GM’s New Major Crisis

GM (NYSE: GM) is in a MAJOR crisis.

Labor costs, EV delays, self-driving issues…

And now the CEO of GM’s Cruise autonomous driving division just QUIT.

It’s been a rocky year for GM to say the least.

After the contract negotiations with the United Auto Workers (UAW)…

The automaker lost a TON of money due to lost vehicle production.

In fact, according to GM CFO Paul Jacobson…

It lost roughly $800 million in pre-tax earnings – including $200 million during the third quarter.

But that’s not the only problem GM has had this year.

In mid-October, the company said it was delaying a planned electric pickup truck expansion at one of its plants…

… pushing production to late 2025 to “better manage capital investment while aligning with evolving EV demand.”

In other words: Their EVs are NOT selling as much as they expected.

That’s why GM withdrew its prior goal of building 400,000 EVs in North America by 2024.

And then you have the new Cruise robotaxi scandal.

Cruise is GM’s self-driving unit.

Last month, Cruise paused ALL autonomous activities across the country after one of its robotaxis RAN over a woman, stopped on TOP of her, and then DRAGGED her for about 20 feet before pulling over.

She suffered severe injuries from the accident.

That’s why Cruise issued a recall of all of its robotaxis…

That’s why the California DMV suspended Cruise’s testing permits for robotaxis…

And that’s why both the founder and the CEO of Cruise just QUIT.

So GM’s big bet on EVs is really not paying off.

Yours in Wealth,

Ian Wyatt