By Kalea Hall
Detroit (Reuters)-General Motors on Tuesday posted the results of the fourth quarter of 2024 and a 2025 earnings forecast ahead of Wall Street expectations as the US automation continued to see strong consumer demand for its lorries and costly SUVs powered by gasoline.
Shares of the Detroit automaker rose 4.2% in pre -market trading.
GM sold vehicles at an average price of $ 50,000 for the year, and executives see a decrease of 1% to 1.5% in the pricing power of North America and a moderate decline in the volume of gas -powered vehicles in 2025, from it leave in a relatively strong position.
The company expects losses to narrow its battery-powered vehicles, China's business reorganization will have better results, and GM ends the development of Robotaxi at Cruise, Its autonomous vehicle unit, which will lead to savings.
The automaker is projecting a net income from $ 11.2 billion to $ 12.5 billion this year, topped up analysts' expectations of $ 10.8 billion, as calculated by LSEG.
The guidelines do not account for tariffs, cuts to the incentives of electric vehicles and tax changes, which US President Donald Trump has threatened to install.
GM is one of the most vulnerable to Trump's plans on two important fronts: EVS, where it has made aggressive investments, and tariffs, because it has significant manufacturing in Mexico and Canada, countries that Trump is targeting.
The Detroit car maker does not break down its EV losses, but said in 2024 that revenue is higher than fixed costs including labor and material, metric costs which it calls positive variable profitability. The figure does not include costs such as construction assembly lines, but sets out financial progress in the introduction of EV.
GM did not achieve its goal of 200,000 EV production and wholesale in North America in the year, ending in 189,000 wholesale units, said chief financial officer Paul Jacobson on call with reporters. GM fell its Ev Inventory from 100 days at the end of the third quarter to 70 days.
Previously, GM had predicted that EV action loss would narrow between $ 2 billion and $ 4 billion this year from unveiled levels, although Jacobson told reporters that the decline in losses is likely to be closer to the $ 2 head Billion based on a wholesale goal of 300,000 for the year.
“We think we can grow our ev. We are going to continue to see how EV adoption is moving forward in 2025,” said Jacobson.
A fourth -quarter gm revenue of $ 47.7 billion surpassed the expectations of analysts of $ 43.9 billion. The automaker's modified earnings per share of $ 1.92 in the quarter also exceeded analysts' forecasts of $ 1.89 per share.