Mon Feb 03 11:00:00 UTC 2025: ## GM Reports Record Profits, Big Bonuses for Workers, and EV Profitability Milestone
**DETROIT –** General Motors (GM) announced record-setting profits and significant bonuses for its employees Tuesday, exceeding Wall Street expectations. The automaker reported adjusted pretax profits of $14.9 billion for 2024, a 21% increase year-over-year. This success will translate to substantial bonuses for salaried workers and profit-sharing checks of up to $14,500 for U.S. hourly employees.
GM’s fourth-quarter adjusted pretax profit soared 43% to $2.5 billion, despite a $4.1 billion non-cash special charge related to its restructuring in China. While this resulted in a net loss of $3 billion for the quarter, the company’s revenue rose 11% to $48 billion, exceeding analysts’ forecasts. The company’s overall global revenue for 2024 reached $187 billion, a 9% increase.
A key achievement was reaching variable profit positive status for its electric vehicles (EVs), meaning EV revenue surpasses direct production costs. GM aims to build on this success in 2025, targeting the production of 300,000 EVs. The company also saw strong sales of gasoline-powered SUVs and full-size pickups, contributing significantly to its overall profitability. GM doubled its EV market share to 12.5% since the first quarter of 2024.
While GM’s operations in China experienced losses for three quarters, they ended the year on a positive note, posting $17 million in equity income in the fourth quarter. The company attributes this turnaround to ongoing restructuring efforts aimed at improving efficiency and aligning its vehicle portfolio with consumer demand.
Despite the positive results, GM CFO Paul Jacobson noted that the company anticipates a slight decrease (1-1.5%) in new car prices in 2025. He also highlighted the need to address rising warranty costs, which increased by $400 million in 2024. The company is actively working to reduce these costs.
GM also announced the termination of its funding for Cruise autonomous taxis, aiming to reduce spending by over $1 billion annually. The automaker is now focusing on advanced driver assistance systems for personal vehicles.
Looking ahead, GM projects pretax profits between $13.7 billion and $15.7 billion for 2025, but this estimate doesn’t account for potential impacts from increased tariffs or policy changes. The company is engaging with the administration to address concerns about potential tariffs.
Analysts offer mixed perspectives on GM’s future. While some praise the company’s strong performance in areas within its control, others express caution regarding external factors such as competition, EV market dynamics, and the continued volatility of the Chinese market.
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