General Motors (NASDAQ: GM) earns its revenue from 3 major segments and they are Automotive, Cruise, and GM Financial.
GM’s automotive is the largest segment among the 3 in terms of sales and it consists of GM North America (GMNA), GM International (GMI), and Corporate.
According to the annual reports, GM North America (GMNA) meets the demands of customers in North America while GM International (GMI) meets the demands of customers outside North America, with vehicles developed, manufactured, and/or marketed under the Buick, Cadillac, Chevrolet, and GMC brands.
In addition, GM has equity ownership stakes in entities, primarily in China, with vehicles developed, manufactured, and/or 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 captive finance arm of the company and its function is to provide loans and credit facilities not only to retail customers but also dealers.
GM’s vision for the future is a world with zero crashes, zero emissions, and zero congestion.
That said, in this article, we will explore the revenue and revenue breakdown of General Motors.
Apart from the revenue breakdown, we also look into the profitability and margins by segment and by region.
Let’s get started!
Revenue And Profitability
General Motors reported revenue of $156.7 billion USD for fiscal 2022, up significantly over fiscal 2021.
In fact, fiscal 2022 revenue was the best record that has ever been reported and it even beat the pre-pandemic results.
As revenue surged in fiscal 2022, GM’s profitability also rose significantly in the same fiscal year.
As seen, GM’s operating income hit $10 billion USD while net income reached $9.7 billion USD, also some of the best records that have ever been reported.
By far, GM is a profitable company and makes money irrespective of what the challenges are, be it the COVID-19 pandemic, a high inflationary environment, a supply chain disruption, or an ongoing war.
General Motors’ operating margin hovers around 5% on average while the net margin also clocked around the same figure on average.
In fiscal 2022, GM’s operating margin came in at 6.6% while the net margin reached 6.2%, which were some of the best results that have ever been reported.
Again, GM makes money and is profitable in most fiscal years no matter what the company faces.
Growth Rates Of Revenue And Profitability
General Motors’ revenue growth hit a record figure of 23.4% in fiscal 2022 while operating income growth reached 10.6% in the same period.
GM had the best revenue growth in fiscal 2022 while operating income growth moderated in the same period.
Revenue By Quarter
GM reported quarterly revenue of $44.8 billion in fiscal 2Q 2023, up by a massive amount of $9 billion from a year ago.
Also, GM’s quarterly revenue has been on the rise since fiscal 2020 and reached multiple highs between 2022 and 2023.
Revenue By TTM
The TTM plot above clearly depicts the rise of GM’s revenue in post-pandemic periods.
As of 2Q 2023, GM’s TTM revenue hit $170 billion USD, beating all prior records and a new high over the past 9 years.
Compared to a year ago, GM’s 2Q 2023 result was up by a massive 29%.
Growth Rates Of Revenue By TTM
The growth rate plot above shows that GM’s TTM revenue growth has been on a roll in post-pandemic periods.
Prior to 2021, GM hardly had any revenue growth.
However, GM has been on a significant comeback in post-pandemic periods.
As seen, GM’s TTM revenue grew by a massive 28.5% as of 2Q 2023 compared to a decline of 5.4% over a year ago.
U.S. And Non-U.S. Revenue
General Motors’ revenue results also can 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 and geographic areas where the financing originated for GM Financial.
That said, GM’s U.S. sales form the majority of the revenue, topping a minimum of $100 billion in most fiscal years.
As of fiscal 2022, GM’s U.S. revenue totaled nearly $128 billion which was more than 4X the amount of non-U.S. revenue.
On the other hand, GM’s non-U.S. revenue averaged less than $30 billion in most fiscal years and totaled only $29 billion in fiscal 2022.
U.S. And Non-U.S. Revenue In Percentage
From the perspective of percentages, General Motors’ U.S. sales contributed to more than 80% of the company’s total revenue in most fiscal years.
This ratio has been on the rise since fiscal 2016 while the non-U.S. portion has been on the decline.
As seen, as of fiscal 2022, GM’s non-U.S. sales contributed to only 18.4% of the company’s total revenue.
Automotive, Cruise And GM Financial Revenue
GM Automotive earned a massive $144 billion USD in fiscal 2022 compared to only $13 billion USD for GM Financial while Cruise’s revenue came in at a little over $100 million in the same period.
The fiscal 2022 result was most likely the best that GM has ever reported as automotive revenue surged to a new high, beating all prior figures.
Automotive, Cruise And GM Financial Revenue In Percentage
In terms of the percentage, GM’s automotive segment contributed to about 92% of the company’s total revenue in fiscal 2022, the highest among all segments and this figure has actually been on the decline.
While GM Financial made up only 8% of the company’s total revenue in fiscal 2022, the ratio has significantly grown over the years.
Cruise’s revenue percentage has been insignificant.
