I drive a Buick Regal, and even now I still think it has a great-looking design that stands the test of time. I’ve always liked the solid, substantial feel of American cars.
But after reading General Motors’ $GM latest earnings report, I realized that the way the company makes money today is quite different from the GM we’re used to seeing in China.
In the third quarter of 2026, GM brought in $50 billion in revenue, up just 2.9%. But adjusted automotive free cash flow rose 40% to $5.882 billion.
Most of that money still came from North America. Pickup trucks and SUVs sold well, and the region’s adjusted operating margin rose from 6.2% to 8.7%.
By contrast, GM sold just over 358,000 vehicles in China in the third quarter, compared with nearly 470,000 in the same period last year—a drop of almost 24%.
New energy vehicles now account for more than 60% of its sales in China. But competition is so intense that even when cars sell, they’re not as profitable as they used to be.
Quarterly earnings from GM’s joint ventures in China also fell from $80 million to $32 million.
GM also announced a long-term, $20 billion share repurchase plan and raised its full-year cash flow outlook.
Yet the stock fell after the earnings report. The market is worried about rising costs and the pressure of updating its model lineup.
My view is that GM isn’t in trouble; its most profitable market just isn’t China anymore.
As a Regal owner, I still have a soft spot for the brand. But from an investment perspective, what’s more worth watching is how long its high-profit North American business can keep going.
$GM
But after reading General Motors’ $GM latest earnings report, I realized that the way the company makes money today is quite different from the GM we’re used to seeing in China.
In the third quarter of 2026, GM brought in $50 billion in revenue, up just 2.9%. But adjusted automotive free cash flow rose 40% to $5.882 billion.
Most of that money still came from North America. Pickup trucks and SUVs sold well, and the region’s adjusted operating margin rose from 6.2% to 8.7%.
By contrast, GM sold just over 358,000 vehicles in China in the third quarter, compared with nearly 470,000 in the same period last year—a drop of almost 24%.
New energy vehicles now account for more than 60% of its sales in China. But competition is so intense that even when cars sell, they’re not as profitable as they used to be.
Quarterly earnings from GM’s joint ventures in China also fell from $80 million to $32 million.
GM also announced a long-term, $20 billion share repurchase plan and raised its full-year cash flow outlook.
Yet the stock fell after the earnings report. The market is worried about rising costs and the pressure of updating its model lineup.
My view is that GM isn’t in trouble; its most profitable market just isn’t China anymore.
As a Regal owner, I still have a soft spot for the brand. But from an investment perspective, what’s more worth watching is how long its high-profit North American business can keep going.
$GM