Is Revenue From North America Driving GM’s Total Revenue Growth?

General Motors‘s (NYSE: GM) revenue comes mainly from four segments: GM North America, GM International, GM China, and Financial services. Here, Trefis analysis shows how important the North America segment is to General Motors. For detailed analysis please check our interactive dashboard – How Important is North America to General Motors? In addition, here is more Consumer Discretionary data.

General Motors recently released its Q2 2019 results on August 1, 2019. The company recorded revenue at $36.1 billion, down by 1.9% y-o-y. GM’s all new heavy duty pickups will begin shipping at the end of Q2 so we expect growth in Q3 and Q4. The earnings were recorded at $1.66, nearly flat compared to the same period of the previous year. In Q2 2019 EBIT rose only for GM North America while the other segments remained nearly flat.

How has General Motors Revenue moved and what is its forecast?

• Total Revenue increased from $147.4 billion in 2017 to $149.1 billion in 2018. Trefis estimates revenue to fall back to around $147.4 billion in 2019 due to the global auto industry slowdown.
• North America Revenue increased from $111.3 billion in 2017 to $113.8 billion in 2018. North America Segment is expected to go down a bit as the shrinking market would lower the volumes sold for the year. Expected revenue for 2019 is $110.9 billion.
• GM’s International Revenue fell from $21.9 billion in 2017 to $19.2 billion in 2018. GM’s International Operations are expected to grow a bit due to higher average revenue per vehicle. Expected Revenue for 2019 is $19.7 billion.
• GM China Revenue increased from $1.98 billion in 2017 to $2.04 billion in 2018. China is one of the biggest markets with huge potential across the world. GM is expected to continue increasing its market share and thus volume steadily across China. Expected Revenue for 2019 is $2.07 billion.
• GM Financial Revenue has seen steady growth over the last couple of years as it rose from $12.1 billion in 2017 to $14 billion in 2018. Trefis estimates the segment revenue to increase to $14.8 billion in 2019 as segment assets grow.

How has GM’s North America Revenue fared with respect to its Peers?

• GM has the highest revenue from the North America segment when compared to Ford, Daimler, and Volkswagen.
• GM’s North America revenue grew from $111.3 billion in 2017 to $113.8 billion in 2018. Trefis estimates the revenue to fall to $110.9 billion in 2019.
• Ford’s North America revenue grew from $93.5 billion in 2017 to $96.6 billion in 2018. Trefis estimates the revenue to remain flat at $96.6 billion in 2019.
• Daimler’s North America revenue fell from $55.8 billion in 2017 to $54.7 billion in 2018. Trefis estimates the revenue to rise back to around $55.6 billion in 2019.
• Volkswagen’s North America revenue fell from $45.2 billion in 2017 to $42.9 billion in 2018. Trefis estimates the revenue to rise back to around $44 billion in 2019.

What is the trend and relative contribution of North America Segment to Total Revenue and Total EBITDA for GM?

 

Thus, as discussed above, the North America segment is the highest contributor to Total Revenue and Total EBITDA of the company, which makes it a very important geography for GM’s growth.

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