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What changed in General Motors's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of General Motors's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+401 added−402 removedSource: 10-K (2025-01-28) vs 10-K (2024-01-30)

Top changes in General Motors's 2024 10-K

401 paragraphs added · 402 removed · 299 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

61 edited+34 added−43 removed64 unchanged
Biggest changeTotal vehicle sales data represents management's good faith estimate based on sales reported by our dealers, distributors and joint ventures; commercially available data sources such as registration and insurance data; and internal estimates and forecasts when other data is not available. 2 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands): Years Ended December 31, 2023 2022 2021 Industry GM Market Share Industry GM Market Share Industry GM Market Share North America United States 15,981 2,595 16.2 % 14,242 2,274 16.0 % 15,410 2,218 14.4 % Other 3,592 460 12.8 % 3,066 406 13.2 % 3,081 355 11.5 % Total North America 19,573 3,055 15.6 % 17,307 2,680 15.5 % 18,491 2,574 13.9 % Asia/Pacific, Middle East and Africa China(a) 24,976 2,099 8.4 % 23,489 2,303 9.8 % 25,843 2,892 11.2 % Other 21,941 576 2.6 % 20,253 505 2.5 % 19,783 435 2.2 % Total Asia/Pacific, Middle East and Africa 46,917 2,675 5.7 % 43,741 2,808 6.4 % 45,626 3,326 7.3 % South America Brazil 2,307 328 14.2 % 2,103 291 13.8 % 2,119 242 11.4 % Other 1,418 128 9.0 % 1,563 160 10.3 % 1,490 152 10.2 % Total South America 3,725 456 12.2 % 3,666 451 12.3 % 3,609 394 10.9 % Total in GM markets 70,215 6,186 8.8 % 64,715 5,939 9.2 % 67,726 6,294 9.3 % Total Europe 16,384 2 — % 14,234 2 — % 15,108 2 — % Total Worldwide(b)(c) 86,600 6,188 7.1 % 78,949 5,941 7.5 % 82,834 6,296 7.6 % United States Cars 3,054 224 7.3 % 2,814 214 7.6 % 3,277 138 4.2 % Trucks 4,249 1,303 30.7 % 3,974 1,246 31.4 % 4,038 1,223 30.3 % Crossovers 8,678 1,068 12.3 % 7,454 814 10.9 % 8,095 857 10.6 % Total United States 15,981 2,595 16.2 % 14,242 2,274 16.0 % 15,410 2,218 14.4 % China(a) SGMS 870 1,037 1,277 SGMW 1,229 1,266 1,615 Total China 24,976 2,099 8.4 % 23,489 2,303 9.8 % 25,843 2,892 11.2 % __________ (a) Includes sales by the Automotive China Joint Ventures (Automotive China JVs): SAIC General Motors Sales Co., Ltd.
Biggest changeThe following table summarizes industry and GM total vehicle sales and our related competitive position by geographic region (vehicles in thousands): Years Ended December 31, 2024 2023 2022 Industry GM Market Share Industry GM Market Share Industry GM Market Share North America United States 16,385 2,705 16.5 % 16,022 2,595 16.2 % 14,242 2,274 16.0 % Other 3,909 510 13.1 % 3,590 460 12.8 % 3,066 406 13.2 % Total North America 20,294 3,215 15.8 % 19,612 3,055 15.6 % 17,308 2,680 15.5 % Asia/Pacific, Middle East and Africa China(a) 26,567 1,839 6.9 % 24,967 2,099 8.4 % 23,489 2,303 9.8 % Other 21,727 520 2.4 % 22,058 577 2.6 % 20,259 505 2.5 % Total Asia/Pacific, Middle East and Africa 48,293 2,359 4.9 % 47,025 2,676 5.7 % 43,748 2,808 6.4 % South America Brazil 2,634 315 12.0 % 2,307 328 14.2 % 2,103 291 13.8 % Other 1,347 109 8.1 % 1,419 128 9.0 % 1,563 160 10.3 % Total South America 3,980 424 10.7 % 3,726 456 12.2 % 3,666 451 12.3 % Total in GM markets 72,568 5,998 8.3 % 70,362 6,187 8.8 % 64,722 5,939 9.2 % Total Europe 16,816 2 — % 16,596 2 — % 14,236 2 — % Total Worldwide(b)(c) 89,383 6,001 6.7 % 86,958 6,189 7.1 % 78,958 5,941 7.5 % United States Cars 2,939 178 6.0 % 3,070 224 7.3 % 2,815 214 7.6 % Trucks 4,345 1,383 31.8 % 4,249 1,303 30.7 % 3,974 1,246 31.4 % Crossovers 9,101 1,144 12.6 % 8,702 1,068 12.3 % 7,454 814 10.9 % Total United States 16,385 2,705 16.5 % 16,022 2,595 16.2 % 14,242 2,274 16.0 % China(a) SGMS 524 870 1,037 SGMW 1,315 1,229 1,266 Total China 26,567 1,839 6.9 % 24,967 2,099 8.4 % 23,489 2,303 9.8 % __________ (a) Includes sales by the Automotive China Joint Ventures (Automotive China JVs): SAIC General Motors Sales Co., Ltd.
These standards are anticipated to be more stringent, aligned with the trend observed in other key global markets. In Brazil, the Secretary of Industry and Development promulgates and enforces CAFE standards and has enforced a new CAFE program for the period October 2020–September 2026 for light-duty and mid-size trucks and SUVs, including diesel vehicles.
These standards are anticipated to be more stringent, aligned with the trend observed in other key global markets. In Brazil, the Secretary of Industry and Development promulgates and enforces CAFE standards and has enforced a CAFE program for the period October 2020–September 2026 for light-duty and mid-size trucks and SUVs, including diesel vehicles.
We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily in China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. Cruise is our global segment responsible for the development and commercialization of autonomous vehicle (AV) technology.
We also have equity ownership stakes in entities that meet the demands of customers in other countries, primarily in China, with vehicles developed, manufactured and/or marketed under the Baojun, Buick, Cadillac, Chevrolet and Wuling brands. Cruise is our global segment responsible for the development of autonomous vehicle (AV) technology.
China has two fuel consumption requirements for passenger vehicles enforced by the Ministry of Industry and Information Technology (MIIT): an individual vehicle pass-fail type approval requirement and a corporate average fuel consumption (CAFC) requirement. Specific to the CAFC requirement, China introduced Phase 5 in 2021 with full compliance required by 2025.
China has two fuel consumption requirements for passenger vehicles enforced by the Ministry of Industry and Information Technology: an individual vehicle pass-fail type approval requirement and a corporate average fuel consumption (CAFC) requirement. Specific to the CAFC requirement, China introduced Phase 5 in 2021 with full compliance required by 2025.
Global treaties and initiatives such as the Basel, Rotterdam and Stockholm Conventions on Chemicals and Waste, the Minamata Convention on Mercury and EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), are driving chemical regulations across signatory countries.
Global treaties and initiatives such as the Basel, Rotterdam and Stockholm Conventions on Chemicals and Waste, the Minamata Convention on Mercury and EU Registration, Evaluation, Authorization and Restriction of Chemicals, are driving chemical regulations across signatory countries.
Website Access to Our Reports Our internet website address is https://www.gm.com. In addition to the information about us and our subsidiaries contained in this 2023 Form 10-K, information about us can be found on our website including information on our corporate governance principles and practices.
Website Access to Our Reports Our internet website address is https://www.gm.com. In addition to the information about us and our subsidiaries contained in this 2024 Form 10-K, information about us can be found on our website including information on our corporate governance principles and practices.
Global regulations continue to increase in scope 12 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES with new technologies, some of which can be market-specific, that can add complexity and increase our cost of compliance globally.
Global regulations continue to increase in scope 10 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES with new technologies, some of which can be market-specific, that can add complexity and increase our cost of compliance globally.
As GM introduces more software-defined vehicles, OnStar is playing a key role as an enabler of active safety, infotainment, connectivity and driver assistance features. OnStar provides one ecosystem for retail and fleet customers to use, engage and shop through a broader set of digital technology offerings available at and after vehicle purchase.
As GM introduces more software-defined vehicles, OnStar is playing a key role as an enabler of active safety, infotainment, connectivity and driver assistance features. OnStar provides one ecosystem for retail and fleet customers to use, engage and shop through a broader set of service offerings available at and after vehicle purchase.
The EPA has issued a proposal for its Tier 4 Multipollutant Rule that will begin with the 2027 model year. The historically stringent proposal calls for ever-increasing volumes of zero emission vehicles (ZEVs) in order to maintain compliance.
The EPA has finalized its Tier 4 Multipollutant Rule that will begin with the 2027 model year. The historically stringent proposal calls for ever-increasing volumes of zero emission vehicles (ZEVs) in order to maintain compliance.
Research and development expenses were $9.9 billion, $9.8 billion and $7.9 billion in the years ended December 31, 2023, 2022 and 2021. Product Development The Global Product Development organization is responsible for designing, developing, validating and integrating all global products, services and their components while aiming to maximize part sharing across multiple vehicle segments.
Research and development expenses were $9.2 billion, $9.9 billion and $9.8 billion in the years ended December 31, 2024, 2023 and 2022. Product Development The Global Product Development organization is responsible for designing, developing, validating and integrating all global products, services and their components while aiming to maximize part sharing across multiple vehicle segments.
China previously issued NEV credit targets between 2019 and 2023 and has set new NEV credit targets aimed at further increasing NEV volumes for 2024 and 2025. In 2022, China began to study the CAFC requirement and NEV credit mandates for 2026–2030 (referred to as Phase 6).
China previously issued NEV credit targets between 2019 and 2023 and has set new NEV credit targets aimed at further increasing NEV volumes for 2024 and 2025. In 2022, China began to study the CAFC requirement and NEV credit mandates for 2026–2030 (referred to as Phase 6) with the final standard expected in 2025.
Harvey (56) Executive Vice President and President, Global Markets (2024) Executive Vice President and President, North America (2023) Vice President, Global Cadillac (2020) Vice President, Cadillac North America Sales, Service and Marketing (2018) Christopher T. Hatto (53) Vice President, Global Business Solutions and Chief Accounting Officer (2020) Vice President, Controller and Chief Accounting Officer (2018) Paul A.
