General Motors on Tuesday published the results in the fourth quarter of 2024 and the forecast of earnings on 2025 before waiting for Wall Street, because the American car manufacturer still saw strong consumer demand for its expensive trucks and gasoline powered.
GM sold vehicles at an average price of USD 50,000 per year, and the management sees a decrease of 1 to 1.5 percent in North America and a slight decrease in the volume of gas powered by gas in 2025, leaving it in a relatively strong position.
The company expects the losses to narrow with battery -powered vehicles, the reorganization of the Chinese company will improve the results, and GM ends the development of Robotaksi in Cruise, an autonomous unit of vehicles, which will lead to savings.
This year, the manufacturer of net producers from USD 11.2 billion to USD 12.5 billion, withdrawing the expectations of analysts of USD 10.8 billion, calculated by London Stock Exchange. The guidelines do not include tariffs, cuts of incentives of electric vehicles and tax changes, which US President Donald Trump threatened to impose.
GM is one of the car manufacturers most exposed to Trump's plans on two important fronts: EV, in which he made aggressive investments, and tariffs, because it has significant production in Mexico and Canada, countries for which Trump is aiming.
Detroit Car Saper does not spread its EV losses, but in 2024 he said that revenues were higher than fixed costs, including labor and material costs, an indicator that calls a positive variable profitability. This number does not include such costs as building assembly lines, but indicates financial progress in the implementation of EV.
GM did not meet its goal, which is production and wholesale 200,000 EV in North America this year, instead 189,000 wholesale units end, said financial director Paul Jacobson with a conversation with reporters. GM reduced EV stocks from 100 days at the end of the third quarter to 70 days.
Earlier, GM forecasted that EV's operational losses would narrow this year by $ 2 billion to $ 4 billion from undisclosed levels, although Jacobson told reporters that the loss of losses would probably be closer to the end of $ 2 billion based on a wholesale goal of $ 300,000 per year.
“We think that we can increase our demand for EV. We will continue to see how EV adoption progresses in 2025. ” Jacobson said.
GM revenues in the fourth quarter of USD 47.7 billion exceeded the expectations of analysts of USD 43.9 billion. The corrected profit of the manufacturer per share in the amount of USD 1.92 in this quarter exceeded the forecasts of analysts of USD 1.89 per share.
Fees for restructuring
GM reported a profit before tax in the amount of $ 2.5 billion in this quarter, but reported a net loss of $ 3 billion, mainly due to $ 4 billion of restructuring fees in China, where he lost $ 4.4 billion this year. Jacobson said that the Chinese company returned to profitability before restructuring fees in the fourth quarter.
GM and its Chinese partner Joint Venture “implement a wide range of restructuring initiatives, which we emphasized this year, which include a reduction in the ability to handle the levels of use of about 80 percent or better,” said Jacobson, adding that restructuring can be completed without additional capital with GM .
GM works with Saic Motors in China to build Buick, Chevrolet and Cadillac vehicles.
The corrected GM profit per share of USD 10.60 per year exceeded market expectations of USD 10.39. GM revenues in the amount of $ 187 billion in the amount of $ 183 billion. GM took $ 500 million in the fourth quarter for its autonomous business unit.
In December, the car manufacturer announced his plans to stop financing the Cruise Robotaxi program after investing in it $ 10 billion from 2016.
Instead, GM focuses on ensuring autonomous technology for personal vehicles and expects to save $ 500 million on a cruise this year.
The results comply with the sales report in 2024. 2.7 million vehicles sold per year, by 4 percent compared to 2023.
GM sold 114 432 EV this year, by a 50 % increase from 2023. The electrified versions of the mainstream Chevrolet Equinox and Blazer increased the sales of EV GM, just like Cadillac Lyriq with its sale exceeding the luxury gas powered by gas.