General Motors published the results of the fourth quarter of 2024 on Tuesday and a forecast of profits in 2025 before the expectations of Wall Street while the American car manufacturer continued to see strong demand from consumers for its expensive trucks and SUVs with expensive petrol.
GM has sold vehicles at an average price of $ 50,000 in the United States for the year, and managers see a drop from 1% to 1.5% of the North American pricing power and a modest decrease in volume of gas vehicles in 2025, leaving it in a relatively high position.
The company expects losses to shrink with its vehicles powered by battery, a reorganization of Chinese activity will lead to improved results, and GM ends the development of Robotaxi in Cruise, its unit of autonomous vehicles, this which will lead to savings.
The automaker provides net profit of $ 11.2 billion at $ 12.5 billion this year, exceeding analysts’ expectations of $ 10.8 billion, calculated by the London Stock Exchange Group. The directives do not take into account the prices, reductions in incentives to electric vehicles and tax changes, which US President Donald Trump has threatened to impose.
GM is one of the car manufacturers most exposed to Trump’s plans on two important fronts: electric vehicles, where it has made aggressive investments and prices, because it has substantial manufacturing in Mexico and Canada, countries that countries that countries Trump is targeting.
The automaker from Detroit does not break down its losses EV, but said that in 2024 that income was higher than fixed costs, including labor and material costs, a metric that he calls a positive variable profitability. The figure does not include costs such as the construction of mounting chains, but indicates financial progress in the deployment of the VE.
GM did not achieve its objective of producing and magnifying 200,000 electric vehicles in North America during the year, which is rather in 189,000 wholesale units, said the director Paul Jacobson, a call with journalists. GM reduced its 100 -day EV inventory to the end of the third quarter to 70 days.
GM had previously planned that EV operating losses would house between $ 2 billion and $ 4 billion this year from uncompromising levels, although Jacobson told journalists that the drop in losses was probably closer to the end of 2 billions of dollars based on a wholesale target of 300,000 for the year for the year.
“We believe that we can increase our request for electric vehicles. We will continue to see how the adoption of electric vehicles is progressing in 2025,” said Jacobson.
Income from the fourth quarter of GM of $ 47.7 billion exceeded analysts’ expectations of $ 43.9 billion. The adjusted profit of the automaker by action by $ 1.92 in the quarter also exceeded analyst forecasts of $ 1.89 per share.
Restructuring costs
GM declared a profit before tax of $ 2.5 billion in the quarter, but declared a net loss of $ 3 billion, mainly due to $ 4 billion in restructuring charges in China where it lost 4.4 billions of dollars the year. The company in China returned to profitability before restructuring the costs in the fourth quarter, said Jacobson.
GM and its Chinese partner of joint venture “implement a wide range of restructuring initiatives that we have underlined this year which will include the reduction in the capacity to operate with levels of use of around 80% or better” Declared Jacobson, the addition of restructuring could be supplemented without additional capital of GM.
GM teams up with Saic Motors in China to build Buick, Chevrolet and Cadillac vehicles.
The adjusted benefit of GM per share of $ 10.60 for the year has exceeded market expectation of $ 10.39. GM’s turnover of $ 187 billion has beaten an estimates of $ 183 billion. GM won a burden of $ 500 million in the fourth quarter for its autonomous cruise trade unit.
The automaker announced in December its intention to stop funding from the Robotaxi program in Cruise after having invested $ 10 billion since 2016.
GM focuses rather on the supply of autonomous technologies for personal vehicles and plans to save $ 500 million this year on a cruise.
The results follow the GM sales report in 2024 of 2.7 million vehicles sold for the year, up 4% compared to 2023.
GM sold 114,432 electric vehicles during the year, an increase of 50% compared to 2023. The electrified versions of the Chevrolet Equinox and the general public blazer increased sales of GM electric vehicles, just like the Cadillac Lyriq with its sales exceeding luxury gas SUVs.
