General Motors on Tuesday released results in the fourth quarter of 2024 and a forecast of earnings from 2025 ahead of the Wall Street expectations, as the American car manufacturer continued to see a strong consumer demand for his expensive trucks and SUVs on gasoline plants.
GM sold vehicles at an average price of $ 50,000 for a year, and the executives see that 1 percent to 1.5 percent drop in the price of North America and a modest drop in the volume of a gas drive at 2025, leaving it a relatively strong position.
The company expects the losses to narrow their batteries on the battery, the reorganization of Chinese business will lead to improved results, and GM ends Robotaxi Development in Cruise, its units of an autonomous vehicle, which will lead to savings.
The car manufacturer projects net revenue of $ 11.2 billion at $ 12.5 billion this year, extinguishing the expectations of analysts of $ 10.8 billion, calculated by the London Stock Exchange group. The guidelines do not take into account the tariffs, reduce the 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: EVS, where he invested aggressive investments and tariffs, because he has significant production in Mexico and Canada, the countries that Trump aimed at.
Detroit car manufacturer does not overthrow EV losses, but in 2024 he said that the revenue was higher than fixed costs, including the operation and material costs, a metric that calls positive variable profitability. The picture does not include costs such as the construction lines, but it indicates financial progress in the introduction of EV.
GM did not fulfill its goal of production and wholesale 200,000 EV in North America in the year, but ended up at the wholesale 189,000 units, said Paul Jacobson Cinemas at the call with reporters. GM reduced its EV inventory with 100 days at the end of the third quarter to 70 days.
GM has previously forecast losses from EV, this year would be reduced between two and $ 4 billion from undiscovered levels, although Jacobson told reporters that loss falls are likely to be closer to a two billion dollar on the basis of a wholesale goal of 300,000 for year.
“We think we can increase EV demand. We will still see how EV’s adoption is progressing in 2025,” Jacobson said.
GM’s fourth quarter of $ 47.7 billion surpassed the expectation of analysts of $ 43.9 billion. Adapted earnings per share of $ 1.92 in a quarter has also exceeded the forecast of analysts of $ 1.89 per share.
Restructuring fee
GM reported about profit before taxation of $ 2.5 billion in a quarter, but reported on a net loss of three billion dollars, mostly because of $ 4 billion in restructuring costs in China, where he lost $ 4.4 billion a year. China has returned profitability before restructuring costs in the fourth quarter, Jacobson said.
GM and his Chinese partner in a joint investment “implement a wide range of restructuring initiatives we have highlighted this year, which will include a reduction in capacity to operate with about 80 percent or better levels,” Jacobson said, adding that the restructuring could It could be completed without an additional capital from GM.
GM Partners with SAIC engines in China to build a Buick, Chevrolet and Cadillac vehicle.
GM -adapted earnings per share of $ 10.60 for a year outweighed the market expectation of $ 10.39. GM’s revenue of $ 187 billion won an estimate of $ 183 billion. GM charged $ 500 million for its autonomous business unit in the fourth quarter.
The car manufacturer has announced his plans to stop the funding of the Cruise of Robotaxi in December after investing $ 10 billion in 2016.
GM instead focuses on providing autonomous technology for passenger vehicles and expects to save $ 500 million this year on cruise.
The results followed by the GM report on sale of 2.7 million vehicles in 2024, which is 4 percent, which is 4 percent compared to 2023.
GM sold 114,432 EV in the year, which is a 50 percent increase compared to 2023. The electrified versions of the main Chevrolet Equinox and Blazer have increased GM’s EV sales, as well as Cadillac Lyriq with their luxury SUVs that outweighed the gas.
