General Motors (GM) reported third quarter earnings, topping Wall Street estimates on the top and bottom lines. Revenue reached $48.76 billion, beating estimates of $44.69 billion per Bloomberg consensus. Adjusted earnings per share came in at $2.96, surpassing the $2.43 that was expected. The automaker also raised its full-year outlook for the third time this year.

General Motors CFO Paul Jacobson joins Yahoo Finance Executive Editor Brian Sozzi to dive into the results.

Jacobson emphasizes that GM's strong earnings are "a testament to the product portfolio." He points out that the company is successfully producing vehicles that resonate with customers and is gaining market share while maintaining higher pricing discipline than competitors — a strategy that has remained "a consistent theme" throughout 2024.

"Our primary focus remains keeping the customer at the front and center of everything we do," Jacobson explains, noting that while consumer demand has remained robust, affordability challenges persist due to inflation. However, with the Federal Reserve expected to continue in its rate-cutting cycle, he expects "that to create some momentum for us as we head into 2025."

Jacobson highlights the company's diverse product range: "When you look at our portfolio, we have everything from the Cadillac Escalade to the new Corvette ZR1."

He explains that this range of vehicles ensures affordability across various income levels and consumer segments: "The team is really taking to heart driving efficiency while still building a quality portfolio across all price ranges for our customers, and that's really paying off for us."

Regarding General Motors' inventory management, Jacobson outlines the automaker's target of maintaining between 50 and 60 days of vehicle supply by the end of 2024. With the fourth quarter traditionally being "a peak selling season," he explains that production must be scaled accordingly to meet anticipated demand.

As Jacobson puts it, the goal is "getting the right vehicles to the right dealers and into the hands of the right customers at the right time." However, he adds, "What we don't want to do is overproduce just to hit some production efficiencies and then end up with a significant amount of inventory that's difficult to move. So pacing ourselves with the customer and keeping the customer front and center is what's critically important for our success."

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This post was written by Angel Smith