General Motors swung to a loss in the fourth quarter on huge charges related to China, but still topped profit and revenue expectations on Wall Street.
Last month GM cautioned that the poor performance of its Chinese joint ventures would force it to write down assets and take a restructuring charge totaling more than $5 billion in the fourth quarter.
China has become an increasingly difficult market for foreign automakers, with BYD and other domestic companies raising the quality of their vehicles and reducing costs. The country has subsidized its automakers.
For the three months ended Dec. 31, GM lost $2.96 billion, or $1.64 per share. A year earlier the company earned $2.1 billion, or $1.59 per share.
Stripping out the charges and other items, GM earned $1.92 per share in the quarter. That topped the $1.85 per share that analysts surveyed by FactSet predicted.
Revenue climbed to $47.7 billion from $42.98 billion, beating Wall Street's estimate of $44.98 billion.
In a letter to shareholders, CEO Mary Barra said that GM doubled its electric vehicle market share over the course of 2024 as it scaled production. She noted that China had positive equity income in the fourth quarter before restructuring costs and that GM is taking steps with its partner to improve from there.“In our conversations, we have stressed the importance of a strong manufacturing sector and American leadership in advanced technologies,” she said. “It’s clear that we share a lot of common ground, and we appreciate the dialogue.”
This year, GM will offer three new Cadillac EVs, the Escalade IQ, Optiq and Vistiq. Barra said that the automaker will also see the full-year impact of new gas-powered SUVs launched in 2024, which includes the Chevrolet Equinox, Chevrolet Traverse and GMC Acadia.
Barra noted that regardless of what happens in the U.S., GM has “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.”
Looking ahead, GM anticipates 2025 adjusted earnings in a range of $11 to $12 per share. Analysts surveyed by FactSet are calling for full-year earnings of $10.86 per share. and environmental regulations in the United States and said that GM has been proactive with
