General Motors announced this morning that their Q2 earnings dropped 42.1% when they released their earnings today, posting a net income of US$2.4 billion or $1.60 per share vs. $2.8 billion or $1.74 last year during a record quarter in 2016. Net income was negatively impacted by slumping car sales and the fact that GM sold their Opel and Vauxhall operations to PSA Group of Europe for a loss of $770 million.
Excluding their discontinued operations, General Motors beat Wall Street expectations with better-than-expected quarterly net profit from their continuing operations—how about that. Earnings came in at $1.89, beating expectations of $1.69 for the quarter. GM also repurchased $1.5 billion in common stock throughout the quarter and paid out $600 million in dividends to shareholders.
GM also announced that it would shut down, temporarily, production at some facilities and instead increase production of its increasingly popular crossover models. The company expects to build 150,000 fewer vehicles in the second half of the year than the first due to the decline in sales across the entire automotive market. There have also been reports that GM may eliminate six underperforming models from its lineup by 2020, including the Buick LaCrosse, the Cadillac CT6, the Cadillac XTS, the Chevrolet Impala and Sonic, and the Chevrolet Volt hybrid model that the company touted on its initial launch.
To capitalize on the popularity of crossover vehicles in the United States, GM also stated that they will be launching a new GMC Terrain, Chevrolet Traverse, and Buick Enclave, and introduce the Chevrolet Bolt EV through the remainder of 2017. Concurrently, GM China plans to introduce 10 new and updated models, and Chevrolet will launch the Equinox SUV in Brazil. On the technology front, GM also announced that they are the first company to use mass-production methods to construct 130 autonomous Chevrolet Bolt EV test vehicles, increasing its self-driving test fleet to 180.