GM reports decline for 1Q
General Motors Co. reported a 58.7 percent year-over-year decline in income for the first quarter of 2018.
The Detroit automaker brought in $1.1 billion in income from $36.1 billion of revenue during the first quarter of 2018.
“Results this quarter were in line with our expectations with planned, lower production in North America related to the transition to our all-new Chevrolet Silverado and GMC Sierra. We are on plan to deliver another strong year in 2018,” said Mary Barra, chairwoman and CEO, in a statement.
GM’s earnings were impacted by the cost of restructuring its South Korea business.
The company will cease production and close its Gunsan, Korea, plant at the end of May.
The company recorded a $924 million charge for the restructuring.
During the quarter, GM sold 715,794 vehicles in the U.S., up 4 percent ahead of an estimated industry increase of about 2 percent.
The Chevrolet Bolt EV, Equinox, Traverse and Trax; Buick Encore and Envision; GMC Terrain; and Cadillac XT5 all set delivery records in the first quarter, the company said.
Meanwhile, the Chevrolet Cruze, which is built at the GM Lordstown Assembly Complex, saw a 26 percent year-over-year decline from January through March. In total, 39,855 Cruzes were sold, down from 53,923 sold during the first quarter of 2017.
Sales declines for the Cruze, a compact car, led the automaker to announce the elimination of the second shift at the plant in mid-June.