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General Motors Company (GM) designs, builds, and sells trucks, crossovers, cars, and automobile parts, and provides software-enabled services and subscriptions worldwide . The company operates through segments such as GM North America (GMNA) and GM International (GMI), marketing vehicles under brands like Buick, Cadillac, Chevrolet, and GMC . GM is also investing in electric vehicles (EVs) and autonomous vehicles (AVs), with a focus on expanding their EV portfolio through their Ultium architecture . Additionally, GM offers automotive financing services through its GM Financial segment, contributing significantly to its revenue and profitability .
- GM North America (GMNA) - Designs, builds, and sells vehicles under the Buick, Cadillac, Chevrolet, and GMC brands in North America.
- GM International (GMI) - Markets vehicles under the Buick, Cadillac, Chevrolet, Baojun, and Wuling brands in international markets, primarily in China.
- GM Financial - Provides automotive financing services, significantly contributing to GM's revenue and profitability.
- Electric Vehicles (EVs) - Invests in and expands the EV portfolio using the Ultium architecture, aiming for a significant increase in production capacity.
- Cruise - Develops and commercializes autonomous vehicle technology.
- Given the headwinds in China and the competitive environment, how specifically do you plan to make your Chinese joint ventures sustainable and profitable, and what restructuring actions are you considering?
- With the EV market becoming increasingly competitive, and considering your goal to make EVs profitable on an EBIT basis quickly, what are the main obstacles you foresee in achieving this, and how do you plan to overcome them?
- Can you elaborate on the rationale behind seeking external funding for Cruise when GM has sufficient capital, and how will this impact your control over Cruise's strategic direction?
- As you expect 2025 results to be in a similar range to 2024, can you provide more detail on the specific tailwinds and headwinds, such as the impact of cost inflation and pricing pressures, that underpin this outlook?
- With the anticipated decrease in adjusted EBIT in Q4 compared to Q3, can you break down the major factors contributing to this decline, and how do you plan to mitigate similar impacts in the future?
Recent developments and announcements about GM.
Financial Reporting
- Net Income: $6.0 billion, significantly below the guidance range of $10.4 billion to $11.1 billion, primarily due to special charges.
- EBIT-Adjusted: $14.9 billion, within the guidance range of $14.0 billion to $15.0 billion.
- Revenue: $187.4 billion, a 9.1% increase compared to 2023.
- Earnings Per Share (EPS):
- Diluted EPS: $6.37.
- Diluted EPS-Adjusted: $10.60, a 38% increase from 2023.
- Automotive Free Cash Flow: $14.0 billion, exceeding the guidance range of $12.5 billion to $13.5 billion.
- Net Income: Loss of $3.0 billion, driven by over $5 billion in special charges, including:
- $4 billion in non-cash restructuring charges and impairments related to China joint ventures.
- $0.5 billion in charges from halting funding for the Cruise robotaxi business.
- EBIT-Adjusted: $2.5 billion, a 42.8% increase compared to Q4 2023.
- Revenue: $47.7 billion, up 11% year-over-year.
- Net Income: Expected to range between $11.2 billion and $12.5 billion.
- EBIT-Adjusted: Projected between $13.7 billion and $15.7 billion.
- EPS-Diluted: Estimated at $11.00 to $12.00.
- Adjusted Automotive Free Cash Flow: Anticipated between $11.0 billion and $13.0 billion.
- GM's North America EBIT-Adjusted Margin improved to 9.2% in 2024, reflecting strong performance in its core market.
- The company faced significant challenges in China, with equity income from joint ventures declining by $4.4 billion in 2024.
- GM's decision to halt funding for the Cruise robotaxi business reflects a strategic shift in its autonomous vehicle operations.
- GM continues to invest heavily in its electric vehicle (EV) strategy, with capital expenditures of $10.8 billion in 2024, including investments in battery cell manufacturing joint ventures.
Earnings Report
General Motors (GM) Earnings Results for 2024 and 2025 Guidance
On January 28, 2025, General Motors (GM) released its full-year 2024 earnings results and provided guidance for 2025. Below are the key highlights:
2024 Financial Performance
Fourth Quarter 2024 Highlights
2025 Financial Guidance
Key Trends and Strategic Updates
Conference Call Details
GM's Chair and CEO Mary Barra and CFO Paul Jacobson hosted a conference call at 8:30 a.m. ET on January 28, 2025, to discuss these results. An audio replay is available on GM's Investor Relations website.
For more details, visit GM's Investor Relations page or refer to the company's earnings release.
Auditor Changes
General Motors (GM) Auditor Change: On September 25, 2017, GM's Audit Committee approved the engagement of Ernst & Young LLP (EY) as the new independent registered public accounting firm for the fiscal year ending December 31, 2018. Deloitte & Touche LLP will continue as the auditor for the fiscal year ending December 31, 2017. This change followed a competitive selection process .
Financial Actions
- Dividend Increase: 33% increase in common stock dividend starting January 2024.
- Quarterly Dividend: Increase by $0.03 per share, beginning in Q1 2024.
- ASR Program: $10 billion accelerated share repurchase program to be executed by Bank of America, Goldman Sachs, Barclays, and Citibank .
Dividend Policy
General Motors (GM) Announces Dividend Increase
On November 29, 2023, General Motors Co. (NYSE: GM) announced a significant change in its dividend policy. The company plans to increase its common stock dividend by 33%, starting with the January 2024 declaration. This increase will raise the quarterly dividend by $0.03 per share, beginning in the first quarter of 2024 .
Additionally, GM has announced a $10 billion accelerated share repurchase (ASR) program, which will commence immediately. The ASR program is expected to conclude in the fourth quarter of 2024 .
**Key Details: **
For more information, you can visit GM's official website .