Growth Rates Of Automotive, And GM Financial Revenue
GM’s automotive segment had a record growth rate in fiscal 2022, at 26.8% year-on-year, and was much higher than all prior results.
On the other hand, GM Financial’s revenue growth has been on the decline in the past 6 years.
As of fiscal 2022, GM Financial’s revenue declined by 4.9% over 2021 and it has stopped growing since fiscal 2020 after recording a growth of 3.8% in the prior year.
Automotive, Cruise And GM Financial EBIT-Adjusted
The EBIT-adjusted plot above shows that GM’s automotive sector generates much higher adjusted EBIT than GM Financial, illustrating the enormous portion of profit produced by the automotive segment.
In fiscal 2022, the adjusted EBIT of GM’s automotive sector came in at $12.2 billion, about 3X higher than GM Financial’s figure of $4 billion.
Although GM Financial’s revenue has been on the decline, its adjusted EBIT has been on the rise.
On the other hand, the adjusted EBIT of GM’s automotive has only been able to catch up in post-pandemic periods.
Last but not least, GM’s Cruise produced negative adjusted EBIT in all fiscal years, indicating the losses that this segment had incurred all these years.
Automotive, Cruise And GM Financial EBIT-Adjusted Margin
While GM Financial’s adjusted EBIT is much lower than the automotive’s figure, it has much higher adjusted EBIT margins.
As shown in the plot, GM Financial’s adjusted EBIT margin was nearly 4X higher than the figure produced by the automotive segment, notably at 32% in fiscal 2022 compared to only 8.5% for the automotive sector.
The much higher adjusted EBIT margin of GM Financial shows that the captive finance arm of the company operates a much more profitable business compared to making and selling cars.
On the other hand, the adjusted EBIT margin of GM’s Cruise does not apply here because it is negative in all fiscal years.
Automotive Revenue By Quarter
From a quarterly perspective, GM’s automotive revenue has been on the up in post-pandemic periods since fiscal 2020.
As of 2Q 2023, GM reported quarterly automotive revenue of $41.3 billion, up by a massive $9 billion over a year ago.
Automotive Revenue By TTM
The TTM plot above clearly displays the remarkable growth of General Motors’ automotive revenue in post-pandemic periods since fiscal 2020.
As of 2Q 2023, GM’s TTM automotive revenue reached $156.4 billion USD, up by more than $30 billion in just a year and a figure that was last seen in 2016.
Growth Rates Of Automotive Revenue By TTM
GM’s automotive segment hardly had any growth prior to 2021.
However, things changed significantly in the post-pandemic periods.
In the post-pandemic time after 2020, GM’s automotive segment reported massive growth, with the TTM year-on-year growth rate topping 31.2% as of fiscal 2Q 2023 compared to a decline of 5.4% reported in the same quarter a year ago.
Automotive Gross Profit
GM’s automotive segment produced a gross profit of $17 billion USD in fiscal 2022, up 30% over 2021 and more than 50% over 2020.
After hitting the bottom in fiscal 2020 during the COVID-19 pandemic, GM’s automotive gross profit has since been on the rise, illustrating the growing profitability of the company’s automotive sector in post-pandemic time.
Automotive Gross Margin
The gross margin plot above shows that GM’s automotive gross margin has been on an expansion since fiscal 2018.
As of fiscal 2022, GM’s automotive gross margin is estimated at 12%, a record figure since 2018.
GMNA And GMI Revenue
GM North America (GMNA) and GM International (GMI) are the 2 biggest segments within the automotive sector.
In fiscal 2022, GM reported revenue of $128 billion USD for GMNA while GMI’s revenue clocked $15 billion in the same period, a record figure for both segments, particularly for GMNA.
Fiscal 2022 was probably the best year for GMNA when its revenue hit a record high, beating all prior results by a substantial margin.
GMNA And GMI Revenue In Percentage
In terms of the percentage, GMNA’s revenue accounts for a minimum of 80% of the automotive’s total sales, and this figure came in at 89% in fiscal 2022.
On the other hand, GMI’s revenue accounts for only 10.7% of the automotive segment sales in fiscal 2022, roughly in line with that of 2021.
An interesting fact is that the percentage figure for GMNA has been on the rise while that of GMI has been on the decline in the period shown.
The rising revenue contribution of GMNA says about the dominance and the importance of the North American market to General Motors while the international region remains a secondary market.
Growth Rates Of GMNA And GMI Revenue
The revenue of both GMNA and GMI grew at the same rate in fiscal 2022, notably at 26.7%, and represents a record figure in the past 6 years.
Prior to 2022, both GMNA and GMI hardly had any revenue growth.
In fact, their revenues were in decline in most fiscal years prior to 2022.
GMNA And GMI Gross Profit
GMNA’s gross profit is estimated at $18.7 billion in fiscal 2022 and is much higher than all figures estimated in all fiscal years.
