GM earnings top forecasts despite headwinds

New York (CNN) — General Motors made more money than expected so far this year, even as union contracts reached last year increased labor costs, its customers faced higher interest rates to buy cars and its electric vehicles still aren’t turning a profit — yet.

Posted 10:31 a.m. Apr 23 — Updated 10:31 a.m. Apr 23

Chris Isidore

, CNN

CNN — New York (CNN) — General Motors made more money than expected so far this year, even as union contracts reached last year increased labor costs, its customers faced higher interest rates to buy cars and its electric vehicles still aren’t turning a profit — yet.

But GM said it expects its North American EV business to turn a profit in the second half of the year. That and strong demand for traditional gasoline-powered vehicles allowed it to raise its earnings forecast for the year.

Reaching a profit on its EV business would be a major milestone, which have yet to make the kind of cash that hybrids and gasoline-powered cars make for traditional automakers, who are planning a shift to EVs in the years ahead. GM officials said Tuesday it believes its EV offerings will be even more profitable moving into 2025, despite the slowdown in growth of demand for EVs in its home market.

This is a developing story. It will be updated.

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