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GENERAL Motors has reported a loss of $US2.96 billion ($A4.76b) in the fourth quarter of 2024, a downturn from a profit of $US2.1b ($A3.38b) in the same period the previous year – a turnaround of $A8.14 billion in just three months.

The news hit shares hard but GM says it has made allowance for the loss and has predicted a stronger 2025 conditional on company assumptions of “a stable policy environment in North America”. This is a reference to the uncertain nature of the rules environment for car makers in America under President Trump.

GM CEO Mary Barra

GM CEO Mary Barra said the company will offer three new Cadillac electric vehicles and is targeting further improvements in EV profitability as this part of the business gains scale, while also seeing the full-year impact of the new petrol-powered SUVs launched in 2024.

“Of course, there is uncertainty over trade, tax, and environmental regulations and we have been proactive with Congress and the administration,” Ms Barra said.

“In our conversations, we have stressed the importance of a strong manufacturing sector and American leadership in advanced technologies. It’s clear that we share a lot of common ground, and we appreciate the dialogue.

“Whatever happens on these fronts, we have a broad and deep portfolio of ICE vehicles and EVs that are both growing market share, and we’ll be agile and execute as efficiently as possible.”

Lyriq

GM said its net income was hit by more than $US5b ($A8b) in special charges, mainly from non-cash restructuring charges and impairment of interests in certain China joint ventures, as well as charges related to the discontinuation of funding for the Cruise robotaxi business.

It said there was an estimated $US500m ($A804m) benefit from lower costs from its Cruise robotaxi business, which it stopped funding last year.

GM said it is optimistic about 2025. It has forecast a net income attributable to stockholders in the range of $US11.2b to $US12.5b ($A17.7b-$A20.1b), an adjusted EBIT of $US13.7b to $US15.7b ($A22b-$A25.25b), and an adjusted automotive free cash flow between $US11b and $US13b ($A17.7b-$A20.9b).

The outlook also includes anticipated capital spending of $US10b to $US11b ($A16b-$A17.7b), including investments in battery cell manufacturing joint ventures.

Silverado

GM last month said it would incur a writedown and restructuring charges of more than $US5b ($A8b) in relation to its underperforming Chinese joint ventures (JVs).

It said it will reduce the value of its equity stakes in the ventures by between $US2.6b and $US2.9b ($A4.18b-$A4.7b).

Despite the setback, GM’s revenue lifted by 11 per cent to $US47.7b ($A76.7b) for the quarter ending December 31, 2024, up from $US42.98b ($A69b) in the previous year.

The adjusted EBIT also reflected a positive trend, increasing by 42.8 per cent to $US2.5b ($A4b) in Q4 2024, compared to $US1.75b ($A2.8b) in the corresponding quarter of the previous year.

For the full year of 2024, the company reported a net income attributable to shareholders of $US6b ($A9.65b), which represents a 40.7 per cent decrease from the $US10.127b ($A16.3b) recorded in 2023.

However, the company’s full-year revenue was strong with a 9.1 per cent increase to $US187.442b ($A301.5b) from $US171.842b ($A276.4b) in the previous year.

GMC 1500

The adjusted EBIT for the year stood at $US14.93b ($A24b), marking a 20.9 per cent improvement from the $US12.357b ($A19.9b) reported a year earlier.

By Neil Dowling

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