Quarter

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GM earned US$43.0 billion, US$44.8 billion, and US$40.0 billion in quarterly revenue in fiscal 4Q, 3Q, and 2Q 2023, respectively.

The latest quarterly revenue of $43.0 billion represents a rise of 2% from a year ago.

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Revenue By TTM

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The TTM plot above clearly depicts the rise in GM’s total net sales and revenue in post-pandemic periods. GM’s revenue has experienced a sharp increase since 2020, resembling a parabolic surge.

As of 2Q 2023, GM’s TTM revenue hit $172 billion, a record figure since 2020. GM’s latest result was up by 10% compared to a year ago.

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Growth Rates Of Revenue By TTM

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GM’s revenue growth has significantly recovered in post-pandemic periods. Before 2021, GM hardly had any revenue growth because most figures were negative values.

GM has experienced double-digit revenue growth for the past several quarters, averaging 20% over the past four quarters.

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U.S. And Non-U.S. Revenue

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General Motors’ revenue results can also be segmented into U.S. and non-U.S. portions. According to GM, the U.S. and non-U.S. revenue is attributed to geographic areas based on the country of sale for the automotive segment. For GM Financial, revenue is attributed to geographic areas where the financing originated.

That said, GM generated most of its sales from the U.S., topping a minimum of $100 billion in most fiscal years. As of fiscal 2023, GM’s U.S. revenue landed at nearly $140 billion, a record high and over 4X higher than non-U.S. revenue.

On the other hand, GM’s non-U.S. revenue averaged only about $30 billion per year. The figure reached $32 billion as of fiscal 2023, up over 10% over 2022.

A noticeable trend is that GM’s U.S. and non-U.S. revenue have significantly risen in post-pandemic periods since fiscal year 2020, topping record figures as of 2023 for both U.S. and non-U.S. sales.

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U.S. And Non-U.S. Revenue In Percentage

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General Motors’ U.S. sales have consistently accounted for over 80% of the company’s total revenue in the last several years. The latest ratio reached 81.2%

On the other hand, GM’s non-U.S. revenue accounted for only 18.8% of total revenue as of fiscal 2023. A noticeable trend is that the ratio for U.S. revenue has slightly risen since 2016, while the non-U.S. ratio has decreased over the same period.

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Automotive, Cruise And GM Financial Revenue

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The automotive segment revenue accounts for the majority of GM’s total net sales and revenue, coming at US$157.7 billion in fiscal 2023.

GM Financial’s revenue was only US$14.2 billion, a much lower figure than the automotive segment. Cruise’s revenue was among the lowest, topping only US$102 million as of 2023.

Among all segments, the automotive revenue has climbed the fastest since 2020, at roughly 45% or $49 billion in three years.

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Automotive, Cruise And GM Financial Revenue In Percentage

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GM’s automotive segment contributed the highest portion of revenue to the company. The percentage reached 91.8% in fiscal 2023.

On the other hand, GM Financial’s revenue made up only 8.3% of the company’s total sales in fiscal 2023, while Cruise’s percentage is insignificant.

A noticeable trend is that the ratio of the automotive segment has slightly decreased from 94% in 2016 to 91.8% in 2023, while the ratio of GM Financial has slightly increased from 6% to 8.3% during the same period.

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Growth Rates Of Automotive, And GM Financial Revenue

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Between 2021 and 2023, GM’s automotive segment has grown at an average rate of 13.6%, while GM Financial’s figure averaged 1.2% for the same period.

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Automotive, Cruise And GM Financial EBIT-Adjusted

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The definition of GM’s adjusted EBIT is available here: adjusted EBIT.

The EBIT-adjusted plot above shows that GM’s automotive sector generates a much higher adjusted EBIT than GM Financial, illustrating the enormous portion of profit produced by the automotive segment.

In fiscal 2023, the adjusted EBIT of GM’s automotive sector reached $12.1 billion, about 4X the profit produced by GM Financial. GM Financial generated an adjusted EBT of $3 billion in the same period.

A noticeable trend is that the profits of both segments have significantly risen post-pandemic, particularly in the automotive sector. For example, the automotive segment’s adjusted EBIT has climbed from $7.9 billion in 2020 to $12.1 billion as of 2023, up over 50% in three years.

Cruise produced negative adjusted EBIT in all fiscal years, indicating this segment’s loss. Cruise has yet to turn a profit. Instead, the loss has become worse, reaching $2.7 billion as of 2023.

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Automotive, Cruise And GM Financial EBIT-Adjusted Margin

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Although GM Financial’s adjusted EBIT is much lower than the automotive’s, it has much higher adjusted EBIT margins. In other words, GM Financial is a much more profitable segment than the automotive.

