General Motors (GM) reported strong Q1 earnings with revenues of $32.5bn, almost unchanged vs. the same period last year while net profits stood at $3bn compared to $294mn last year. The net income and EBIT margins saw a significant improvement at 9.3% and 13.6% in 1Q2021 vs. 0.9% and 3.8% in 1Q2020 respectively. GM guided for solid earnings this year forecasting up to $11bn in adjusted pretax profits, and adjusted automotive free cash flow of $2bn for 2021. The forecast factored in the impact of the chip shortage, including a hit of $1.5-2.0bn to earnings and a decrease of $1.5-2.5bn to free cash flows.
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