General Motors (GM) announced a record adjusted net income of $12.1 billion for 2024, signaling a robust recovery from the previous year’s costly United Auto Workers (UAW) strike.
The Detroit-based automaker anticipates even stronger results for 2025, buoyed by expanding electric vehicle (EV) production and operational improvements.
Despite this optimistic outlook, GM acknowledged potential policy headwinds from President Donald Trump’s administration that could impact its profit projections and long-term strategies.
The company faces uncertainty from proposed tariffs on automotive imports from Canada and Mexico, which could disrupt its supply chain and increase production costs. GM relies on parts from both countries and operates assembly plants there that supply vehicles to the US market.
In addition to trade concerns, Trump’s stance on reducing federal support for EVs and rolling back environmental regulations threatens GM’s decade-long shift from gasoline-powered vehicles to EVs.
“We’re having conversations broadly with the administration, internally, and with our partners to understand what we would do if the world changes dramatically,” said GM CFO Paul Jacobson. “We have an extensive playbook, but I won’t go into the details.”
Jacobson declined to specify how GM would navigate these potential regulatory changes or what automakers are seeking from the administration regarding environmental regulations, including a proposed $7,500 tax credit elimination for EV buyers.
Despite fourth-quarter losses totaling $3 billion due to restructuring in China and the discontinuation of its Cruise robotaxi business, GM’s 2024 financial performance set records. Revenue climbed 9.1% to $187.44 billion, with robust growth in both EV and traditional internal combustion engine sales.
Jacobson described the year as “outstanding,” with profit-sharing payments for GM’s 45,000 UAW members reaching a record $14,500 per worker, equivalent to more than two months’ pay.
Looking forward, GM projects a net income of $11.2 billion to $12.5 billion for 2025 and expects adjusted automotive free cash flow between $11 billion and $13 billion. Analysts noted that this guidance met or exceeded many Wall Street forecasts.
GM’s international operations faced challenges in 2024, particularly in China, where restructuring efforts led to a $4.41 billion equity loss. Despite these setbacks, GM CEO Mary Barra emphasized ongoing efforts to improve performance in partnership with China’s SAIC Motor Corp.
On the EV front, GM expects a production volume increase to 300,000 units in 2025, representing a 59% rise from the previous year. Jacobson highlighted that scale efficiencies, fixed cost absorption, and cell cost reductions would drive improved profitability for the company’s EV segment.
Barra acknowledged in a letter to shareholders that “trade, tax, and environmental regulation uncertainties” could impact GM’s business. She stressed that GM remains proactive in its engagements with Congress and the Trump administration to ensure continued American leadership in advanced technologies.
Despite regulatory challenges, Barra expressed confidence in GM’s ability to adapt:
“We have a broad and deep portfolio of internal combustion engine vehicles and EVs that are both growing market share, and we’ll be agile and execute as efficiently as possible.”