As shown in the plot above, GM Financial’s adjusted EBIT margin was nearly 4X higher in 2022 and 2.7X higher in 2023. The much better adjusted EBIT margin of GM Financial shows that the captive finance arm runs a much more profitable business than making and selling cars.

The adjusted EBIT margin of GM’s Cruise does not apply here because it is negative in all fiscal years.

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Automotive Revenue By Quarter

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GM earned US$39.3 billion, US$40.5 billion, and US$41.3 billion in automotive revenue in fiscal 4Q, 3Q, and 2Q 2023, respectively.

GM’s automotive revenue of $39.3 billion in the latest quarter was down 1% from a year ago.

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Automotive Revenue By TTM

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The TTM plot above clearly displays the remarkable recovery in General Motors’ automotive revenue in post-pandemic periods since fiscal 2020.

As of 4Q 2023, GM’s TTM automotive revenue reached US$157.7 billion, up by nearly $14 billion or 9.5% from a year ago.

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Growth Rates Of Automotive Revenue By TTM

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GM has shown remarkable automotive revenue growth post-pandemic since fiscal year 2020. Before the pandemic, GM hardly had any revenue growth in the automotive segment because most figures were negative values.

GM’s automotive segment revenue growth has been consistently strong, averaging 21% over the past four quarters.

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Automotive Gross Profit

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GM’s automotive segment produced a gross profit of US$16.3 billion in fiscal 2023, down 5% over 2022 but up 25% over 2021.

In post-COVID periods, GM’s automotive gross profit has significantly recovered, from $11.1 billion in 2020 to $16.3 billion as of 2023, up 47% in three years.

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Automotive Gross Margin

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GM’s automotive gross margin averaged 11% in the last three years. As of fiscal 2023, GM’s automotive gross margin is estimated at 10.4%, the lowest level ever seen since 2021.

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GMNA And GMI Revenue

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GM North America (GMNA) and GM International (GMI) are the two biggest segments within the automotive sector.

In fiscal 2022, GM reported revenue of US$141.4 billion for GMNA, while GMI’s revenue clocked US$15.9 billion in the same period, a record figure for both segments, particularly for GMNA.

In post-COVID time, GMNA has significantly recovered, with revenue reaching a record high and even exceeding pre-pandemic levels. GMI’s revenue reached a record figure as of 2023 but was only one-tenth of the revenue figure of GMNA.

Therefore, GMNA contributes a much bigger revenue portion in the automotive sector.

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GMNA And GMI Revenue In Percentage

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GMNA accounts for at least 80% of the automotive segment’s total sales, with the latest figure reaching 89.7% as of fiscal 2023.

On the other hand, GMI accounts for only 10% of the automotive segment’s total revenue. The latest ratio arrived at 10.1%, slightly lower than 2022’s result.

A noticeable trend is that the percentage figure for GMNA has considerably risen since 2016, while GMI’s ratio has decreased.

The rising revenue contribution from GMNA indicates the growing importance of the North American market to General Motors. On the other hand, the international market remains a secondary market for the company.

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Growth Rates Of GMNA And GMI Revenue

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Between 2021 and 2023, GMNA’s revenue growth averaged 14%, while GMI’s reached 12%.

Before 2021, GMNA and GMI hardly had any revenue growth. In fact, both segments’ revenues were declining in most fiscal years before 2021.

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GMNA And GMI Gross Profit

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GMNA’s gross profit is estimated at $17.9 billion in fiscal 2023, slightly lower than $18.7 billion in 2022. Since fiscal year 2019, GMNA’s gross profit has significantly recovered, illustrating the brisk business the sector has enjoyed after the COVID crisis.

On the other hand, GMI’s gross profit was much smaller than GMNA’s. Its latest gross profit result of $1.8 billion was only about one-tenth of GMNA’s figure.

After the COVID-19 pandemic, GMI’s gross profit has significantly recovered. GMI achieved a record profit of $1.8 billion in 2023, a level never seen before.

In short, GMNA contributes the majority of its profit to General Motors.

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GMNA And GMI Gross Margin

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As shown in the plot above, GMNA has much higher gross margins than GMI. Therefore, North America is a much more profitable region for General Motors than the international region.

In addition, GMNA has a more consistent gross margin than GMI. GMI has produced negative gross margins over the last eight years, indicating GM’s losses in the international markets. From the gross margin perspective, GMNA has never lost money in the previous eight years.

GMNA’s gross margin is estimated at 12.6% in fiscal 2023 and averages 13.6% over the past three years, while GMI’s gross margin comes at 11.2% as of 2023 and averages 7.5% for the past three years.