In fact, GMNA’s gross profit had been on the up after hitting the bottom in fiscal 2019 and the result in 2022 had even exceeded pre-pandemic figures.
On the other hand, GMI had been having inconsistent gross profit and it even encountered losses in some fiscal years, illustrating the unprofitable nature of the international market to the company.
Fortunately, GMI’s gross profit came in at a massive $1.25 billion USD in fiscal 2022, blowing all past results through the door.
In short, GMNA generates consistent and massive profits for General Motors while GMI’s profit has not been unpredictable.
GMNA And GMI Gross Margin
GMNA has much higher gross margins than GMI as shown in the plot above.
Therefore, North America is a much more profitable region compared to the international region.
Also, GMI’s gross margin is inconsistent and some results are negative, indicating that GM suffers losses in some fiscal years in its international markets.
As of fiscal 2022, GMNA’s gross margin is estimated at 14.6% while GMI’s gross margin came in at 8.1%.
GMNA And GMI EBIT-Adjusted
The EBIT-adjusted plot above shows that GMNA is a much more profitable region compared to GMI.
From the perspective of the EBIT-adjusted, GMNA generates a more consistent profit than GMI does.
As of fiscal 2022, General Motors reported an EBIT-adjusted of $13 billion for its North American operations while the international operations produced an EBIT-adjusted of only $1.1 billion USD, a far lower profit compared to the North American region.
GMNA And GMI EBIT-Adjusted Margins
Margin-wise, GMNA’s adjusted EBIT is much better than GMI’s in all fiscal years.
Again, GMI’s adjusted EBIT margin dived below profitability levels in some fiscal years, indicating the inconsistent and unpredictable nature of its international market.
In fiscal 2022, GMNA’s adjusted EBIT margin topped 10.1% while GMI’s figure came in at 7.4%, the best figures that General Motors has reported since fiscal 2016.
New Vehicle, Used Vehicle And Services Revenue
GM’s automotive revenue also can 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 total sales topping at least $100 billion on an annual basis.
In fiscal 2022, GM’s revenue streams from new vehicle sales, parts, and accessories came in at $139 billion, a new record in the past 5 years, and was significantly up over 2021.
On the other hand, GM’s used vehicle sales totaled only $516 million in fiscal 2022 while services revenue registered $4.8 billion.
A trend worth mentioning is the rising revenue of GM’s new vehicle sales and services revenue as well as the decreasing revenue of used vehicle sales in the past 5 years.
For instance, GM’s used vehicle sales have declined from $3.4 billion reported in fiscal 2018 to only $516 million as of 2022, representing a decline of more than 80% in just 5 years.
New Vehicle, Used Vehicle And Services Revenue In Percentage
GM’s revenue streams from new vehicles, parts, and accessories sales make up more than 90% of the revenue of the automotive segment and this ratio hit 96% in fiscal 2022, the highest ratio that has ever been recorded.
On the other hand, GM’s revenue streams from used vehicle sales contribute to less than 3% of the total revenue of the automotive sector and this ratio declined to only 0.4% as of fiscal 2022.
GM’s services revenue made up a considerable 3.3% of the total revenue of the automotive segment in fiscal 2022, and this ratio had remained more or less the same in the past 5 years.
Leasing, Finance And Other Revenue
GM Financial, the captive finance arm of General Motors, earns its revenue from 3 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 $7.8 billion USD as of fiscal 2022.
Despite being the largest among the 3 revenue streams, GM Financial’s leased vehicle income has been on the decline since fiscal 2018 and reached the lowest level as of fiscal 2022.
On the other hand, GM Financial’s finance-charged income has been on the rise, with the revenue figure topping $4.5 billion as of fiscal 2022, the highest level that has ever been reported over the past 5 years.
Leasing, Finance And Other Revenue In Percentage
GM Financial earns the biggest part of its revenue from lease vehicle income, at 61% of the segment’s total sales revenue in fiscal 2022.
However, this ratio has been on the decline from 71% in 2018 to a record low of 61% as of fiscal 2022.
On the other hand, GM Financial’s second-biggest revenue stream is from finance-charged income and it contributes to 35% of the segment’s total revenue in fiscal 2022.
This ratio has been on the rise from 26% in 2018 to 35% in 2022, the highest level that has ever been recorded.
To recap, General Motors had the best results in 2022, with revenue as well as profit figures topping record highs.
Can GM’s 2022 result be replicated in 2023?
Most likely, given that the TTM revenue and TTM automotive revenue were also in record figures in the first half of 2023.
In addition, GM has so far not lowered its guidance since the beginning of fiscal 2023.
References and Credits
1. All financial figures presented in this article were obtained and referenced from GM’s SEC filings, earnings releases, presentations, investor letters, etc, which are available in General Motors Investor Relations.
2. GMC Sierra HD Denali image is used under creative commons license and sourced from the following websites: GMC Sierra.
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