General Motors (NYSE: GM) delivered record adjusted pretax profits of $14.9 billion for 2024 but grappled with significant challenges in its global operations, most notably in China, and took a major step back in its autonomous vehicle strategy. Despite record profitability in its core North American market, GM’s net income plunged 41% year-over-year to $6 billion, reflecting $5 billion in special charges during the fourth quarter.

Fourth Quarter 2024 Overview

GM reported a $3 billion net loss in the final quarter of 2024, compared to a $2 billion profit in the same period of 2023. This was driven by:

  • $4 billion in restructuring and impairment charges linked to its struggling joint ventures in China.
  • $0.5 billion in charges related to the decision to cease funding Cruise’s robotaxi development, a business GM has spent years and billions of dollars building without ever generating meaningful returns.
  • Revenue for the quarter rose 11% to $47.7 billion, surpassing Wall Street estimates of $43.7 billion. Adjusted pretax profits for the quarter were $2.5 billion, a 43% increase over 2023’s strike-affected results.
A slide summarizing GM's 2024 highlights, including revenue growth, market share increases, EV profitability, and record financial results.
Despite challenges in China and restructuring costs, GM delivered record financial results in 2024, with EBIT-adjusted earnings of $14.9 billion and a strong U.S. market position.

Full-Year Results: Strong Pretax Profits, Declining Net Income

  • Global Revenue: $187 billion, up 9% from 2023, driven by strong demand for full-size pickups, SUVs, and electric vehicles (EVs).
  • Net Income: $6 billion, down sharply from $10.1 billion in 2023 due to special charges.
  • Adjusted Free Cash Flow: A record $14 billion, bolstered by disciplined cost management and profitable core operations.
  • EV Growth: GM doubled its U.S. EV market share to 12.5% and achieved variable profit positivity (revenue exceeding direct production costs) in its EV portfolio during Q4.

China Operations Under Pressure

China, GM’s second-largest market, has become a significant challenge. The company reported $17 million in equity income from its joint ventures in Q4 after three consecutive quarters of losses totaling over $347 million. The results were achieved following a massive restructuring effort, including $4 billion in charges during Q4.

China’s automotive market has been increasingly competitive, with rising local EV makers, tightening regulations, and shifting consumer preferences. GM and its Chinese partner, SAIC Motor Corp., aim to cut costs, better match production to demand, and roll out new “energy vehicles” in 2025 to regain footing.

A Chevrolet Tahoe, GMC Yukon AT4 Ultimate, and Cadillac Escalade, highlighting GM's leadership in the full-size SUV segment. Text describes increased transaction prices and segment market share.
GM continues to dominate the full-size SUV market with refreshed models, premium features, and segment-leading sales. The Cadillac Escalade remains the best-selling large luxury SUV for the 11th consecutive year.

Cruise Strategy Shift

GM announced in December that it would cease funding its Cruise robotaxi program, a move expected to save the company more than $1 billion annually. Cruise, which lost $1.7 billion in 2024, had become a financial burden with little prospect of delivering a return in the near term. Instead, GM is focusing on its Super Cruise and Ultra Cruise driver-assistance technologies for personal vehicles.

Outlook for 2025

For 2025, GM expects:

  • Net Income: $11.2 billion to $12.5 billion, a significant rebound from 2024.
  • EBIT-Adjusted: $13.7 billion to $15.7 billion, slightly below 2024 levels.
  • Adjusted Free Cash Flow: $11 billion to $13 billion.

The company’s forecast reflects expected EV profitability improvements, lower Cruise expenses, and continued strength in its North American ICE portfolio. However, challenges loom, including potential tariffs on imports from Canada and Mexico and uncertainty over U.S. EV tax credits under the Trump administration.

A red Buick Enclave, blue GMC Acadia, and gray Chevrolet Traverse, representing GM's new mid-size SUV lineup. Text highlights sales increases and premium trims.
GM reports strong sales for its redesigned mid-size SUVs, with the Chevrolet Traverse up 60% and the GMC Acadia up 58% in Q4 2024. These models feature premium trims and advanced driver assistance technologies.

North American Dominance

GM’s North American operations remain its strongest profit driver:

  • The automaker sold 2.7 million vehicles in the U.S., a 4% increase year-over-year.
  • GM maintained its #1 position in total, retail, and fleet sales in the U.S.
  • Average transaction prices exceeded $50,000, with incentives consistently below the industry average.

CFO Highlights and Risks

CFO Paul Jacobson highlighted GM’s cautious approach to pricing in 2025, budgeting for a 1% to 1.5% decline in new vehicle prices amid potential consumer price sensitivity. Despite this, Jacobson expressed confidence in the company’s ability to adapt to changing conditions, including the prospect of higher tariffs.

EV Production and Profitability

GM produced 189,000 EVs in 2024, falling short of its 200,000-unit target. The company aims to ramp up production to 300,000 units in 2025, with profitability improvements driven by scale and cost reductions. Still, the potential repeal of Biden-era EV tax credits could impact consumer demand and manufacturing incentives.

CEO Mary Barra’s Statement

In a letter to shareholders, GM CEO Mary Barra emphasized the company’s achievements in a challenging environment. “Our performance in 2024 reflects strong execution and discipline. We doubled our EV market share, delivered record adjusted pretax profits, and made strides in optimizing our China operations.”

Barra acknowledged uncertainty around trade and environmental policies but reiterated GM’s ability to respond with agility. She also highlighted upcoming product launches, including the Escalade IQ, Optiq, and Vistiq, which aim to strengthen GM’s foothold in the luxury EV market.