**General Motors Reports $2.96 Billion Loss in Q4 Due to China-Related Charges**
General Motors (GM) experienced a significant loss in the fourth quarter, primarily due to substantial charges associated with its operations in China. Despite this setback, the automaker exceeded Wall Street’s expectations for both profit and revenue. For the quarter ending December 31, 2024, GM reported a loss of $2.96 billion, or $1.64 per share, compared to a profit of $2.1 billion, or $1.59 per share, during the same period last year.
The company’s revenue rose to $47.7 billion, up from $42.98 billion, surpassing analysts’ estimates of $44.98 billion. In December, GM had warned that the underperformance of its Chinese joint ventures would necessitate asset write-downs and a restructuring charge exceeding $5 billion for the fourth quarter.
In 2024, GM sold vehicles at an average price of $50,000, and executives anticipate a slight decline of 1% to 1.5% in North American pricing power, along with a modest decrease in sales of gas-powered vehicles in 2025. GM’s CEO, Mary Barra, noted that the company doubled its electric vehicle market share throughout 2024 as it ramped up production. She also mentioned that China contributed positively to equity income in the fourth quarter before accounting for restructuring costs, and GM is collaborating with its partner to enhance performance in that market.
Addressing concerns over trade, tax, and environmental regulations in the U.S., Barra emphasized the importance of a robust manufacturing sector and American leadership in advanced technologies during discussions with the Trump administration.
GM’s CFO, Paul Jacobson, indicated that the company has a comprehensive strategy in place should tariffs be imposed, and it has already begun relocating vehicles from its international inventory in Mexico and Canada to the U.S. This year, GM plans to introduce three new Cadillac electric vehicles: the Escalade IQ, Optiq, and Vistiq. For 2025, GM projects adjusted earnings between $11 and $12 per share.
