General Motors (GM) reported a loss in the fourth quarter due to significant charges tied to its Chinese operations. However, the automaker still exceeded Wall Street’s expectations for both revenue and adjusted profits. Despite challenges in China, GM is strengthening its position in the electric vehicle (EV) market and maintaining strong relationships with U.S. regulators.
China Losses Weigh on GM, but Revenue Surges
GM’s financial results for the final quarter of 2024 reflected substantial write-downs related to its struggling joint ventures in China. The company had previously warned that deteriorating performance in the region would result in more than $5 billion (€4.8 billion) in restructuring charges. China’s automotive market has become increasingly competitive, with domestic manufacturers like BYD improving quality while keeping costs low. Government subsidies have further strengthened local brands, creating a tougher environment for foreign automakers like GM.
For the quarter ending December 31, GM reported a net loss of $2.96 billion (€2.84 billion), or $1.64 (€1.57) per share. A year earlier, the company posted a profit of $2.1 billion (€2.01 billion), or $1.59 (€1.52) per share. However, excluding these charges and other special items, GM earned $1.92 (€1.84) per share, beating analyst expectations of $1.85 (€1.77) per share.
Revenue climbed significantly to $47.7 billion (€45.72 billion), up from $42.98 billion (€41.12 billion) a year earlier. This result surpassed Wall Street’s forecast of $44.98 billion (€43.12 billion).
EV Expansion and Strong Worker Profit-Sharing
In a letter to shareholders, CEO Mary Barra highlighted GM’s progress in scaling electric vehicle production, noting that the company doubled its EV market share in 2024. While the China business struggled, she pointed out that the joint venture posted positive equity income before restructuring costs and that GM is working with its partner to drive further improvements.
GM also continues to reward its workforce generously. Barra announced that the company’s hourly employees in the U.S. would receive the highest profit-sharing payout in the industry, totaling over $640 million (€613.53 million). Each eligible worker will receive up to $14,500 (€13,899), equivalent to more than two months of extra pay for United Auto Workers-represented employees.
Despite uncertainty over U.S. trade policies, taxes, and environmental regulations, GM has engaged proactively with lawmakers. Barra noted that discussions with Congress and the administration of President Donald Trump have focused on strengthening domestic manufacturing and advancing American leadership in automotive technologies. “We share a lot of common ground and appreciate the dialogue,” she said.
Optimistic Outlook and New Product Launches
Wedbush analyst Dan Ives praised GM’s strong fourth-quarter performance, stating that the company is successfully navigating the challenges of the EV transition. “This was another major step in the right direction,” Ives wrote, adding that GM is effectively balancing production and profitability to sustain long-term growth.
Looking ahead, GM is set to expand its EV lineup in 2025, introducing three new Cadillac electric models: the Escalade IQ, Optiq, and Vistiq. The automaker will also see the full-year impact of its new gas-powered SUVs launched in 2024, including the Chevrolet Equinox, Chevrolet Traverse, and GMC Acadia.
Barra reaffirmed that GM remains flexible, regardless of regulatory changes in the U.S. “We have a broad and deep portfolio of internal combustion and electric vehicles, both gaining market share. We will continue to adapt and execute efficiently,” she said.
For 2025, GM expects adjusted earnings per share between $11 and $12 (€10.54 to €11.50), exceeding analysts’ projections of $10.86 (€10.41) per share. The company’s continued investment in EVs, alongside its strong traditional vehicle lineup, positions it well for future growth.