Harvey (57) Executive Vice President and President, Global Markets (2024) Executive Vice President and President, North America (2023) Vice President, Global Cadillac (2020) Vice President, Cadillac North America Sales, Service and Marketing (2018) Christopher T. Hatto (54) Vice President, Global Business Solutions and Chief Accounting Officer (2020) Vice President, Controller and Chief Accounting Officer (2018) Paul A.
The number of NEV credits per car is based on the electric range, energy efficiency and battery energy density with the goal of increasing NEV volume penetrations and improving technological sophistication over time. Uncommitted NEV credits may be used to assist compliance with the corporate average fuel consumption requirement.
The number of NEV credits per car is based on the electric range, energy efficiency and battery energy density with the goal of increasing NEV volume penetrations and improving technological sophistication over time. Uncommitted NEV credits may be used to assist compliance with the CAFC requirement.
Our customers can obtain a wide range of after-sale vehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. The number of authorized dealerships and other agents performing similar functions were 4,618 in GMNA and 7,050 in GMI at December 31, 2023.
Our customers can obtain a wide range of after-sale vehicle services and products through our dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. The number of authorized dealerships and other agents performing similar functions were 4,588 in GMNA and 6,594 in GMI at December 31, 2024.
Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the year ended December 31, 2023, 29.4% of our wholesale vehicle sales volume was generated outside the U.S.
Wholesale vehicle sales data correlates to our revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the year ended December 31, 2024, 27.9% of our wholesale vehicle sales volume was generated outside the U.S.
Expected demand for these raw materials currently exceeds the capacity of the existing supply chain and our raw material sourcing strategy aims to secure raw material supply to support our EV transition. Commodity costs are reflecting greater variability and are expected to remain elevated due to the macro-economic environment and the continuing existence of government policies.
Expected demand for these raw materials currently exceeds the North American capacity of the existing supply chain and our raw material sourcing strategy aims to secure raw material supply to support our EV transition. Commodity costs are reflecting greater variability due to the macroeconomic environment and the continuing existence of government policies.
Safety and Well-Being The safety and well-being of our employees is also a critical component of our ability to transform the future of personal mobility. At GM, we pride ourselves on our commitment to live values that return people home safely — Every Person, Every Site, Every Day.
Safety and Well-Being The safety and well-being of our employees is also a critical component of our ability to transform the future of personal mobility. At GM, we pride ourselves on our commitment to live values that return people home safely — 6 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Every Person, Every Site, Every Day.
The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands): Years Ended December 31, 2023 2022 2021 GMNA 679 564 399 GMI 506 426 311 Total fleet sales 1,185 990 710 Fleet sales as a percentage of total vehicle sales 19.2 % 16.7 % 11.3 % Product Pricing Several methods are used to promote our products, including the use of dealer, retail and fleet incentives, such as customer rebates and finance rate support.
The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands): Years Ended December 31, 2024 2023 2022 GMNA 615 679 564 GMI 401 506 426 Total fleet sales 1,016 1,185 990 Fleet sales as a percentage of total vehicle sales 16.9 % 19.2 % 16.7 % Product Pricing Several methods are used to promote our products, including the use of dealer, retail and fleet incentives, such as customer rebates and finance rate support.
In January 2022, we announced that we will convert Orion Assembly in Orion Township, Michigan to build electric pickups, with the plant slated to begin production in 2025. GM is also investing in our propulsion stamping and components plants to support EV production.
We plan to convert Orion Assembly in Orion Township, Michigan to build electric pickups, with the plant slated to begin production in 2026. GM is also investing in our propulsion, stamping and components plants to support EV production.
Manufacturers may use one or a combination of the following to resolve fleet deficits: credits from the five prior model years, expected credits for the next three model years, credits obtained from other manufacturers or payment of civil penalties. Manufacturers that do not resolve deficits for a model year may be subject to substantial civil penalties.
Manufacturers may use one or a combination of the following to resolve CAFE fleet deficits: credits from the five prior model years, expected credits for the next three model years, credits obtained from other manufacturers or payment of civil penalties.
While total vehicle sales data does not correlate directly to the revenue we recognize during a particular period, we believe it is indicative of the underlying demand for our vehicles.
While total vehicle sales data does not correlate directly to the revenue we recognize during a particular period, we believe it is indicative 2 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES of the underlying demand for our vehicles.
NHTSA has also proposed CAFE standards for the 2027–2031 model years and the EPA has proposed standards for the 2027–2032 model years that are not yet final. NHTSA and the EPA have also proposed on-going fuel efficiency and GHG emissions requirements for medium- and heavy-duty vehicles. These requirements also increase in stringency over time.
In 2024, NHTSA finalized CAFE standards for the 2027–2031 model years and the EPA finalized GHG standards for the 2027–2032 model years. NHTSA and the EPA have also finalized on-going fuel efficiency and GHG emissions requirements for medium- and heavy-duty vehicles. These requirements also increase in stringency over time.
The Canadian federal government's current vehicle pollutant emission requirements are generally aligned with U.S. federal requirements. 9 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In 2019, certain areas within China began implementation of the China 6 emission standard (China 6) requirements.
The Canadian federal government's current vehicle pollutant emission requirements are generally aligned with U.S. federal requirements. In 2019, certain areas within China began implementation of the China 6 emission standard (China 6) requirements.
Reuss (60) President (2019) Executive Vice President and President, Global Product Development Group and Cadillac (2018) There are no family relationships between any of the officers named above and there is no arrangement or understanding between any of the officers named above and any other person pursuant to which he or she was selected as an officer.
Reuss (61) President (2019) There are no family relationships between any of the officers named above and there is no arrangement or understanding between any of the officers named above and any other person pursuant to which he or she was selected as an officer.
We provide a comprehensive, competitive offering that includes compensation, a 401(k) company contribution and matching program, paid time off for holidays and vacations, a high-quality health care plan, and GM Family First savings on GM vehicles, parts, and services.
We provide a comprehensive, competitive offering that includes compensation, a 401(k) company contribution and matching program, paid time off for holidays and vacations, a high-quality health care plan, and GM Family First savings on GM vehicles, parts and services. We are committed to creating safe spaces where people can perform and thrive at work.
In addition, several U.S. states have chemical management regulations that can affect vehicle design and manufacturing such as chemical restriction and use requirements. For example, Maine and Minnesota will require the reporting of PFAS in 2025 and 2026 and the elimination of PFAS in 2030 and 2032, except for unavoidable uses.
In addition, several U.S. states have chemical management regulations that can affect vehicle design and manufacturing such as chemical restriction and use requirements. For example, Minnesota has adopted PFAS reporting and elimination requirements beginning as early as 2026, except for unavoidable uses.
Employees At December 31, 2023, we employed approximately 87,000 (54%) hourly employees and approximately 76,000 (46%) salaried employees. At December 31, 2023, approximately 46,000 (46%) of our U.S. employees were represented by unions, a majority of which were represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).
At December 31, 2024, substantially all of our hourly U.S. employees (approximately 47,000) were represented by unions, a majority of which were represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW).
The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands): Years Ended December 31, 2023 2022 2021 GMNA 3,147 83.5 % 2,926 81.8 % 2,308 80.7 % GMI 621 16.5 % 653 18.2 % 551 19.3 % Total 3,768 100.0 % 3,579 100.0 % 2,859 100.0 % Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments and daily rental car companies); and (3) certain vehicles used by dealers in their business.
The following table summarizes wholesale vehicle sales by automotive segment (vehicles in thousands): Years Ended December 31, 2024 2023 2022 GMNA 3,464 86.4 % 3,147 83.5 % 2,926 81.8 % GMI 547 13.6 % 621 16.5 % 653 18.2 % Total 4,010 100.0 % 3,768 100.0 % 3,579 100.0 % Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments and daily rental car companies); and (3) sales of courtesy transportation vehicles (i.e., vehicles previously used by dealers that were sold to the end consumer).
We do not normally carry substantial inventories of these raw materials in excess of levels reasonably required to meet our production requirements, and while we have not experienced any significant shortages of raw materials, we have recently experienced supply disruptions resulting in temporary production stoppages.
We do not normally carry substantial inventories of these raw materials in excess of levels reasonably required to meet our production requirements, and while we have not experienced any significant shortages of raw materials, supply disruptions may occur as a result of geopolitical and/or policy actions.
Software-Enabled Services and Subscriptions Our vehicles are equipped with a suite of software-enabled services, including OnStar services, Super Cruise and others. With more than 25 years of experience, OnStar is a global leader in safety and digital services. OnStar is currently available in 15 markets globally and growing.
Software-Enabled Services and Subscriptions Our vehicles are equipped with a suite of software-enabled services, including OnStar services, Super Cruise and others. With nearly three decades of experience, OnStar is a global leader in enabling automotive services. OnStar is currently available in 20 markets globally and growing.
Processing of certain EV raw materials required for production of EVs are currently concentrated in China and may be subject to import or export restrictions.
Processing and extraction of certain EV battery raw materials is currently concentrated in China and may be subject to import or export restrictions, or tariffs.
As a result, we strive to create a Workplace of Choice to attract, retain and develop top talent by adhering to a responsible employer philosophy, which includes, among other things, commitments to create job opportunities, pay workers fairly, ensure safety and well-being and promote diversity, equity and inclusion (DEI).
As a result, we strive to create a Workplace of Choice to attract, retain, motivate and develop top talent by adhering to a responsible employer philosophy, which includes, among other things, commitments to create job opportunities, pay workers fairly, ensure safety and well-being and foster an inclusive work environment in which all employees can perform at their best.
For additional information, refer to Note 16 to our consolidated financial statements. Automotive Fuel Economy and GHG Emissions In the U.S., the National Highway Traffic Safety Administration (NHTSA) promulgates and enforces Corporate Average Fuel Economy (CAFE) standards for three separate fleets: domestic cars, import cars and light-duty trucks.
Automotive Fuel Economy and GHG Emissions In the U.S., NHTSA promulgates and enforces Corporate Average Fuel Economy (CAFE) standards for three separate fleets: domestic cars, import cars and light-duty trucks.
Our global vehicle architecture development is headquartered at our Global Technical Center in Warren, Michigan, where our global teams in Design, Program Management & Execution, Hardware, Systems & Integration, Product Safety, Systems & Certification, Software Defined Vehicle Embedded Platforms, Electrification & Battery Systems, Technology Acceleration & Commercialization and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale. 4 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES We continue to invest in key ICE segments, which are critical to fund our all-electric future.
