GM Posts Quarterly Loss, Makes Plans for Potential Tariffs

General Motors (GM) reported a quarterly loss of $2.9 billion, driven by a $4 billion restructuring charge related to its struggling China business and a $0.5 billion charge for stopping funding for its Cruise robotaxi business. Despite the loss, GM's full-year earnings attributable to shareholders came in at $6.0 billion, beating the company's guidance of $5.5 billion to $6.5 billion. GM's adjusted automotive free cash flow for the year was $14.0 billion, also exceeding its guidance of $12.5 billion to $13.5 billion.



GM's 2025 financial guidance assumes a stable policy environment in North America and an estimated benefit of $0.5 billion from reduced year-over-year expenses at Cruise. The company expects capital spending of $10.0 billion to $11.0 billion, inclusive of investments in its battery cell manufacturing joint ventures. GM Chair and CEO Mary Barra and GM Chief Financial Officer Paul Jacobson hosted a conference call for investors and analysts to discuss these results.



GM's 2025 financial guidance includes anticipated capital spending of $10.5 billion to $11.5 billion, inclusive of investments in the company's battery cell manufacturing joint ventures. The company expects to share its full 2025 guidance in January. Topics of interest for investors that were not addressed earlier this month include GM's funding plans for its embattled Cruise autonomous vehicle unit, details on its China restructuring, and any updates regarding its near-term electric vehicle sales and plans.

Shares of GM are up about 36% this year as of Monday's close of $48.93. The stock has been boosted by billions of dollars in buybacks by GM, which have led to a 19% year-over-year reduction in outstanding shares. This is developing news. Please check back for additional updates.

GM's strategic planning for potential tariffs aligns with its long-term growth strategy by focusing on flexibility, adaptability, and minimizing capital expenditure until there is clarity on the U.S. administration's tariff policy. GM has been studying "multiple scenarios" to minimize the impact of tariffs on Canada and Mexico, and has been working across its supply chain, logistics network, and assembly plants to prepare for the potential impacts. The company has not altered its outlook for 2025 even as President Trump has repeatedly said the tariffs are needed to encourage manufacturers to make goods in the United States. GM has been in talks with the U.S. administration ahead of the expected Feb. 1 implementation date, but has not provided details on how the automaker will respond to the tariffs.