General Motors Reports Fourth Quarter Loss Due to China Charges but Exceeds Expectations with Strong EV Sales

General Motors (GM) reported a fourth-quarter loss of $3.0 billion attributable to shareholders, primarily due to significant charges related to its operations in China. These charges amounted to over $5.0 billion and were linked to the poor performance of its Chinese joint ventures, prompting a substantial write-down of assets and restructuring costs.

Despite this loss, GM exceeded analysts' expectations in terms of profit and revenue. The company reported a 21% increase in sales from the previous year, with total sales reaching 2.7 million vehicles in 2024, a 4% increase from the previous year. This growth was driven by a strong performance in the electric vehicle (EV) segment, where sales jumped 50% for the quarter and 125% for the year.

GM's adjusted EBIT for the fourth quarter was $2.5 billion, and the company maintained a full-year net income of $1.9 billion. The adjusted diluted earnings per share (EPS) for the quarter was $1.24, which, although a significant drop of 41.5% year-over-year, still beat the consensus estimate of $1.16.

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Overall, while the charges related to China had a substantial impact on GM's bottom line, the company's performance in other areas, particularly in EV sales, helped it top analysts' expectations for revenue and profit.