Our global vehicle architecture development is headquartered at our Global Technical Center in Warren, Michigan, where our global teams in Design, Program Management & Execution, Hardware, Systems & Integration, Product Safety, Systems & Certification, Electrification & Battery Systems, Technology Acceleration & Commercialization and Purchasing & Supply Chain collaborate to meet customer requirements and maximize global economies of scale.
Additionally, we have announced plans to mass-produce battery cells for these and other future EVs through Ultium Cells Holdings LLC (an equally owned joint venture with LG Energy Solution) in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.
We are mass-producing battery cells for these and other future EVs through Ultium Cells Holdings LLC (an equally owned joint venture with LG Energy Solution) in plants in Warren, Ohio and Spring Hill, Tennessee, with plans to expand our battery cell manufacturing footprint, including in Indiana through a joint venture with Samsung SDI.
In 2022, China began studies regarding the next generation of vehicle emission standards (China 7), which will likely be influenced by the European (Euro 7) standards. Brazil has approved a set of national emission standards referred to as L7, implemented in 2022, and L8, to be implemented from 2025 onward.
In 2022, China began studies regarding the next generation of vehicle emission standards (China 7), with the final standard expected in 2026. While largely based on Euro 7, some divergence and unique requirements are expected. Brazil has approved a set of national emission standards referred to as L7, implemented in 2022, and L8, to be implemented from 2025 onward.
Cross-segment part sharing is an essential enabler to optimize our vehicle portfolio profitability, with more than 75% of our global internal combustion vehicle sales volume expected to come from five internal combustion vehicle architectures through this decade. We will continue to leverage our ICE portfolio to accommodate our customers around the world while achieving our financial goals.
Cross-segment part sharing is an essential enabler to optimize our vehicle portfolio profitability, with more than 75% of our global internal combustion vehicle 4 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES sales volume expected to come from five internal combustion vehicle architectures through this decade.
In addition to federal CAFE standards, the EPA promulgates and enforces GHG emission standards. NHTSA and the EPA have separately finalized standards with differing stringency levels and affected model years, with the CAFE standards addressing the 2024–2026 model years and the GHG standards addressing the 2023–2026 model years and both standards have been challenged through litigation.
NHTSA and the EPA have previously finalized separate standards with differing stringency levels and affected model years, with the CAFE standards addressing the 2024– 8 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES 2026 model years and the GHG standards addressing the 2023–2026 model years and both standards have been challenged through litigation.
Automotive Financing - GM Financial GM Financial is our global captive automotive finance company and our global provider of automobile finance solutions. GM Financial conducts its business in North America, South America and through joint ventures in China. GM Financial provides retail loan and lease lending across the credit spectrum to support vehicle sales.
Risk Factors for further discussion of these risks. Automotive Financing - GM Financial GM Financial is our global captive automotive finance company and our global provider of automobile finance solutions. GM Financial conducts its business in North America, South America and through joint ventures in China.
Software & Services The newly created Software & Services organization, with a presence in Silicon Valley, California and globally, is bringing together all of GM's software capabilities and assets under one team for the first time at GM.
We will continue to leverage our ICE portfolio to accommodate our customers around the world while achieving our financial goals. Software and Services The Software & Services organization, with a presence in Mountain View, California and globally, is bringing together all of GM's software capabilities and assets under one team for the first time at GM.
In July 2023, GM also announced that it is collaborating with six other major automakers as part of a joint venture that will seek to create a high-powered charging network with a targeted installation of at least 30,000 chargers in urban and highway locations throughout North America.
GM is also a founding member of IONNA, a joint venture with seven other automakers aiming to create a high-powered charging network with a targeted installation of at least 30,000 chargers in urban and highway locations throughout North America. The joint venture broke ground on its first charging station in October 2024.
Environmental and Regulatory Matters Automotive Criteria Emissions Control Our products are subject to laws and regulations globally that require us to control certain non-GHG automotive emissions, including vehicle and engine exhaust emission standards, vehicle evaporative emission standards and onboard diagnostic (OBD) system requirements.
Each of the officers named above was elected by the Board of Directors to hold office until his or her successor is elected and qualified or until his or her earlier resignation or removal. 7 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Environmental and Regulatory Matters Automotive Criteria Emissions Control Our products are subject to laws and regulations globally that require us to control certain non-GHG automotive emissions, including vehicle and engine exhaust emission standards, vehicle evaporative emission standards and onboard diagnostic (OBD) system requirements.
Jacobson (52) Executive Vice President and Chief Financial Officer (2020) Delta Air Lines, Executive Vice President — Chief Financial Officer (2013) Gerald Johnson (61) Executive Vice President, Global Manufacturing and Sustainability (2019) Vice President, North America Manufacturing and Labor Relations (2017) Mark L.
Jacobson (53) Executive Vice President and Chief Financial Officer (2020) Delta Air Lines, Executive Vice President and Chief Financial Officer (2013) Mark L.
The inability or unwillingness of these sources to provide us with parts and supplies could have a material adverse effect on our production.
The inability or unwillingness of these sources to provide us with parts and supplies could have a material adverse effect on our production. Combined purchases from our two largest suppliers were approximately 11% of our total purchases in each of the years ended December 31, 2024, 2023 and 2022. Refer to Item 1A.
In 2021, we began production at GM’s Factory ZERO Detroit-Hamtramck Assembly Center (Factory ZERO), which was re-tooled into a fully dedicated EV facility to produce a variety of vehicles, including the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the upcoming Cadillac ESCALADE IQ.
GM’s Factory ZERO Detroit-Hamtramck Assembly Center is a fully dedicated EV facility which produces a variety of vehicles, including the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the recently launched Cadillac ESCALADE IQ, with globally sourced parts. GM's CAMI Assembly is Canada's first full-scale EV manufacturing facility.
Our end-to-end software platform provides customers with software-defined features, apps and services over-the-air and will empower customers to update their ownership experiences with desirable features, software services, vehicle performance and Super Cruise. Super Cruise enables drivers of properly equipped vehicles to travel hands-free on more than 400,000 miles of compatible roads in the U.S. and Canada.
Our end-to-end software platform provides customers with 1 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES software-defined features, apps and services over-the-air and will empower customers to update their ownership experiences with desirable features, software services, vehicle performance and Super Cruise.
Our Investor Relations website at https://investor.gm.com contains a significant amount of information about us, including financial and other information for investors. We encourage investors to visit our website, as we frequently update and post new information about our company on our website and it is possible that this information could be deemed to be material information.
We encourage investors to visit both websites, as we frequently update and post new information about our company on these websites and it is possible that this information could be deemed to be material information. Our Investor Relations website and News website and information included in or linked to these websites are not part of this 2024 Form 10-K.
In addition to mentoring and networking opportunities, we offer a vast array of career development resources to help develop, grow and enable employees to make the most of their careers at GM.
We have introduced various tools to outline expectations of our employees at each stage of our career ladder in terms of role scope, skills and behaviors. Along with providing mentoring and networking opportunities, we offer a vast array of career development resources to employees to make the most of their careers at GM.
We are committed to creating spaces where people can show up and thrive as their authentic selves at work as well as at home. GM encourages and supports healthy behaviors, attitudes and actions in our workplaces to improve health outcomes for team members and their families and to contribute to the success of our business.
GM encourages and supports healthy behaviors, attitudes and actions in our workplaces to improve health outcomes for team members and their families and to contribute to the success of our business. Employees At December 31, 2024, we employed approximately 90,000 (55%) hourly employees and approximately 72,000 (45%) salaried employees.
It is also tied to our GM competency and skills model. Employees in some of our technical roles also have the opportunity to participate in the 7 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Technical Learning University — a training and upskilling program designed to expand and update the technical prowess of our workforce.
Employees in some of our technical roles can participate in the GM Technical Learning University — a training and upskilling program designed to expand and update the technical abilities of our workforce. GM recognizes that leadership effectiveness is a critical business need.
Industrial Environmental Control Our operations are subject to a wide range of environmental protection laws including those regulating air emissions, water discharge, waste management and environmental cleanup. Certain environmental statutes require that responsible parties fund remediation actions regardless of fault, legality of original disposal or ownership of a disposal site.
Risk Factors for additional information. 9 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Industrial Environmental Control Our operations are subject to a wide range of environmental protection laws including those regulating air emissions, water discharge, waste management and environmental cleanup.
Barra (62) Chair and Chief Executive Officer (2016) Julian Blissett (57) Executive Vice President and President, GM China (2020) Senior Vice President, International Operations (2019) Vice President, Executive Shanghai GM (2014) Craig B. Glidden (66) Executive Vice President, Legal, Policy, Cybersecurity, and Corporate Secretary (2021) Executive Vice President and General Counsel (2015) Rory V.
Barra (63) Chair and Chief Executive Officer (2016) Grant Dixton (51) Executive Vice President, Chief Legal, Public Policy Officer and Corporate Secretary (2024) Activision Blizzard, Chief Legal Officer (2021) Boeing, Senior Vice President, General Counsel and Corporate Secretary (2020) Rory V.
The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation. Further, in August 2022, CARB finalized its Advanced Clean Cars II (ACC II) program, including ZEV standards requiring increasing percentages of ZEVs for the 2026–2035 model years, ending with a 100% sales target in the 2035 model year.
CARB has also imposed a ZEV requirement for medium- and heavy-duty vehicles in its Advanced Clean Trucks (ACT) program, requiring increasing percentages of ZEVs for the 2024–2026 model years, ending with a 100% ZEV sales requirement in the 2036 model year. CARB has a waiver from the EPA to enforce ACT.
EPA GHG emission standards given the integrated nature of the auto sector between Canada and the U.S. The Canadian light-duty GHG standards continue to largely align with the U.S. EPA GHG standards for the 2023–2026 model years.
In Canada, federal light- and heavy-duty GHG regulations contain emission standards that are modeled on existing U.S. EPA light- and heavy-duty GHG emission standards for the 2023–2026 model years.
To win and keep top talent, we must provide a workplace culture that encourages employee behaviors aligned with our values, fulfills employees' long-term individual aspirations and provides experiences that make individuals feel valued, included and engaged. In furtherance of this goal, we invest significant resources to retain and develop our talent.
Develop and Retain Talented People Today, we compete for talent not only against other automotive companies, but with businesses in sectors such as technology. To win and retain that talent, we must encourage employee behaviors that align with our values, fulfill employees' long-term aspirations and provide experiences that make them feel valued, included and engaged.
