American auto giant General Motors (GM) reported a record adjusted operating profit in 2024, despite a drop in net profit due to the restructuring of its business in China. Higher car prices and lower inventory levels were the main factors that allowed the company to achieve such results.

According to the Financial Times, GM earned $ 14.9 billion in adjusted operating profit before interest and taxes in 2024, which is 21% more than in 2023. The company's total revenue grew by 9%, reaching $ 187 billion. This year was also a record for GM in terms of earnings per share and free cash flow.

One of the main factors in the company's success is selling cars at higher prices and with lower discounts than competitors. Consumer incentives were also lower, helping to drive average transaction prices above the industry average. This allowed GM to maintain solid financial results despite challenges in some market segments.

In 2024, the company sold 2.7 million vehicles in the United States, up 4% from 2023, its highest level since 2019. This was due to strong demand for GM products and a successful sales strategy aimed at maintaining competitiveness in a difficult market.

However, GM's net income in 2024 fell 41% to $6 billion. The main reasons were restructuring costs in China and the abandonment of investments in the development of autonomous vehicles through Cruise. In December 2024, GM announced the closure of several of its plants in China and the reduction of its model range in an attempt to adapt to competition from local manufacturers.

The company’s total expenses in the fourth quarter of 2024 exceeded $5 billion. Of this, $2.9 billion was a loss from the write-off of its stake in Chinese joint ventures, and an additional $2.7 billion was spent on restructuring its Chinese business. Despite this, GM shares rose by almost 50% for the year, significantly exceeding the average growth of the S&P 500 index (24%).

In 2025, GM forecasts adjusted operating income in the range of $13.7 billion to $15.7 billion, and net income could be from $11.2 billion to $12.5 billion. The company has continued to buy back shares since 2022, which allows it to maintain a high level of confidence in its financial results.