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GM(GM) - 2024 Q4 - Annual Report
GMGM(GM)2025-01-28 20:40

Financial Performance - For the year ending December 31, 2025, the company expects diluted EPS between 11.00and11.00 and 12.00, net income attributable to stockholders between 11.2billionand11.2 billion and 12.5 billion, and EBIT-adjusted between 13.7billionand13.7 billion and 15.7 billion[191]. - The company's total net sales and revenue for the year ended December 31, 2024, were 187.442billion,anincreaseof9.1187.442 billion, an increase of 9.1% compared to 171.842 billion in 2023[208]. - Total net sales and revenue for General Motors increased to 157.5billionin2024,up11.4157.5 billion in 2024, up 11.4% from 141.4 billion in 2023[223]. - EBIT-adjusted for General Motors North America rose to 14.5billionin2024,anincreaseof18.114.5 billion in 2024, an increase of 18.1% compared to 12.3 billion in 2023[223]. - Net income attributable to stockholders for 2024 is 6.008billion,adecreasefrom6.008 billion, a decrease from 10.127 billion in 2023 and 9.934billionin2022[322].EBITadjustedfor2024is9.934 billion in 2022[322]. - EBIT-adjusted for 2024 is 14.934 billion, compared to 12.357billionin2023and12.357 billion in 2023 and 14.474 billion in 2022, reflecting a significant increase[322]. - The effective tax rate for 2024 is 30.0%, significantly higher than 5.4% in 2023 and 16.3% in 2022[333]. - ROIC-adjusted for 2024 is 20.8%, an increase from 16.4% in 2023 and 20.0% in 2022, indicating improved capital efficiency[337]. - The diluted earnings per share for 2024 is 7.189,comparedto7.189, compared to 10.022 in 2023 and 8.915in2022[329].SalesandMarketPerformanceTotalvehiclesalesintheU.S.fortheyearendedDecember31,2024,were2.7millionunits,representingamarketshareof16.58.915 in 2022[329]. Sales and Market Performance - Total vehicle sales in the U.S. for the year ended December 31, 2024, were 2.7 million units, representing a market share of 16.5%, an increase of 0.3 percentage points compared to 2023[194]. - Industry sales in North America for the year ended December 31, 2024, were 20.3 million units, an increase of 3.5% compared to 2023[193]. - In China, total vehicle sales were 1.8 million units for a market share of 6.9%, a decrease of 1.5 percentage points compared to 2023, amid intense price competition[196]. - General Motors' wholesale vehicle sales in North America increased to 3.5 million units in 2024, a rise of 10.1% from 3.1 million units in 2023[223]. Financial Position and Liquidity - Total Automotive available liquidity decreased slightly to 35.5 billion in 2024 from 36.3billionin2023[258].GMFinancialstotalavailableliquiditydecreasedslightlyto36.3 billion in 2023[258]. - GM Financial's total available liquidity decreased slightly to 29.3 billion in 2024 from 29.9billionin2023[276].Cruisesavailableliquiditywas29.9 billion in 2023[276]. - Cruise's available liquidity was 0.3 billion at the end of 2024, down from 1.3billionin2023,reflectingatotalchangeof1.3 billion in 2023, reflecting a total change of (1.0) billion[270]. - Average debt outstanding for GM Financial increased to 109.0billionin2024,an8.6109.0 billion in 2024, an 8.6% rise from 100.4 billion in 2023[236]. Expenses and Costs - The automotive and other selling, general and administrative expense increased to 10.6billionin2024,ariseof7.910.6 billion in 2024, a rise of 7.9% from 9.8 billion in 2023[216]. - The company reported a decrease in automotive and other cost of sales to 151.1billionin2024,down6.9151.1 billion in 2024, down 6.9% from 141.3 billion in 2023[211]. - The provision for loan losses at GM Financial rose to 1.029billionin2024,reflectinga24.61.029 billion in 2024, reflecting a 24.6% increase from 826 million in 2023[236]. - The liabilities for product warranty and recall campaigns amount to 10.6billionasofDecember31,2024[371].Theliabilitiesfordealerandcustomerallowances,claims,anddiscountstotal10.6 billion as of December 31, 2024[371]. - The liabilities for dealer and customer allowances, claims, and discounts total 7.3 billion as of December 31, 2024[372]. Investments and Strategic Initiatives - The company plans to invest approximately 10.0billionto10.0 billion to 11.0 billion in battery cell manufacturing joint ventures in 2025[239]. - The company anticipates continued investments in suppliers and strategic agreements to support its transition to electric vehicles[242]. - The company plans to cease funding Cruise's robotaxi development due to the competitive market and resource requirements[272]. - The company plans to continue its strategic activities, including the transition of certain Buick dealers as part of its EV strategy[324]. Audit and Internal Controls - The Company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria[378]. - The audit provided an unqualified opinion on the consolidated financial statements for the period ended December 31, 2024[379]. - The audit included evaluating management's estimates related to product warranty, sales incentives, and lease residual values, which involved significant judgment[372][374]. - The audit procedures included sensitivity analyses to assess the impact of changes in assumptions on the estimated liabilities[373][376]. - The Company’s internal controls over financial reporting were tested for effectiveness, ensuring reliability in financial reporting[382]. Risks and Sensitivities - The company is exposed to interest rate risks as financial assets and liabilities have different characteristics that may impact financial performance[353]. - The company’s financial risk management policy is designed to protect against risks arising from large adverse market movements on key exposures[343]. - The estimated cost accrued for recall campaigns at the time of vehicle sale is sensitive to the estimated number of recall events, with a 10% increase in the estimated take rate leading to an increase of approximately 0.4billionincosts[289].A50.4 billion in costs[289]. - A 5% relative decrease in forecast recovery rates would increase the allowance for loan losses by 0.1 billion[292]. - The estimated residual value of GM Financial's leased vehicles was $23.5 billion as of December 31, 2024, with potential depreciation expense changes based on a 1% relative change in estimated residual values[299][300].