As a result, GM is required to meet state GHG standards in California and the states that have adopted California’s GHG standards. The EPA’s rescission of its withdrawal of California’s waiver has been challenged through litigation. CARB has not proposed separate GHG standards for the 2026 or later model years, but may do so in the future.
CARB has not proposed increases to its GHG standards for the 2026 or later model years, but may do so in the future. CARB has also imposed requirements to sell increasing percentages of ZEVs in California, ending with a 100% sales target in the 2035 model year.
Electric Vehicles We plan to have annual EV capacity of one million units in North America as we exit 2025. A key element in our EV strategy is Ultium, our dedicated EV propulsion architecture.
Electric Vehicles We are offering customers choice with our diverse EV lineup. A key element in our EV strategy is our dedicated EV propulsion architecture.
The following table summarizes worldwide employment (in thousands): December 31, 2023 GMNA(a) 123 GMI 31 GM Financial 9 Total Worldwide 163 U.S. - Salaried 53 U.S. - Hourly 46 __________ (a) Includes Cruise. 8 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Information About our Executive Officers As of January 30, 2024, the names and ages of our executive officers and their positions with GM are as follows: Name (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date) Michael Abbott (51) Executive Vice President, Software (2023) Apple, Vice President of Engineering, Cloud Services Division (2018) Mary T.
Information About our Executive Officers As of January 28, 2025, the names and ages of our executive officers, their positions with GM and their business experiences during the past five years are as follows: Name (Age) Present GM Position (Effective Date) Positions Held During the Past Five Years (Effective Date) Mary T.
CARB must obtain a waiver from the EPA to implement its ACC II program. Additional U.S. jurisdictions could adopt CARB’s ACC and ACC II requirements in the future. 10 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In Canada, federal light- and heavy-duty GHG regulations are currently patterned after the U.S.
CARB received a waiver from the EPA for it and the other adopting states to implement and enforce the ACC II program and that waiver action has been challenged through litigation. Additional U.S. jurisdictions could adopt CARB’s ACC II requirements in the future.
In addition, CARB has asserted the right to promulgate and enforce its own state GHG standards for motor vehicles, and other states have asserted the right to adopt CARB's standards. CARB regulations previously stated that compliance with the light-duty EPA GHG program is deemed compliance with CARB standards.
In addition, CARB has promulgated and enforces its own light-duty vehicle GHG standards with increasing stringency through model year 2025, and other states have adopted CARB's GHG standards under the Federal Clean Air Act. GM is required to meet state GHG standards in California and the states that have adopted California’s GHG standards.
Beyond this, as a part of the EU's desire to accelerate the shift to sustainable mobility, the EU is looking to develop stricter emission standards (Euro 7) for all vehicles (including cars, vans, lorries and buses), as it moves to end the sale of ICE vehicles past 2035, and place requirements on batteries to be used in EVs.
Beyond this, as part of the EU's desire to accelerate the shift to sustainable mobility, the EU has recently rolled out new regulations which will impose more stringent emissions standards on ICE vehicles (Euro 7), before phasing them out in 2035.
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We have an opportunity to grow our vehicle and financing revenue by continuing to capitalize on the strength of our established vehicle franchises and customer base and scaling our EV production through this decade.
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Our current-generation, flexible EV platform is being deployed across multiple brands and vehicle sizes, styles and drive configurations, leveraging our technology to expand our EV portfolio over a wide and growing variety of segments and price points.
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We also have the potential of growing our revenue through our software-enabled services and subscriptions, including OnStar, our advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and our end-to-end software platform.
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With our next-generation battery technology, we intend to expand to multiple chemistries, multiple form factors and multiple cell suppliers as we continue to deliver even more EV choices for our customers. To support our expanding portfolio of EVs, we have made significant investments in our plants across North America.
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Additionally, we are incubating several new businesses that we believe will enable us to attract new customers and generate revenues in new areas, like GM Defense which is helping global defense and government customers transition to a more electric, autonomous and connected future.
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GM's all-electric future is guided by customer choice and focused on delivering a world-class portfolio of EVs and an ecosystem to support them, while maintaining a compelling lineup of gas-powered vehicles. GM EV drivers have access to more than 231,000 chargers across North America.
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This platform is flexible and will be deployed across multiple brands and vehicle sizes, styles and drive configurations, allowing for quick response to customer preferences and a shorter design and development lead time compared to our ICE vehicles.
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This includes access to more than 20,000 Tesla Superchargers with the use of a GM-approved North American Charging Standard adapter. In 2024, GM also announced that it will enhance its collaboration with EVgo to build 2,850 DC fast charging stalls, including 400 fast chargers at flagship destinations in major metropolitan areas across the U.S.
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We plan to leverage Ultium to expand our EV portfolio over a wide variety of segments and price points with multiple launches planned in 2024 and additional EV entries planned for 2025 and beyond.
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Super Cruise enables drivers of properly equipped vehicles to travel hands-free on more than 530,000 miles of compatible roads, and soon to be approximately 750,000 miles, in the U.S. and Canada. Additional software-enabled features are expected to be available in the near future including security features, climate and comfort options, personal themes and EV ownership experience elements.
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GM’s CAMI Assembly – Canada’s first full-scale EV manufacturing facility – is the global production home of BrightDrop's Zevo 600 and Zevo 400.
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Many of GM's latest electric and internal combustion vehicles are employing this software platform as it rolls out across most products in the coming years. Cruise GM Cruise Holdings LLC (Cruise Holdings), our majority-owned subsidiary, has been pursuing the development and commercialization of AV technology for deployment in a robotaxi application.
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GM’s commitment to an all-electric future is focused not only on delivering a world-class portfolio of EVs, but investing in an ecosystem that will help enable mass EV adoption, including the development of turn-key charging solutions as well as fleet and facility energy management services.
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In December 2024, we announced plans to refocus our autonomous driving strategy on personal vehicles and that we would no longer fund Cruise's robotaxi development work. We are pursuing the acquisition of the noncontrolling interests in Cruise, and as of December 31, 2024, we owned approximately 97% of Cruise.
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To support this goal, we are working to help ensure that our customers will have access to comprehensive energy management and fast, reliable charging solutions at home, at the workplace and in public locations. Currently, GM has integration relationships with 12 EV charging networks and GM EV drivers have access to over 174,000 chargers throughout the U.S. and Canada.
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Following the acquisition of the noncontrolling interests and subject to approval of the Cruise Board of Directors, we expect to work with the Cruise leadership team to restructure Cruise's operations and combine the GM and Cruise technical efforts to build on the success of Super Cruise and prioritize the development of advanced driver-assistance systems (ADAS) on a path to fully autonomous personal vehicles.
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Beginning in early 2024, GM’s EV drivers will gain access to 15,000 Tesla Superchargers, and growing, throughout North America. The first GM EVs will be built with the North American Charging 1 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Standard (NACS) hardware on the vehicles beginning in 2025.
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Refer to Item 1A. Risk Factors for a further discussion of the risks associated with our AV strategy. Over the last year, we have engaged and actively cooperated with certain federal and state agencies who opened investigations or made inquiries to us and Cruise in connection with an accident involving a Cruise robotaxi in October 2023.
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Additional software-enabled features will be available later including security features, climate and comfort options, personal themes and EV ownership experience elements. Select vehicles, including the 2024 Cadillac LYRIQ and Chevrolet Silverado EV, are already employing this software platform as it begins its rollout across most products in the coming years.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, foreign governments may decide to implement tax and other policies that favor their domestic manufacturers at the expense of international manufacturers, including GM and its joint venture partners. These actions have had, and are expected to continue to have, a significant negative effect on our vehicle pricing, market share and operating results in these markets.
Biggest changeThese actions have had, and are expected to continue to have, a significant negative effect on our vehicle pricing, market share and operating results in these markets. In addition, foreign governments may decide to implement tax and other policies that favor their domestic manufacturers at the expense of international manufacturers, including GM and its joint venture partners.
We also face the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate our business activities, including vendors, service providers, suppliers, customers, counterparties, exchanges, clearing agents, clearinghouses or other financial intermediaries.
We also face the risk of operational disruption, failure, termination or capacity constraints of any of the service providers or third parties that facilitate our business activities, including vendors, suppliers, customers, counterparties, exchanges, clearing agents, clearinghouses or other financial intermediaries.
To the extent accidents, cybersecurity breaches or other adverse events associated with our autonomous driving systems occur, we could be subject to liability, reputational harm, government scrutiny and further regulation, and it could deter consumer adoption of AV technology. Any of the foregoing could materially and adversely affect our results of operations, financial condition and growth prospects.
To the extent accidents, cybersecurity breaches or other adverse events associated with our autonomous driving systems occur, we could be subject to liability, reputational harm, government scrutiny and further regulation, and it could deter consumer adoption of AV and ADAS technology. Any of the foregoing could materially and adversely affect our results of operations, financial condition and growth prospects.
Failure to attract, hire, develop, motivate and retain highly qualified and diverse employees could disrupt our operations and adversely affect our strategic plans. Our ability to maintain profitability is dependent upon our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract a sufficient number of consumers.
Failure to attract, hire, develop, motivate and retain highly qualified employees could disrupt our operations and adversely affect our strategic plans. Our ability to maintain profitability is dependent upon our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract a sufficient number of consumers.
See “Our long-term strategy is dependent upon our ability to profitably deliver a strategic portfolio of EVs” and “Our near-term profitability is dependent upon the success of our current line of full-size ICE SUVs and full-size ICE pickup trucks.” Finally, increased intensity, frequency or duration of storms, droughts, wildfires or other severe weather events as a result of climate change may disrupt our production and the production, logistics, cost and procurement of products from our suppliers and timely delivery of vehicles to customers, and could negatively impact working conditions at our plants and those of our suppliers.
See “Our long-term strategy is dependent upon our ability to profitably deliver a strategic portfolio of EVs” and “Our near-term profitability is dependent upon the success of our current line of full-size ICE SUVs and full-size ICE pickup trucks.” Finally, increased intensity, frequency or duration of storms, droughts, wildfires or other severe weather events as a result of climate change may disrupt our production and the production, logistics, cost and procurement of products from our suppliers, timely delivery of vehicles to customers and operations of our dealers, and could negatively impact working conditions at our plants and those of our suppliers and dealers.
