GM Q4 2024 revenue

GM Reports Loss in Q4 2024 but Exceeds Revenue Expectations

42 views

General Motors (GM) reported a fourth-quarter loss due to significant restructuring charges in China but still exceeded Wall Street’s expectations for revenue and adjusted earnings. The automaker remains focused on expanding its electric vehicle (EV) market presence and strengthening its U.S. operations.

China Challenges Weigh on Profits, But Revenue Climbs

GM faced financial headwinds in the final quarter of 2024 due to its struggling joint ventures in China. Increased competition from local automakers like BYD, supported by government subsidies, has made the Chinese market more difficult for foreign brands. As a result, GM had to write down assets and take a $5 billion (€4.8 billion) restructuring charge.

Despite these challenges, GM’s revenue surged to $47.7 billion (€45.72 billion), up from $42.98 billion (€41.12 billion) in the same period last year. This figure also surpassed analysts’ predictions of $44.98 billion (€43.12 billion).

The company reported a net loss of $2.96 billion (€2.84 billion), or $1.64 (€1.57) per share, compared to a profit of $2.1 billion (€2.01 billion) the previous year. However, after excluding special charges, GM earned $1.92 (€1.84) per share, beating Wall Street’s forecast of $1.85 (€1.77).

EV Growth, Worker Bonuses, and U.S. Policy Engagement

CEO Mary Barra highlighted GM’s progress in the EV sector, noting that the company doubled its market share in 2024 as production ramped up. While the China market remains challenging, Barra pointed out that GM’s joint venture there generated positive equity income before restructuring costs. The company is actively working with its partner to drive future improvements.

GM continues to lead the industry in employee profit-sharing. The company will distribute more than $640 million (€613.53 million) in bonuses to its hourly workers. Each eligible employee will receive up to $14,500 (€13,899), equivalent to over two months of additional pay for United Auto Workers-represented employees.

Amid regulatory uncertainty in the U.S., GM has maintained close communication with policymakers. Barra emphasized the importance of collaboration with Congress and President Donald Trump’s administration, stating, “We have reinforced the need for a strong manufacturing sector and American leadership in automotive innovation. We share common ground and appreciate these discussions.”

GM’s Future: New EV Models and Financial Outlook

Analyst Dan Ives of Wedbush praised GM’s resilience in a challenging EV market, calling the company’s performance “another strong step forward.” He noted that GM is successfully balancing EV expansion with profitability, positioning itself for sustained growth.

In 2025, GM will launch three new Cadillac electric models: the Escalade IQ, Optiq, and Vistiq. Additionally, the automaker expects strong sales from its latest gas-powered SUVs, including the Chevrolet Equinox, Chevrolet Traverse, and GMC Acadia.

Barra reiterated GM’s commitment to flexibility in an evolving regulatory landscape. “Regardless of policy changes, we have a broad lineup of internal combustion and electric vehicles gaining market share. We will remain agile and execute efficiently,” she stated.

Looking ahead, GM forecasts 2025 adjusted earnings between $11 and $12 per share (€10.54 to €11.50), exceeding analyst projections of $10.86 (€10.41). With its expanding EV lineup, strong revenue performance, and strategic investments, GM is well-positioned for continued success.