GM's V-8 engines will ‘continue to be around for a while,’ CFO says
GM (GM) may be targeting $50 billion in sales from electric vehicles by 2025, but the automaker still sees a future where it banks money from good old-fashioned gas-powered V-8 engines.
"We continue to believe that the ICE [internal combustion engine] portfolio has really strong value," GM CFO Paul Jacobson said on Yahoo Finance Live (video above). "In fact, it's funding the transformation [to EVs]. ... They're going to continue to be around for a while as we transform our vehicles into 100% EVs by 2035."
To fuel further sales of V-8-powered autos, Jacobson signed off on a huge long-term investment plan earlier this month.
GM said it will invest $854 million into a variety of plants to build its sixth generation of small-block V-8 engines. The automaker's small-block V-8 dates back to 1954, and its fifth generation of the engine debuted in 2013.
"There's a lot of efficiencies that are coming in those new engines," added Jacobson, a Corvette-turned-Camaro ZL1 owner.
Those V-8 engines helped the automaker report a jump in profits in the fourth quarter, driven by record revenue and strong demand.
For the full year, the company reported profits of $14.5 billion, near the high end of its forecast.
Here is how GM performed compared to Wall Street estimates:
Net Sales: $43.1 billion vs. $40 billion expected
Adjusted EPS: $2.12 vs. $1.69 expected
For 2023, GM is forecasting adjusted EBIT of $10.5 billion-$12.5 billion and adjusted EPS of $6.00-$7.00. Analysts had been expecting $5.70 a share.
Shares of GM popped 8% on Friday, and the company's ticker page was the most visited on Yahoo Finance.
Yahoo Finance's Pras Subramanian contributed to this story.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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