Geopolitical risk, fluctuations in supply and demand, fluctuations in interest rates, any weakening of the U.S. dollar and other economic and political factors have created and may continue to create pricing pressure for commodities, raw materials, energy and other inputs.
Geopolitical risk, fluctuations in supply and demand, fluctuations in interest rates, any weakening of the U.S. dollar and other economic, regulatory and political factors have created and may continue to create pricing pressure for commodities, raw materials, energy and other inputs.
Any unauthorized access to, or control of, our vehicles or their systems or any unauthorized access to or loss of data could adversely impact the safety of our customers or result in failure of our systems, any of which could result in interruptions to our business, legal claims or proceedings, liability or regulatory penalties.
Any unauthorized access to, or control of, our vehicles or their systems or any unauthorized access to, acquisition of or loss of data could adversely impact the safety of our customers or result in failure of our systems, any of which could result in interruptions to our business, legal claims or proceedings, liability or regulatory penalties.
Data Protection Act of 2018, and other international data protection, privacy, data security, data localization and similar national, state, provincial, and local laws, the failure to maintain compliant data practices could result in consumer complaints and regulatory inquiry, resulting in civil or criminal penalties, as well as have a negative impact on our brand or result in other harm to our business.
Data Protection Act of 2018, and other international data protection, privacy, data security, data localization and similar national, state, provincial, and local laws, the failure to maintain compliant data practices could result in consumer complaints, private litigation and regulatory inquiry resulting in civil or criminal penalties, as well as have a negative impact on our brand or result in other harm to our business.
Our global operations subject us to extensive domestic and foreign legal and regulatory requirements, and a variety of other political, economic and regulatory risks, which may have a material adverse effect on our financial condition or results of operations, including: (1) changes in government leadership; (2) changes in trade compliance, labor, employment, tax, privacy, environmental and other laws, regulations or government policies impacting our overall business model or practices or restricting our ability to manufacture, purchase or sell products consistent with market demand and our business objectives; (3) political pressures to change any aspect of our business model or practices or that impair our ability to source raw materials, services, components, systems and parts, or manufacture products on competitive terms in a manner consistent with our business objectives (including with respect to full utilization of the incentives contemplated by the IRA); (4) political uncertainty, instability, civil unrest, government controls over certain sectors or human rights concerns; (5) political and economic tensions between governments and changes in international economic policies, including restrictions on the repatriation of dividends or in the export of technology, especially between China and the U.S.; (6) changes to customs requirements or procedures (e.g., inspections) or new or higher tariffs, for example, on products imported into or exported from the U.S., including under U.S. or other trade laws or measures, or other key markets; (7) new or evolving non-tariff barriers or domestic preference procurement requirements, or enforcement of, changes to, withdrawals from or impediments to implementing free trade agreements, or preferences of foreign nationals for domestically manufactured products; (8) changes in foreign currency exchange rates, particularly in Argentina, and interest rates; (9) economic downturns or significant changes in macroeconomic conditions in the countries in which we operate; (10) differing local product preferences and product requirements, including government certification requirements related to, among other things, fuel economy, vehicle emissions, EVs and AVs, connected services and safety; (11) impact of changes to and compliance with U.S. and foreign countries’ export controls, economic sanctions and other similar measures; (12) impacts on our operations or liabilities resulting from U.S. and foreign laws and regulations, including, but not limited to, those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; (13) differing labor regulations, agreements, requirements and union relationships; (14) differing dealer and franchise regulations and relationships; (15) difficulties in obtaining financing in foreign countries for local operations; and (16) natural disasters, public health crises, and other catastrophic events.
Our global operations subject us to extensive domestic and foreign legal and regulatory requirements, and a variety of other political, economic and regulatory risks, which may have a material adverse effect on our financial condition or results of operations, including: (1) changes in government leadership; (2) changes in trade compliance, labor, employment, tax, privacy, environmental and other laws, regulations or government policies impacting our overall business model or practices or restricting our ability to manufacture, purchase or sell products consistent with market demand and our business objectives; (3) political pressures to change any aspect of our business model or practices or that impair our ability to source raw materials, services, components, systems and parts, or manufacture products on competitive 16 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES terms in a manner consistent with our business objectives (including with respect to full utilization of the incentives contemplated by the IRA); (4) political uncertainty, instability, civil unrest, government controls over certain sectors or human rights concerns; (5) political and economic tensions between governments and changes in international economic policies, including restrictions on the repatriation of dividends or in the export of technology, especially between China and the U.S.; (6) changes to customs requirements or procedures (e.g., inspections) or new or higher tariffs, for example, on products imported into or exported from the U.S., including under U.S. or other trade laws or measures, or other key markets; (7) new or evolving non-tariff barriers or domestic preference procurement requirements, or enforcement of, changes to, withdrawals from or impediments to implementing free trade agreements, or preferences of foreign nationals for domestically manufactured products; (8) changes in foreign currency exchange rates and interest rates; (9) economic downturns or significant changes in macroeconomic conditions in the countries in which we operate; (10) differing local product preferences and product requirements, including government certification requirements related to, among other things, fuel economy, vehicle emissions, EVs and AVs, connected services and safety; (11) impact of changes to and compliance with U.S. and foreign countries’ export controls, economic sanctions, import controls, foreign investment and other similar measures; (12) impacts on our operations or liabilities resulting from U.S. and foreign laws and regulations, including, but not limited to, those related to the Foreign Corrupt Practices Act and certain other anti-corruption laws; (13) differing labor regulations, agreements, requirements and union relationships; (14) differing dealer and franchise regulations and relationships; (15) difficulties in obtaining financing in foreign countries for local operations; and (16) natural disasters, public health crises and other catastrophic events.
In addition, increased consumer sensitivity to real or perceived failures in maintaining acceptable data practices could damage our reputation and deter current and potential users or customers from using our products and services. The cost of compliance with these laws and regulations will be high and is likely to increase in the future.
In addition, increased consumer sensitivity to real or perceived failures in establishing, implementing and maintaining acceptable data practices could damage our reputation and deter current and potential users or customers from using our products and services. The cost of compliance with these laws and regulations will be high and is likely to increase in the future.
We are subject to legal proceedings in the U.S. and elsewhere involving various issues, including product liability lawsuits, warranty litigation, class action litigations alleging product defects, emissions litigation, stockholder litigation, labor and employment litigation and claims and actions arising from restructurings and divestitures of operations and assets. In addition, we are subject to various governmental proceedings and investigations.
We are subject to legal proceedings in the U.S. and elsewhere involving various issues, including product liability lawsuits, warranty litigation, class action litigations alleging product defects, emissions litigation, privacy matters, stockholder litigation, labor and employment litigation and claims and actions arising from restructurings and divestitures of operations and assets. In addition, we are subject to various governmental proceedings and investigations.
In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the countries in which we do business (for example, the Organisation for Economic Co-Operation and Development proposals, including the introduction of global minimum tax standards), the possibility of tax controversy related to adverse determinations with respect to the application of existing laws (in particular, with respect to full realization of the incentives contemplated by the IRA), changes in our business or structure and changes in the valuation of our deferred tax assets and liabilities.
In addition, our tax liabilities are subject to other significant risks and uncertainties, including those arising from potential changes in laws and regulations in the U.S. and other countries in which we do business (for example, the IRA and the Organisation for Economic Co-Operation and Development proposals, including the introduction of global minimum tax standards), the possibility of tax controversy related to adverse determinations with respect to the application of existing laws (for example, with respect to full realization of the incentives contemplated by the IRA), changes in our business or structure and changes in the valuation of our deferred tax assets and liabilities.
If we are unable to utilize or otherwise monetize the raw materials we are obligated to purchase under these offtake agreements, whether as a result of lower than expected EV production volumes, changes in battery technology that reduce the need for certain raw materials or other reasons, it could materially adversely affect our cash flows and increase our inventory.
If we are unable to utilize or otherwise monetize the raw materials we are obligated to purchase under these offtake agreements, whether as a result of lower than expected EV production volumes, lower than expected rates of consumer adoption, changes in battery technology that reduce the need for certain raw materials or other reasons, it could materially adversely affect our cash flows and increase our inventory.
In addition, our success in China depends upon our ability to adequately address unique market and consumer preferences driven by advancements related to EVs, infotainment, software-enabled connected services and other new technologies while achieving industry-leading affordability.
In addition, our success in China depends upon our ability to adequately address unique market and consumer preferences driven by advancements related to EVs, infotainment, software-enabled connected services and other new technologies while achieving affordability.
In addition, we have made, and plan to continue to make, significant investments in EV manufacturing capacity based on our expectations for EV demand, which is subject to various risks and uncertainties as described above.
In addition, we have made, and plan to continue to make, significant investments in EV manufacturing capacity based on our expectations for long-term EV demand, which is subject to various risks and uncertainties as described above.
Our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions .
Our enterprise data practices, including the collection, use, sharing and security of the personal or other information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions .
Security breaches, cyberattacks and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintained by us, GM Financial, or third parties, such as vendors or suppliers, could interfere with our operations and could compromise the confidentiality of private customer data or our proprietary information.
Security breaches, cyberattacks and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintained by us, GM Financial, service providers, such as data processors, or third parties, such as vendors or suppliers, could interfere with our operations and could compromise the confidentiality of private customer data or our proprietary information.
Specifically, fuel economy and GHG emission regulations at the federal, state or local level or in international jurisdictions could require us to further limit the sale of certain profitable products, subsidize the sale of less profitable ones, change our manufacturing processes, pay increased penalties, purchase additional credits from our competitors or undertake other activities that may require us to incur additional expense, which may be material.
Specifically, fuel economy and GHG emission regulations at the federal, state or local level or in international jurisdictions could require us to further limit the sale of certain profitable ICE products in current and future years, subsidize the sale of less profitable ones, change our manufacturing processes, pay increased penalties, purchase additional credits from our competitors or undertake other activities that may require us to incur additional expense, which may be material.
We may not be able to easily shift production to other facilities or to make up for lost production. Any new facility needed to replace an inoperable manufacturing facility would need to comply with the necessary regulatory requirements, need to satisfy our specialized manufacturing requirements and require specialized equipment.
We may not be able to easily shift production to other facilities or to make up for lost production. Any new facility needed to replace an inoperable manufacturing facility would need to comply with the necessary regulatory requirements and applicable labor agreements, need to satisfy our specialized manufacturing requirements and require specialized equipment.
