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General Motors (GM) has reported a loss of $2.96bn in the fourth quarter of 2024, a downturn from a profit of $2.1bn in the same period the previous year.
The automotive giant's net income was impacted by over $5bn in special charges, primarily stemming from non-cash restructuring charges and impairment of interests in certain China joint ventures, as well as charges related to the discontinuation of funding for the Cruise robotaxi business.
Last month, General Motors said it would incur a writedown and restructuring charges or over $5bn in relation to its underperforming Chinese joint ventures (JVs).
The auto major said it will reduce the value of its equity stakes in the ventures by between $2.6bn and $2.9bn.
Despite the setback, the company saw its revenue climb by 11% to $47.7bn for the quarter ending 31 December 2024, up from $42.98bn in the year ago period.
The adjusted EBIT also reflected a positive trend, increasing by 42.8% to $2.50bn in Q4 2024, compared to $1.75bn in the corresponding quarter of the previous year.
For the full year of 2024, the company reported a net income attributable to shareholders of $6bn, which represents a 40.7% decrease from the $10.127bn recorded in 2023.
However, the company's full-year revenue showed resilience, with a 9.1% increase to $187.442bn from $171.842bn in the previous year.
The adjusted EBIT for the year stood at $14.93bn, marking a 20.9% improvement from the $12.357bn reported a year earlier.
Looking ahead, General Motors has set its 2025 guidance with an optimistic outlook.
The company projects a net income attributable to stockholders in the range of $11.2bn to $12.5bn, an adjusted EBIT of $13.7bn to $15.7bn, and an adjusted automotive free cash flow between $11bn and $13bn.
"General Motors Q4 loss hits $2.96bn due to China charges" was originally created and published by Just Auto, a GlobalData owned brand.
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