GM results and forecast top Wall Street targets thanks to gas-powered

By Finance News On Jan 28, 2025

General Motors on Tuesday posted fourth-quarter 2024 results and a 2025 earnings forecast ahead of Wall Street expectations as the U.S. automaker continued to see strong consumer demand for its pricey gasoline-powered trucks and SUVs.

GM sold vehicles at an average price of $50,000 U.S. for the year, and executives see a 1 per cent to 1.5 per cent drop in North American pricing power and a modest decline in gas-powered vehicle volume in 2025, leaving it in a relatively strong position.

The company expects losses will narrow with its battery-powered vehicles, a reorganization of the China business will lead to improved results, and GM is ending robotaxi development at Cruise, its autonomous vehicle unit, which will lead to savings.

A self-driving GM Bolt EV is seen during a media event where Cruise, GM's autonomous car unit, showed off its self-driving cars in San Francisco, California, U.S. November 28, 2017. REUTERS/Elijah Nouvelage — A self-driving GM Bolt EV is seen during a media event where Cruise, GM’s autonomous car unit, showed off its self-driving cars in San Francisco, Calif. (Elijah Nouvelage/Reuters)

The automaker is projecting net income of $11.2 billion to $12.5 billion this year, topping analyst expectations of $10.8 billion, as calculated by the London Stock Exchange Group. The guidance does not account for tariffs, cuts to electric vehicle incentives and tax changes, which U.S. President Donald Trump has threatened to impose.

GM is one of the automakers most exposed to Trump’s plans on two important fronts: EVs, where it has made aggressive investments, and tariffs, because it has substantial manufacturing in Mexico and Canada, countries that Trump is targeting.

Employees works on the line at automaker General Motors (GM) Brightdrop unit's CAMI EV Assembly, Canada's first full-scale electric vehicle manufacturing plant, in Ingersoll, Ontario, Canada December 5, 2022. REUTERS/Carlos Osorio — Employees works on the line at an Ontario GM assembly plant producing electric vehicles. (Carlos Osorio/Reuters)

The Detroit carmaker does not break down its EV losses, but said in 2024 that revenue was higher than fixed costs including labour and material costs, a metric that it calls positive variable profitability. The figure does not include costs such as building assembly lines, but indicates financial progress in the EV rollout.

GM did not meet its goal of producing and wholesaling 200,000 EVs in North America in the year, instead ending up at 189,000 units wholesale, Chief Financial Officer Paul Jacobson said on a call with reporters. GM did reduce its EV inventory from 100 days at the end of the third quarter to 70 days.

Mandatory Credit: Photo by Jeff Kowalsky/ZUMA Press Wire/Shutterstock (14994556m) General Motors CFO PAUL JACOBSON at the the Automotive Press Association event on December 11, 2024 in Detroit, Michigan. USA News, Detroit, Michigan, u.s - 11 Dec 2024 — Paul Jacobson is GM’s chief financial officer. (ZUMA Press Wire/Shutterstock)

GM previously had forecast EV operating losses would narrow by between $2 billion and $4 billion this year from undisclosed levels, although Jacobson told reporters the decline in losses was likely to be closer to the $2 billion end based on a wholesale goal of 300,000 for the year.

“We do think that we can grow our EV demand. We’re going to continue to see how EV adoption progresses in 2025,” Jacobson said.

GM’s fourth-quarter revenue of $47.7 billion surpassed analyst expectations of $43.9 billion. The automaker’s adjusted earnings per share of $1.92 in the quarter also exceeded analyst forecasts of $1.89 per share.

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