Despite our security measures and business continuity plans, our information technology systems and networked and connected products may be vulnerable to intrusion, damage, disruptions or shutdowns caused by attacks by hackers, computer viruses or worms, malware (including “ransomware”), phishing attacks, denial of service attacks or breaches due to errors, negligence or malfeasance by employees, contractors and others who have access to these systems and products.
Despite our security measures and business continuity plans, our information technology systems and networked and connected products may be vulnerable to intrusions, damage, disruptions or shutdowns caused by attacks by hackers, computer viruses or worms, malware (including “ransomware”), phishing attacks, spyware, denial of service attacks and/or breaches due to errors, negligence or malfeasance by employees, contractors, vendors and others who have access to these systems and products.
Laws that would permit third-party access to vehicle data and related systems could expose our vehicles and vehicle systems to third-party access without appropriate security measures in place, leading to new safety and security risks for our customers and reducing customer trust and confidence in our products.
Laws that would permit third-party access to vehicle data and related systems, including "right to repair" laws, could expose our vehicles and vehicle systems to third-party access without appropriate security measures in place, leading to new safety and security risks for our customers and reducing customer trust and confidence in our products.
We rely upon information technology systems and manufacture networked and connected products, some of which are managed by third parties, to process, transmit and store electronic information and to manage or support a variety of our business processes, activities and products.
We rely upon information technology systems and manufacture networked and connected products, some of which are managed by third parties, to collect, process, transmit, use, protect and store electronic information and to manage or support a variety of our business processes, activities and products.
As a result, we may be unable to prevent violations of applicable laws or other misconduct by a joint venture or the failure to satisfy contractual obligations by one or more parties. Moreover, a joint venture may not be subject to the same financial reporting, corporate governance, or compliance approaches that we follow.
As a result, we may be unable to prevent violations of applicable laws or other misconduct by a joint venture, adverse human rights or other impacts or the failure to satisfy contractual obligations by one or more parties. Moreover, a joint venture may not be subject to the same financial reporting, corporate governance or compliance approaches that we follow.
Regulations at the federal, state or local level or in international jurisdictions could require us to further limit emissions associated with customer use of products we sell, change our manufacturing processes or product portfolio or undertake other activities that may require us to incur additional expense, which may be material.
Regulations at the federal, state or local level or in international jurisdictions could require us to further limit emissions associated with customer use of products we sell, change our manufacturing processes or product portfolio or undertake other activities that may require us to incur additional expense, including the purchase of emissions credits or the payment of penalties, which may be material.
Any near-term shift in consumer preferences toward smaller, more fuel-efficient vehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of global political instability (such as related to the ongoing conflicts in Ukraine and Gaza), concerns about fuel consumption or GHG emissions, or other reasons, could weaken the demand for our higher margin vehicles.
Any near-term shift in consumer preferences toward smaller, more fuel-efficient vehicles, whether as a result of increases in the price of oil or any sustained shortage of oil, including as a result of global political instability (such as related to the ongoing conflicts in Eastern Europe and the Middle East), concerns about fuel consumption or GHG emissions, or other reasons, could weaken the demand for our higher margin vehicles.
Increases in prices, including as a result of inflation and rising interest rates, for commodities, raw materials, energy or other inputs that we and our suppliers use in manufacturing products, systems, components and parts, such as steel, precious metals, non-ferrous metals, critical minerals or other similar raw materials, or increases in logistics and related costs, have led and may 16 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES continue to lead to higher production costs for parts, components and vehicles.
Increases in prices, including as a result of inflation and rising interest rates, for commodities, raw materials, energy or other inputs that we and our suppliers use in manufacturing products, systems, components and parts, such as steel, precious metals, non-ferrous metals, critical minerals or other similar raw materials, or increases in logistics and related costs, have led and may continue to lead to higher production costs for parts, components and vehicles.
In addition, we face risks related to the commercial deployment of AVs on our targeted timeline or at all, including consumer acceptance, reputation of our brand, achievement of adequate safety and other performance standards and compliance with uncertain, evolving and potentially conflicting federal, state, provincial or local regulations.
In addition, we face risks related to the commercial deployment of AVs, including consumer acceptance, reputation of our brand, achievement of adequate safety and other performance standards and compliance with uncertain, evolving and potentially conflicting federal, state, provincial or local regulations.
Such regulations may subject us to new disclosure requirements, new supply chain requirements, new trade restrictions and increased risk of litigation or regulatory action, which could result in increased costs (in our operations and supply chain) and risks to our reputation or consumer demand for our products if we do not meet increasingly demanding stakeholder expectations and standards.
Such regulations are expected to subject us to new disclosure requirements, new supply chain requirements, new trade restrictions and increased risk of litigation or regulatory action, which are expected to result in increased costs (in our operations and supply chain), as well as risks to our reputation or consumer demand for our products if we do not meet increasingly demanding stakeholder expectations and standards.
In addition, such events could increase the risk of claims alleging that we are non-compliant with applicable laws or regulations, subjecting us to potential liability or regulatory penalties and related costs under laws protecting the privacy of personal information; disrupt our operations; or reduce the competitive advantage we hope to derive from our investment in advanced technologies.
In addition, such events could increase the risk of claims alleging that we are non-compliant with applicable laws or regulations, subjecting us to potential liability from private litigation or regulatory penalties and related costs under laws protecting the privacy of personal information or unfair or deceptive practices relating to consumer information; disrupt our operations; or reduce the competitive advantage we hope to derive from our investment in advanced technologies.
Consumer adoption of EVs could be impacted by numerous factors, including the breadth of the portfolio of EVs available; perceptions about EV features, quality, safety, performance and cost relative to ICE vehicles; the range over which EVs may be driven on a given battery charge; the proliferation and speed of charging infrastructure, in particular with respect to public EV charging stations, and the success of the Company's charging infrastructure programs and strategic joint ventures and other relationships; cost and availability of high fuel-economy ICE vehicles; volatility, or a sustained decrease, in the cost of petroleum-based fuel; failure by governments and other third parties to make the investments necessary to make infrastructure improvements, such as greater availability of cleaner energy grids and EV charging stations, and to provide meaningful and fully utilizable economic incentives promoting the adoption of EVs, including production and consumer credits contemplated by the Inflation Reduction Act (IRA); and negative feedback from stakeholders impacting investor and consumer confidence in our company or industry.
Consumer adoption of EVs has been slower than anticipated, and has been and in the future could be impacted by numerous factors, including the breadth of the portfolio of EVs available; perceptions about EV features, quality, safety, performance and cost relative to ICE vehicles; the range over which EVs may be driven on a given battery charge; the proliferation and speed of charging infrastructure, in particular with respect to public EV charging stations, and the success of the Company's charging infrastructure programs and strategic joint ventures and other relationships; cost and availability of high fuel-economy ICE vehicles; volatility in energy prices due to increased demand and investments to support electrification efforts; volatility, or a sustained decrease, in the cost of petroleum-based fuel; failure by governments and other third parties to make the investments necessary to make infrastructure improvements, such as greater availability of EV charging stations, and to provide meaningful and fully utilizable economic incentives promoting the adoption of EVs, including production and consumer credits contemplated by the Inflation Reduction Act (IRA); and negative feedback from stakeholders impacting investor and consumer confidence in our company or industry.
Additionally, we and GM Financial collect and store sensitive data, including intellectual property and proprietary business information (including that of our dealers and suppliers), as well as personally identifiable information of our customers and employees, in data centers and on information technology networks (including networks that may be controlled or maintained by third parties).
Additionally, we and GM Financial collect, process, transmit, use, protect and store confidential data, including intellectual property and proprietary business information (including that of our dealers and suppliers), as well as personally identifiable information of our customers and employees, in data centers and on information technology networks (including networks that may be controlled or maintained by third parties).
Our EV strategy is dependent on our ability to deliver a strategic portfolio of high-quality EVs that are competitive and meet consumer demands; scale our EV manufacturing capabilities; reduce the costs associated with the manufacture of EVs, particularly with respect to battery cells and packs; increase vehicle range and the energy density of our batteries; efficiently source sufficient materials for the manufacture of battery cells; license and monetize our proprietary platforms and related innovations; successfully invest in new technologies relative to our peers; develop new software and services; and leverage our scale, manufacturing capabilities and synergies with existing ICE vehicles.
Our EV strategy is dependent on our ability to (i) deliver a strategic portfolio of high-quality EVs that are competitive and meet consumer demands; (ii) scale our EV manufacturing capabilities; (iii) reduce the costs associated with the manufacture of EVs, particularly with respect to battery cells and packs; (iv) increase vehicle range and the rate of charge and energy density of our batteries; (v) efficiently source sufficient materials for the manufacture of battery cells; (vi) license and monetize our proprietary platforms and related innovations; (vii) successfully invest in new technologies relative to our peers; (viii) develop new software and services; and (ix) leverage our scale, manufacturing capabilities and synergies with existing ICE vehicles.
Techniques used in cyberattacks to obtain unauthorized access to, disable or sabotage information technology systems are increasingly diverse and sophisticated. Data breaches and other cybersecurity events have become increasingly commonplace, including as a result of the intensification of state-sponsored cyberattacks during periods of geopolitical conflict.
Techniques used in cyberattacks to obtain unauthorized access to, disable or sabotage information technology systems are increasingly diverse and sophisticated, including as a result of emerging technologies, such as artificial intelligence and machine learning. Data breaches and other cybersecurity events have become increasingly commonplace, including as a result of the intensification of state-sponsored cyberattacks during periods of geopolitical conflict.
To successfully execute our long-term strategy, we must continue to develop and commercialize new products and services, including products and services that are outside of our historically core ICE business, such as EVs and AVs, software-enabled connected services and other new businesses.
To successfully execute our long-term strategy, we must continue to develop and commercialize new products and services, including products and services that are outside of our historically core ICE business, such as EVs and AVs, software-enabled connected services, future features and services based on artificial intelligence and other new businesses.
These requirements may increase the cost of, and/or diminish demand for, our vehicles. These regulatory requirements, among others, could significantly affect our plans for global product development and, given the uncertainty surrounding enforcement and regulatory definitions and interpretations, may result in substantial costs, including civil or criminal penalties.
