Leaning on a strong North American business, General Motors Co. beat expectations on Tuesday with second-quarter net income up 14% year over year to $2.9 billion on revenue of $47.9 billion, up 7%.

For the second consecutive quarter, GM increased its guidance for the year to adjusted earnings in the range of $13 billion to $15 billion, up from $12.5 billion to $14.5 billion. GM also increased its adjusted automotive free cash flow to a range of $9.5 billion to $11.5 billion, up from $8.5 billion to $10.5 billion. The financial guidance includes capital spending of $10.5 billion to $11.5 billion.

The automaker expects its net income for the year will be between $10 billion and $11.4 billion, slightly below the $10.1 billion to $11.5 billion previously forecasted.

GM reported adjusted earnings before interest and taxes of $4.4 billion, up 37% year-over-year. GM's adjusted earnings per share of $3.06 was above the average Wall Street estimate of $2.72. GM's revenue also beat the Street's average estimate of $45.3 billion. GM's net income margin for the quarter was 6.1%, up from 5.7%.

Pretax earnings in GM North America totaled $4.4 billion in the quarter. GM International's pretax earnings were $50 million. GM reported a $104 million loss of equity income in China after the automaker and its partners reported a 29% drop in sales there in the second quarter. GM and other U.S. automakers are struggling in the country with increasing domestic competition and changing consumer behavior there.

GM CFO Paul Jacobson said the automaker is reducing its inventories in China while aligning its production with demand and reducing costs.

"But it's clear that the steps that we've taken, while significant, have not been enough," Jacobson said. "So we're working closely with our JV partner to restructure the business to make it profitable and sustainable, while ensuring that it doesn't require incremental capital."

GM reported a $600 million charge in the quarter for halting production of the Cruise Origin robotaxi after deciding to instead focus on using all-electric, autonomous Chevrolet Bolts. GM's Cruise AV unit is back to testing on roads in Houston, Phoenix and Dallas after pausing service last year following a pedestrian accident that led to regulator scrutiny of the company.

For the first half of 2024, GM's net income of $5.9 billion was up 19% year over year on revenue of $90 billion, which was up 7%.

"It was truly a great first half," GM CEO Mary Barra wrote in a letter to shareholders. "And we have the products, discipline and strategies to drive future success."

The results come after GM in early July posted the best quarter for U.S. sales since the fourth quarter of 2020. GM's U.S. dealers sold 696,086 new vehicles from April through June compared with 691,978 vehicles a year ago. In the first half of 2024, GM sold 1,290,319 vehicles, down 0.4% year-over-year.

GM's second-quarter EV sales of 21,930 surpassed the previous record of 20,000 sold in the first quarter of 2023. It sold 38,355 EVs through June.

While prepping for multiple EV launches in the second half of the year, GM in June narrowed its 2024 EV production goal by at least 50,000 units to between 200,000 and 250,000, down from 300,000.

Jacobson said the move was "100% demand driven" since the automaker overcame issues it had with battery module supply and had been "on track" to produce 300,000 EVs this year.

GM expects by the fourth quarter that its EVs will be variable profit-positive, meaning it's able to cover the cost of producing the vehicles, when about 200,000 are produced.

To help reach EV profitability, GM has been increasing battery cell production at its Ultium Cells LLC plants in Spring Hill, Tennessee, and Warren, Ohio, near GM's former Lordstown Assembly plant. GM jointly owns the plants with South Korean battery supplier LG Energy Solution.

"We're rapidly scaling in cell plants one and two, and that's actually a huge component that's helping us achieve our variable profit-positive, as our cell costs continue to come down," Jacobson said.

Bloomberg reported late Sunday that LG Energy was "adjusting the speed of overall investment" at the GM/LG planned Lansing/Delta Township Ultium battery plant, which is supposed to start production early next year. GM and battery supplier Samsung SDI also have plans for a battery plant in Indiana.

Jacobson said GM has "nothing to comment on right now" when asked if the plants were on hold or canceled.

"We are really focused on scaling up at Spring Hill and continuing to keep Lordstown operating very efficiently, and we've been very pleased with the scale economies that we've gotten there," Jacobson said. "We're looking to continue to grow the portfolio."

In a statement to The Detroit News, LG Energy confirmed it's "adjusting the overall pace of investments, but we are not suspending the construction of our third joint venture facility with GM. While we are unable to provide specifics on each facility’s progress, we are taking various measures to optimize our operation according to market conditions."

Ford Motor Co. reports earnings on Wednesday and Stellantis NV reports on Thursday.

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