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GMNA And GMI EBIT-Adjusted

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The definition of GM’s EBIT-adjusted is available here: adjusted EBIT. Again, the EBIT-adjusted plot above shows that GMNA is a much more profitable operation than GMI.

As seen, GMNA generates a much higher and more consistent profit than GMI does. As of fiscal 2023, General Motors reported an EBIT-adjusted of $12.3 billion for its North American operations, while the international operations produced an EBIT-adjusted of just $1.2 billion, a far lower profit than the North American region.

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GMNA And GMI EBIT-Adjusted Margins

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The definition of GM’s EBIT-adjusted is available here: adjusted EBIT. Margin-wise, GMNA is much better than GMI in all fiscal years.

As seen, GMNA’s adjusted EBIT margin has never dived to unprofitable results for all periods presented. On the other hand, GMI’s adjusted EBIT margin has plummeted to negative values several times, indicating the inconsistent and unpredictable nature of GM’s international operation.

GMNA’s adjusted EBIT margin topped 8.7% in fiscal 2023 and averaged 9.7% over the past three years, while GMI’s figure came in at 7.6% in fiscal 2023 and averaged 7.3% over the past three years.

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New Vehicle, Used Vehicle And Services Revenue

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GM’s automotive revenue can also be categorized into new vehicle sales, used vehicle sales, and services revenue, as shown in the plot above.

As seen, General Motors’ automotive sector earns the bulk of its revenue through the sale of new vehicles, parts, and accessories, with the revenue figure topping at least $100 billion on an annual basis.

In fiscal 2023, GM’s revenue from new vehicle sales, parts, and accessories reached a record figure of $151.5 billion, an all-time high since 2018 that exceeded pre-COVID levels.

On the other hand, GM’s used vehicle sales revenue totaled only $991 million in fiscal 2023, while services and other revenue registered $5.2 billion. These revenue figures are much higher than 2022’s results.

A significant trend is the remarkable rise in GM’s new vehicle sales and services revenue over the past six years. On the other hand, GM’s used vehicle sales revenue has considerably decreased since 2018.

GM’s new vehicle sales revenue has increased from $125.2 billion in 2018 to $151.5 billion as of 2023, while services and other revenue have increased from $4.5 billion to $5.2 billion during the same period.

GM’s used vehicle sales revenue has declined from $3.4 billion in fiscal 2018 to $991 million as of 2023, representing a more than 70% decline in five years.

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New Vehicle, Used Vehicle And Services Revenue In Percentage

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GM’s new vehicles, parts, and accessories sales contribute over 90% of revenue to the automotive segment. This ratio landed at 96.1% in fiscal 2023, one of the highest figures ever measured.

On the other hand, GM’s used vehicle sales make up less than 1% of the total automotive revenue. This ratio decreased to only 0.6% as of fiscal 2023 from 2.5% in 2018.

GM’s services revenue has remained relatively constant in terms of the percentage of automotive revenue. As of 2023, GM’s services contributed 3.3% of sales to the automotive segment.

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Leasing, Finance And Other Revenue

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GM Financial, the captive finance arm of General Motors, earns its revenue from three streams, namely leased vehicle income, finance-charged income, and others.

GM Financial’s leased vehicle income forms the majority of the segment revenue stream, totaling $7.3 billion as of fiscal 2023.

Although the leased vehicle income is among the largest, it has significantly decreased since fiscal 2018, from $10 billion in 2018 to a record low of $7.3 as of 2023.

On the other hand, GM Financial’s finance-charged income has significantly risen during the same period, reaching a record figure of $6.2 billion as of 2023.

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Leasing, Finance And Other Revenue In Percentage

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GM Financial earns the biggest part of its revenue from lease vehicle income, at 51.2% of the segment’s total revenue as of fiscal 2023. However, this ratio has significantly declined from 71% in 2018 to a record low of 51.2% as of fiscal 2023.

GM Financial’s second-largest revenue stream is from finance-charged income. In fiscal 2023, it contributed 43.6% of sales to the segment’s total revenue.

Contrary to the leased vehicle income, the revenue share of GM’s finance-charged income has climbed from 26% in 2018 to 43.6% in 2023, the highest level ever recorded.

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Conclusion

To recap, General Motors has one of the best results in 2023, with revenue as well as profit topping record figures.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from GM’s SEC filings, quarterl and annual reports, earnings releases, presentations, investor letters, etc., which are available in General Motors Investor Relations.

2. GMC Sierra HD Denali image is used under a Creative Commons license and sourced from the following websites: GMC Sierra.

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Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the total correctness of all content.

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