These requirements may increase the cost of, and/or 19 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES diminish demand for, our vehicles. These regulatory requirements, among others, could significantly affect our plans for global product development and, given the uncertainty surrounding enforcement and regulatory definitions and interpretations, may result in substantial costs, including civil or criminal penalties.
Pandemics, epidemics or disease outbreaks in the U.S. or globally, such as the COVID-19 pandemic, have previously disrupted, and may in the future disrupt, our business, which could materially affect our results of operations, financial condition, liquidity and future expectations.
Pandemics, epidemics or disease outbreaks in the U.S. or globally, such as the COVID-19 pandemic, have previously disrupted, and may in the future disrupt, our business, which could materially affect our results of operations, 17 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES financial condition, liquidity and future expectations.
Disruption in our suppliers’ operations have disrupted, and could in the future disrupt, our production schedule. Our automotive operations are dependent upon the continued ability of our suppliers to deliver the systems, components, raw 18 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES materials and parts that we need to manufacture our products.
Disruption in our suppliers’ operations have disrupted, and could in the future disrupt, our production schedule. Our automotive operations are dependent upon the continued ability of our suppliers to deliver the systems, components, raw materials and parts that we need to manufacture our products.
From time to time these items may have performance or quality issues that could harm our reputation and cause us to incur significant costs, particularly if the affected items relate to global platforms or involve defects that are identified years after production.
From time to time, these items may have performance or quality issues that could harm our reputation and cause us to incur significant costs, particularly 20 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES if the affected items relate to global platforms or involve defects that are identified years after production.
In the current uncertain regulatory framework, compliance costs for which we may be responsible and that are not reasonably estimable could be substantial.
In the current uncertain regulatory framework, compliance costs under existing and potential new regulations for which we may be responsible and that are not reasonably estimable could be substantial.
Meeting or exceeding the requirements of these regulations is costly, often technologically challenging and may require phase-out of internal combustion propulsion vehicles in certain major jurisdictions, and these standards are often not harmonized across jurisdictions.
Meeting the requirements of these regulations is costly, often technologically challenging and may require phase-out of ICE vehicles in certain major jurisdictions, and these standards are often not harmonized across jurisdictions.
Under these regulations, which include the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act, and the EU's General Data Protection Regulation 2016/679, the U.K.
Under these regulations, which include, but are not limited to, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act, the EU's General Data Protection Regulation 2016/679, the U.K.
Part of our strategy to address these risks includes our transition to EVs, which presents additional risks, including reduced demand for, and therefore profits from, our ICE vehicles, which we are using to fund our growth strategy and transition to EVs; higher costs or reduced availability of materials related to EV technologies, whether as a result of increased competition or more stringent regulatory requirements, impacting profitability, particularly with respect to batteries and battery raw material; risks related to the success of our EV strategy, particularly with respect to advancement of battery cell technology, charging infrastructure and competition; and uncertainty over how EVs will be treated under upcoming CAFE regulations.
Part of our strategy to address these risks includes the continued scaling of EVs, which presents additional risks, including reduced demand for, and therefore profits from, our ICE vehicles, which we are currently using to fund our growth strategy and transition to EVs; higher costs or reduced availability of materials related to EV technologies, whether as a result of increased competition or more stringent regulatory requirements, impacting profitability, particularly with respect to batteries and battery raw material; risks related to the success of our EV strategy, particularly with respect to advancement of battery cell technology, charging infrastructure and competition; and uncertainty over treatment of EVs in vehicle emission standards.
The occurrence of any of these events could compromise the confidentiality, operational integrity and accessibility of these systems and products and the data that resides within them. Similarly, such an occurrence could result in the compromise or loss of the information processed by these systems and products.
The occurrence of any of these events could compromise the confidentiality, operational integrity and accessibility of these systems and products and the data that 18 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES resides within them. Similarly, such an occurrence could result in the compromise, acquisition or loss of the information processed by these systems and products.
The failure 22 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES to comply with these laws could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees and costs, possible revocation of licenses and damage to reputation, brand and valued customer relationships.
The failure to comply with these laws could result in significant statutory civil and criminal penalties, monetary damages, attorneys’ fees and costs, revocation of licenses and damage to reputation, brand and valued customer relationships.
Further, if we are unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in our software and hardware, or fail to deploy updates to our software properly, or if we do not adequately prepare for and respond to new kinds of technological innovations, market developments and changing customer needs and preferences, our sales, profitability and long-term competitiveness may be materially harmed.
Further, if we are unable to prevent or effectively remedy errors, bugs, vulnerabilities or defects in our software and hardware, or fail to deploy updates to our software properly, or if we do not adequately prepare for and respond to new kinds of technological innovations, market developments and changing customer needs and preferences, our sales, profitability and long-term competitiveness may be materially harmed. 11 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Our ability to attract and retain talented and highly skilled employees is critical to our success and competitiveness.
The secure operation of these systems and products, and the 19 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES processing and maintenance of the information processed by these systems and products, is critical to our business operations and strategy.
The secure operation of these systems and products, and the processing and maintenance of the information processed by these systems and products, is critical to our business operations and strategy.
In addition to compensation considerations, current and potential employees are increasingly placing a premium on culture and other various intangibles, such as working for companies with a clear purpose and strong brand reputation, flexible work arrangements, and other considerations, such as embracing sustainability and diversity, equity and inclusion initiatives.
The market for highly skilled workers and leaders in our industry is extremely competitive. In addition to compensation considerations, current and potential employees are increasingly placing a premium on culture and other various intangibles, such as working for companies with a clear purpose and strong brand reputation, flexible work arrangements, and other considerations, such as embracing sustainability and inclusion initiatives.
More stringent fuel economy 14 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES regulations could also impact our ability to sell these vehicles or could result in additional costs associated with these vehicles, which could be material.
More stringent fuel economy regulations could also impact our ability to sell these vehicles or could result in additional costs associated with these vehicles, which could be material.
At this time, we are not able to predict when Cruise will resume driverless testing or commercial AV operations. We are subject to risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure.
We are subject to risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure.
Additionally, despite the fact that OEMs have experienced supply constraints in recent years due to the COVID-19 pandemic and certain supply chain and logistics challenges, overall manufacturing capacity in the automotive industry has historically far exceeded demand, and we expect conditions to normalize in the near term.
Additionally, despite the fact that OEMs have experienced supply constraints in recent years due to the COVID-19 pandemic and certain supply chain and logistics challenges, overall manufacturing capacity in the automotive industry has historically far exceeded demand. Supply chain and logistics challenges may occur as a result of geopolitical and/or policy actions.
For a further discussion of certain of these matters, refer to Note 16 to our consolidated financial statements. 21 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect our business.
For a further discussion of certain of these matters, refer to Note 16 to our consolidated financial statements. The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect our business. Government safety standards require manufacturers to remedy certain product safety defects through recall campaigns and vehicle repurchases.
Increased competition, continued U.S.-China trade tensions, weakening economic conditions in China or China's level of integration with key components in our global supply chain, among other factors, may result in cost increases, price reductions, reduced sales, profitability and margins, and challenges to gaining or holding market share.
Increased competition, continued U.S.-China trade tensions, weakening economic conditions in China or China's level of integration with key components in our global supply chain, among other factors, may result in cost increases, price reductions, reduced sales, profitability and margins, and challenges to gaining or holding market share. 15 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Certain risks and uncertainties of doing business in China are solely within the control of the Chinese government, and Chinese law regulates the scope of our investments and business conducted within China.
In particular, our vehicles and connected services increasingly rely on software and hardware that is highly technical and complex and our success in this area is dependent upon our ability to retain and recruit the best talent. The market for highly skilled workers and leaders in our industry is extremely competitive.
Attracting and retaining employees who are highly skilled in their areas is critical to thriving in an increasingly competitive landscape. In particular, our vehicles and connected services increasingly rely on software and hardware that is highly technical and complex and our success in this area is dependent upon our ability to retain and recruit the best talent.
In addition, because we share ownership and management with one or more parties, we may have limited control over the actions of a joint venture, particularly when we own a minority interest.
Further, because most of the benefits from a successful joint venture are shared among the co-owners, we do not receive all the benefits from our successful joint ventures. In addition, because we share ownership and management with one or more parties, we may have limited control over the actions of a joint venture, particularly when we own a minority interest.
The growing patchwork of state and country regulations imposes burdensome obligations on companies to quickly respond to consumer requests, such as requests to delete, disclose and stop selling personal information, with significant fines for noncompliance.
The growing patchwork of state and country regulations imposes burdensome obligations on companies to quickly respond to consumer requests, such as requests to delete, disclose and stop selling personal information, with significant fines for noncompliance. Complying with these new laws has significantly increased, and may continue to increase, our operating costs and is driving increased complexity in our operations.
Because we have a high proportion of relatively fixed structural costs, small changes in sales volume can have a disproportionately large effect on our profitability.
Risks related to our operations Our business is highly dependent upon global automobile market sales volume, which can be volatile. Because we have a high proportion of relatively fixed structural costs, small changes in sales volume can have a disproportionately large effect on our profitability.
Complying with these new laws has significantly increased, and may continue to increase, our operating costs and is driving increased complexity in our operations. 20 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Risks related to government regulations and litigation Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business.
Risks related to government regulations and litigation Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business.
Many manufacturers, including GM, have relatively high fixed labor costs as well as limitations on their ability to efficiently close facilities and reduce fixed costs, including as a result of collective bargaining agreements.
If we are not successful in developing our North America supply chain, our operating results and profitability could be negatively impacted. Many manufacturers, including GM, have relatively high fixed labor costs as well as limitations on their ability to efficiently close facilities and reduce fixed costs, including as a result of collective bargaining agreements.
Such weather events may also adversely impact the financial condition of our customers, and thereby reduce demand for our products and services. Any of the foregoing could have a material adverse effect on our financial condition and results of operations. Risks related to our operations Our business is highly dependent upon global automobile market sales volume, which can be volatile.
Such weather events may also adversely impact the financial condition of our 14 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES customers, and thereby reduce demand for our products and services. Any of the foregoing could have a material adverse effect on our financial condition and results of operations.
Our future funding requirements for our defined benefit pension plans depend upon the future performance of assets placed in trusts for these plans, the level of interest rates used to determine funding levels, the level of benefits provided for by the plans and any changes in laws and regulations.
