Solid GM results overshadowed by latest jump in commodity costs

General Motors (GM) announced Q3 profits of US$3.3 billion, nearly double the previous year, despite rising commodity costs. The conflict between the US and Iran has driven up prices for copper, steel, and diesel, adding US$400 million to GM's expenses for 2026. CEO Mary Barra attributed much of the increase to inflation over the past 10 weeks.

Revenues grew 2.9% to $50.1 billion, with average vehicle prices reaching $52,000, reflecting strong demand for trucks and luxury vehicles. GM plans to launch new models of the 2027 Chevrolet Silverado and GMC Sierra in the near future. The company expects a challenging year, forecasting full-year adjusted earnings between $12.75 and $13.75 per share, though this is below Wall Street's projections.

GM has slowed its EV expansion following US regulatory changes but will release more details about hybrid vehicles soon. The company's new US$20 billion share buyback plan has sparked criticism from UAW president Shawn Fain, who accused GM of prioritizing Wall Street over workers.