On Tuesday, General Motors achieved the fourth quarter of 2024 results and a profit forecast from 2025 before the Wall Street expectations when the US car manufacturer continued to find a strong demand from consumers for its expensive petrol trucks and SUVs.
GM sold vehicles at an average price of $ 50,000 for the year, and managers see a decline in North America price performance by 1 percent to 1.5 percent and a modest decline in the gas-powered vehicle volume in 2025, so they are relatively strong Position.
The company assumes that losses with battery-operated vehicles will narrow down to restructure the China business to improved results, and GM ends the robotaxi development in cruise, its autonomous vehicle unit, which will lead to savings.
This year, the car manufacturer is projecting a net profit of 11.2 to $ 12.5 billion and exceeded analyst expectations of 10.8 billion US dollars, as calculated by the London Stock Exchange Group. The instructions do not take into account the tariffs, cuts in incentives for electric vehicles and tax changes that US President Donald Trump has to impose.
GM is one of the car manufacturers who are exposed to Trump’s plans for two important fronts most frequently: EVS, where it has made aggressive investments and tariffs, since it has significant production in Mexico and Canada, countries to which Trump is.
The automobile manufacturer in Detroit does not dissolve its EV losses, but said that the income in 2024 was higher than the fixed costs, including work and material costs, a metric, which describes it as a positive variable profitability. The figure does not contain any costs such as construction assembly lines, but shows financial progress in the EV rollout.
GM has not reached its goal of producing and developing 200,000 electric vehicles in North America in the year, and instead landed with 189,000 units in wholesale, Chief Financial Officer Paul Jacobson said with a call with reporters. GM reduced its EV inventory of 100 days at the end of the third quarter to 70 days.
GM had previously predicted that EV operating losses this year by 2 billion US dollars and 4 billion US.
“We believe that we can expand our EV demand. We will continue to see how the EV adoption progresses in 2025,” said Jacobson.
The turnover of GM of GM of $ 47.7 billion exceeded the analyst expectations of $ 43.9 billion. The adjusted profit per share of the car manufacturer of USD 1.92 in the quarter also exceeded analyst forecasts of USD 1.89 per share.
Restructuring costs
GM reported a profit before taxes of $ 2.5 billion in the quarter, but reported a net loss of $ 3 billion, mainly due to restructuring costs of $ 4 billion in China, where it was in 4 in 4 , Lost $ 4 billion. Chinese business returned to profitability before the restructuring costs in the fourth quarter, said Jacobson.
GM and its Chinese joint venture partner “implement a wide range of restructuring initiatives that we have emphasized this year, which comprise the reduction in capacity for operation with usage levels of around 80 percent or better,” said Jacobson and added that the restructuring could be. Completed without additional capital from GM.
GM works with Saic engines in China to build Buick, Chevrolet and Cadillac vehicles.
The adjusted profit per share of $ 10.60 for the year exceeded the market expectation of USD 10.39. The turnover of GM of $ 187 billion exceeded the estimates of $ 183 billion. GM took over a fee of 500 million US dollars for its autonomous business unit Cruise in the fourth quarter.
In December, the car manufacturer announced its plans to hire the financing for the Cruise Robotaxi program after investing 10 billion US dollars in IT since 2016.
Instead, GM focuses on the provision of autonomous technology for personal vehicles and thus expects to save 500 million US dollars for cruise this year.
The results follow the sales report of GM 2024 of 2.7 million vehicles sold for the year compared to 4 percent compared to 2023.
GM sold 114,432 electric vehicles, an increase of 50 percent compared to 2023. The electrified versions of the mainstream chevrolet Equinox and the Blazer increased the EV sales of GM, as well as the Cadillac Lyriq, whereby sales with the sale of gas-powered luxury SUVs increased Excessed.
