Despite a dip in Q4 profit, General Motors (GM) remains optimistic, focusing on strong truck and SUV sales, along with an expected boost from electric vehicle (EV) growth.

General Motors (GM) expressed optimism for 2024, despite reporting a decline in pre-tax profit for the fourth quarter of 2023. The automaker’s net income increased by 5.2%, reaching $2.1 billion on revenues of $43 billion. However, its adjusted pre-tax profit saw a sharp drop of 54% to $1.8 billion, indicating a challenging quarter for the company.

Despite the profit dip, GM CEO Mary Barra maintained an upbeat outlook for the year ahead, stating that “consensus is growing that the US economy, the job market, and auto sales will continue to be resilient.” This confidence stands in contrast to the more cautious view expressed by Tesla CEO Elon Musk, who warned of slow growth in the EV sector, causing a significant drop in Tesla’s market value last week.

GM is positioning itself for a strong 2024 by focusing on high-demand vehicles, particularly combustion trucks and SUVs in North America, which have historically been profitable for the company. The automaker also plans to boost sales of its electric vehicles (EVs), with expectations that EV sales will rise from 7% of the US market in 2023 to 10% in 2024.

In an earnings call, GM’s Chief Financial Officer Paul Jacobson said that the company anticipates its electric vehicle operations will begin to generate variable profit by the second half of 2024, following a slower-than-expected rollout in 2023.

Barra also emphasized GM’s commitment to returning capital to shareholders, noting the $12 billion the company distributed in 2023, which included a $10 billion share buyback and a 33% increase in dividends.

With the auto industry facing both challenges and opportunities, GM’s focus on traditional vehicle segments combined with an aggressive push into the electric vehicle market will be key to the company’s performance in the year ahead.