General Motors (GM) posted a loss in the fourth quarter due to substantial charges linked to its Chinese operations. However, the automaker still outperformed Wall Street expectations in revenue and adjusted earnings. Despite setbacks in China, GM continues to expand its electric vehicle (EV) market presence and strengthen its position in the U.S.
China Market Pressures GM’s Profits, But Revenue Surges
GM’s fourth-quarter performance was impacted by mounting challenges in China, where domestic automakers like BYD are gaining market share with lower costs and improved vehicle quality. The Chinese government’s support for local manufacturers has further intensified competition for foreign brands like GM. As a result, the company incurred a $5 billion (€4.8 billion) restructuring charge.
For the three months ending December 31, GM reported a net loss of $2.96 billion (€2.84 billion), or $1.64 (€1.57) per share, compared to a profit of $2.1 billion (€2.01 billion), or $1.59 (€1.52) per share, a year earlier. Excluding special charges, GM posted adjusted earnings of $1.92 (€1.84) per share, surpassing analyst expectations of $1.85 (€1.77).
Despite these setbacks, GM’s revenue climbed to $47.7 billion (€45.72 billion), up from $42.98 billion (€41.12 billion) in the previous year. This result exceeded Wall Street’s forecast of $44.98 billion (€43.12 billion), highlighting GM’s strong domestic performance.
EV Growth, Worker Bonuses, and Regulatory Engagement
In a letter to shareholders, CEO Mary Barra highlighted GM’s progress in the EV sector, noting that the company doubled its EV market share in 2024. While China remains a challenging market, Barra pointed out that GM’s joint venture in the country still generated positive equity income before restructuring costs. The company is working with its local partner to drive improvements.
GM continues to lead in employee profit-sharing. Barra announced that the company will distribute more than $640 million (€613.53 million) in profit-sharing bonuses to hourly workers. Eligible employees will receive up to $14,500 (€13,899) each, an amount equivalent to over two months of extra wages for United Auto Workers-represented employees.
Despite ongoing uncertainty over U.S. trade policies, taxes, and environmental regulations, GM has actively engaged with lawmakers. Barra emphasized the company’s open discussions with Congress and the administration of President Donald Trump. “We have stressed the importance of a strong manufacturing sector and America’s leadership in automotive innovation. We share common ground and value the ongoing dialogue,” she said.
Looking Ahead: New Models and Growth Projections
Wedbush analyst Dan Ives described GM’s fourth-quarter performance as “another major step in the right direction,” noting that the company is successfully balancing EV expansion with profitability. He emphasized that GM’s ability to navigate industry challenges positions it well for long-term growth.
In 2025, GM plans to launch three new Cadillac EVs: the Escalade IQ, Optiq, and Vistiq. Additionally, the automaker expects continued momentum from its latest gas-powered SUVs, including the Chevrolet Equinox, Chevrolet Traverse, and GMC Acadia.
Barra reaffirmed GM’s adaptability amid shifting industry dynamics. “Regardless of regulatory changes in the U.S., we have a diverse portfolio of internal combustion and electric vehicles gaining market share. We will remain agile and execute efficiently,” she stated.
For 2025, GM projects adjusted earnings per share between $11 and $12 (€10.54 to €11.50), surpassing analyst expectations of $10.86 (€10.41). With a growing EV lineup, strong revenue performance, and strategic investments, GM remains well-positioned for future success.
