GM's Gas-Powered Trucks and SUVs Drive Strong Results, Top Wall Street Targets

General Motors (GM) reported full-year 2024 net income attributable to shareholders of $6.0 billion and EBIT-adjusted of $14.9 billion, surpassing Wall Street targets. The company's gas-powered trucks and SUVs played a significant role in driving this strong performance. In the third quarter of 2023, GM's total sales were up 21% year-over-year, with trucks and SUVs leading the way.



GM's success in the truck and SUV segment can be attributed to several factors:

1. Diverse portfolio: GM offers a wide range of trucks and SUVs, catering to various customer preferences and needs. This diversity helps attract a broader customer base and increases market share.
2. Strong demand for trucks: GM's trucks, particularly the Chevrolet Silverado and GMC Sierra, are popular among commercial fleet customers, daily rental car companies, and individual buyers. The demand for trucks remains robust due to their versatility and utility.
3. Redesigned portfolio: GM has invested in redesigning its truck and SUV lineup, which has helped maintain their competitiveness in the market. The refreshed models often come with improved features, technology, and fuel efficiency, appealing to a wider range of customers.
4. Effective cost management: GM has been successful in managing costs, which helps maintain profitability even in a competitive market. The company's focus on cost reduction and efficiency has contributed to its strong financial performance.



GM's electric vehicle (EV) offerings also play a crucial role in its overall strategy, complementing its gas-powered lineup. The company's diverse EV portfolio, strong sales, and leadership in the EV market demonstrate the importance of EVs in GM's long-term success. However, it is the gas-powered trucks and SUVs that have driven GM's recent financial performance and topped Wall Street targets.

As GM looks ahead to 2025, the company expects earnings per share of about $11.50, up from $10.60 in 2024. This projected increase is better than the current Wall Street projection of $10.80. The primary drivers of GM's projected growth in 2025 include a stable policy environment in North America, reduced year-over-year expenses at Cruise, and investments in battery cell manufacturing joint ventures.

In conclusion, GM's gas-powered trucks and SUVs have been instrumental in driving the company's strong financial performance and topping Wall Street targets. As GM continues to invest in its EV portfolio and expand its offerings, the company's diverse product lineup and effective cost management strategies will likely continue to drive growth and success in the coming years.