General Motors reported an increase in earnings for the third quarter as a surge in vehicle production offset the impact of rising interest rates and higher prices for parts and materials.
The automaker said it earned $3.3 billion in profit in the period between July and September, compared with $2.4 billion in the third quarter of 2021. Revenue rose sharply, to $41.9 billion, from $26.8 billion in the year-ago period. G.M. shipped 966,000 light trucks and cars in the third quarter, a big jump from last year’s quarterly total of 536,000.
The company repeated its previous forecast that full-year profit would be between $9.6 billion and $11.2 billion.
“Demand continues to be strong for GM products and we are actively managing the headwinds we face,” Mary Barra, the automaker’s chief executive, said in a statement.
Automakers of all stripes are facing tougher market conditions as a result of inflationary pressures, the uncertain economy and production slowdowns caused by a global shortage of computer chips. A week ago, Tesla reported near-record earnings for the third quarter, but they fell short of analysts’ expectations. Ford Motor reports its third-quarter earnings on Wednesday.
Previously, G.M. said it expected that material costs would rise about $5 billion this year. Ford has said its costs would rise about $4 billion. Interest rate increases are also pushing up the cost of buying vehicles at a time when prices are at record highs.
In September, the average purchase price of a new vehicle in the United States was $47,257, according to Edmunds.com, a market researcher. The average monthly payment on new vehicles was $703 in the third quarter, from $630 a year ago.
At the same time, carmakers are racing to produce new electric vehicles. G.M. is supposed to start making an electric Chevrolet Silverado pickup truck in the first quarter, followed by electric versions of the Chevy Blazer and Equinox sport-utility vehicles later next year.