Here’s how much profit GM makes on full-size trucks and SUVs: Unexpected!
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Thanks to strong demand and high profit margins, it’s really no secret that full-size trucks and SUVs serve as cash cows for General Motors. With this in mind, here’s how much GM profits on average from each of these vehicles.
According to a new report from Reuters, The General has the potential to earn as much as $7.5 billion from sales of ICE-powered trucks and SUVs through 2035. This comes out to $10,678 per vehicle on average before accounting for interest and taxes.
These impressive profit margins serve as strong motivators for the Detroit-based automaker to continue investing in its ICE-powered future. To this end, General Motors recently announced a new $500 million investment into the GM Arlington plant in Texas to facilitate production of The General’s next generation of full-sized SUVs. This new investment will be used to introduce new tooling and equipment in the Arlington plant’s stamping, body shop and general assembly areas. Notably, the Arlington plant is considered as the most profitable plant in the world.
“Arlington produced 345,000 units in 2022, and by our estimate generated about $25 billion in revenue and $4 billion in EBIT – or about 30 percent of total company EBIT,” one analyst was quoted as saying.
For reference, EBIT stands for earnings before interest and taxes.
In another response to these high profits, General Motors is now expected to continue production of full-size trucks and SUVs up until the 2035 calendar year. This is noteworthy considering that GM has claimed it will feature a zero-emissions vehicle lineup by then. However, with the potential to earn $50 billion, or more, in profit during that time period, this development doesn’t come as much of a surprise.