A detailed description of the investment funds and strategies and our potential funding requirements are disclosed in Note 15 to our consolidated financial statements, which also describes significant concentrations of risk to the plan investments. 21 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Our future funding requirements for our defined benefit pension plans depend upon the future performance of assets placed in trusts for these plans, the level of interest rates used to determine funding levels, the level of benefits provided for by the plans and any changes in laws and regulations.
Our AV operations are capital intensive and subject to a variety of risks inherent with the development of new technologies, including our ability to continue to develop self-driving software and hardware, such as Light Detection and Ranging (LiDAR) sensors and other components; access to sufficient capital; risks related to the manufacture of purpose-built AVs; and significant competition from both established automotive companies and technology companies, some of which may have more resources and capital to devote to AV technologies than we do.
While we expect our refocused AV strategy to be less capital intensive than the Cruise robotaxi plan, we expect that our AV and ADAS development activities will continue to require significant capital investments and remain subject to a variety of risks inherent with the development of new technologies, including our ability to continue to develop self-driving software and hardware; attract and retain key software talent with expertise in artificial intelligence and machine learning; access to sufficient capital; and significant competition from both established automotive companies and technology companies, some of which may have more resources and capital to devote to AV technologies than we do.
Government safety standards require manufacturers to remedy certain product safety defects through recall campaigns and vehicle repurchases. Under these standards, we could be subject to civil or criminal penalties or may incur various costs, including significant costs for repairs made at no cost to the consumer.
Under these standards, we could be subject to civil or criminal penalties or may incur various costs, including significant costs for repairs made at no cost to the consumer. The costs we incur in connection with these recalls typically include the cost of the part being replaced and labor to remove and replace the defective part.
If we are unable to successfully deliver on our EV strategy, it could materially and adversely affect our results of operations, financial condition and growth prospects, and could negatively impact our brand and reputation. Our near-term profitability is dependent upon the success of our current line of ICE vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks.
Our progress towards these objectives has impacted, and may continue to impact, the need to record losses on our EV-related inventory, including battery cells. If we are unable to successfully deliver on our EV strategy, it could materially and adversely affect our results of operations, financial condition and growth prospects, and could negatively impact our brand and reputation.
The costs we incur in connection with these recalls typically include the cost of the part being replaced and labor to remove and replace the defective part. The costs to complete a recall could be exacerbated to the extent that such action relates to a global platform.
The costs to complete a recall could be exacerbated to the extent that such action relates to a global platform.
Our employee benefit plans currently hold a significant amount of equity and fixed income securities. A detailed description of the investment funds and strategies and our potential funding requirements are disclosed in Note 15 to our consolidated financial statements, which also describes significant concentrations of risk to the plan investments.
Our employee benefit plans currently hold a significant amount of equity and fixed income securities.
Our progress towards these objectives has impacted, and may continue to impact, the need to record losses on our EV-related inventory, including battery cells. In addition, the success of our long-term strategy is dependent on consumer adoption of EVs.
The success of our long-term strategy is dependent on consumer adoption of EVs.
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Our ability to attract and retain talented, diverse and highly skilled employees is critical to our success and competitiveness. Our success depends on our ability to recruit and retain talented and diverse employees who are highly skilled 13 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES in their areas.
Added
If industry-wide adoption rates continue to be lower than anticipated, we may take portfolio actions to better match the pace of EV adoption, such as not fully utilizing or reducing the capacity of our existing or future plants or reducing production hours or shifts, and we may become subject to claims by suppliers as a result of such actions.
Removed
Our AV strategy is dependent upon our ability to successfully mitigate unique technological, operational and regulatory risks, including the various regulatory approvals and permits required for operating driverless AVs in multiple markets. Cruise Holdings, our majority-owned subsidiary, is pursuing the development and commercialization of AV technology.
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We may be unable to successfully deliver on our EV strategy, which could materially and adversely affect our results of operations, financial condition and growth prospects, and could negatively impact our brand and reputation. 12 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES In addition, the production and sale of EVs at increasingly larger volumes is also part of our long-term strategy to comply with global emissions and fuel economy regulations.
Removed
In order for Cruise to successfully execute its business plan and achieve its revenue targets, legislation and regulations must evolve to permit widespread commercial AV deployment.
Added
If we are not able to successfully execute our EV strategy or if future compliance requirements do not change, we may need to take various actions, including purchasing additional regulatory credits from third parties, paying penalties to various government regulators, or taking portfolio actions such as reducing the production of profitable ICE vehicles, the impact of which could be material to our results of operations and financial condition.
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In October 2023, a hit-and-run accident involving a pedestrian and a third-party vehicle occurred, which resulted in the pedestrian being thrown into the path of a Cruise AV.
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See "Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business." Our near-term profitability is dependent upon the success of our current line of ICE vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks.
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During the resulting investigation, regulators perceived that Cruise representatives were not explicit about a secondary movement of the Cruise AV and, as a result, the California DMV suspended Cruise's permits to operate AVs in California without a safety driver.
Added
Our transition to EVs will also require developing a more resilient, scalable and sustainable North American-focused EV supply chain, which includes advancing our strategic sourcing initiatives to secure supply through investments in raw materials suppliers and the execution of strategic, multi-year supply agreements with suppliers throughout the value chain.
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Shortly thereafter, Cruise voluntarily paused all of its driverless, supervised and manual AV operations in the U.S. while it examines its processes, systems and tools. This orderly pause is designed to rebuild public trust while Cruise undertakes a comprehensive safety review. In addition, certain federal and state agencies, including the California DMV, the California Public Utilities Commission, NHTSA, the U.S.
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These EV-related agreements may require us to hold higher than normal levels of EV raw materials inventory and to make long-term commitments to purchase raw materials. Expected demand for these raw materials currently exceeds the North American capacity of the existing supply chain.
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Department of 15 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Justice and the SEC, have opened investigations or made inquiries in connection with the incident. We and Cruise are investigating these matters internally and intend to cooperate with all government regulators and agencies in connection with these matters.
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Similarly, the potential imposition of tariffs may lead to further challenges for GM and its joint venture partners. We recently announced plans to refocus our AV strategy on personal vehicles and the execution of this strategy is dependent upon our ability to successfully mitigate unique technological, operational and regulatory risks.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company’s cybersecurity organization is led by the CCO, who is responsible for assessing and managing material risks from cybersecurity threats and reports to GM’s Executive Vice President, Legal, Policy, Cybersecurity, and Corporate Secretary as well as to the Risk and Cybersecurity Committee.
Biggest changeThe Company's cybersecurity organization is led by the CISO, who is responsible for assessing and managing material risks from cybersecurity threats and reports to the Risk and Cybersecurity Committee. The CISO has served in this role since December 2024 and has more than 20 years of experience in various information technology, cybersecurity and software engineering roles.
Risk Factors – "Risks related to our intellectual property, cybersecurity, information technology and data management practices", which are incorporated by reference into this Item 1C. Governance The GM Board of Directors is responsible for overseeing the Company’s enterprise risk, and has established its Risk and Cybersecurity Committee with specific responsibility for overseeing cybersecurity threats, among other things.
Risk Factors – "Risks related to our intellectual property, cybersecurity, information technology and data management practices", which are incorporated by reference into this Item 1C. Governance The GM Board of Directors is responsible for overseeing the Company's enterprise risk, and has established its Risk and Cybersecurity Committee with specific responsibility for overseeing our cybersecurity program, among other things.
For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition, see Item 1A.
For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or, if realized, are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition, see Item 1A.
The Company maintains technical and organizational safeguards, including employee training, incident response capability reviews and exercises, cybersecurity insurance and business continuity mechanisms for the protection of the Company’s assets. From time to time, the Company’s processes are audited and validated by internal and external experts.
The Company maintains administrative, physical, technical and organizational safeguards, including employee training, incident response capability reviews and exercises, cybersecurity insurance and business continuity mechanisms for the protection of the Company's assets. From time to time, the Company's processes are audited and validated by internal and external experts.
In the event of an incident, the Cybersecurity team assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with support from external technical, legal and law enforcement support, as appropriate.
In the event of a cybersecurity incident, the Cybersecurity team also assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with support from external technical, legal and law enforcement, as appropriate.
The Company’s cybersecurity maturity scorecard, cybersecurity threats and certain incident information are reviewed by the Company’s Chief Cybersecurity Officer (CCO), the Risk and Cybersecurity Committee of the Company’s Board of Directors and the Cybersecurity Management Board during standing meetings as well as in impromptu sessions, when appropriate.
The Company's cybersecurity maturity scorecard, cybersecurity threats and incident information are reviewed by the Company's Chief Information Security Officer (CISO), the Risk and Cybersecurity Committee of the Company's Board of Directors and the Cybersecurity Management Board during standing meetings as well as in impromptu sessions, when appropriate.
During the reviews, various topics are discussed, which may include: • implementation and maturity of the Company’s cybersecurity program, risk management framework, including cybersecurity risk policies, procedures and governance; • cybersecurity and privacy risk, including potential impact to the Company’s employees, customers, supply chain, joint ventures and other stakeholders; • intelligence briefings on notable cyber events impacting the industry; and 23 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES • cybersecurity budget and resource allocation, including industry benchmarking and economic modeling of various potential cybersecurity events.
During the reviews, various topics are discussed, which may include: • implementation and maturity of the Company's cybersecurity program, risk management framework, including cybersecurity risk policies, procedures and governance; • cybersecurity and privacy risk, including potential impact to the Company's employees, customers, supply chain, joint ventures and other stakeholders; • intelligence briefings on notable cyber events impacting the industry; and • cybersecurity budget and resource allocation, including industry benchmarking and economic modeling of various potential cybersecurity events.
The CCO and the Cybersecurity Management Board monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including through the operation of the Company’s incident response plans, which include escalation to the CCO and the Cybersecurity Management Board, as appropriate.
The CISO and the Cybersecurity Management Board monitor the prevention, mitigation, detection and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including through the operation of the Company's incident response plans, which include escalation to the Risk and Cybersecurity Committee, as appropriate, and simulated exercises. * * * * * * *
Item 1C. Cybersecurity Risk Management and Strategy Material risks from cybersecurity threats are managed across GM, GM Financial, Cruise and third-party suppliers and vendors, and monitoring such risks and threats is integrated into the Company’s overall risk management program.
Material risks from cybersecurity threats are managed across GM, GM Financial, Cruise, service providers such as data processors, third-party suppliers, dealers and vendors, and monitoring such risks and threats are integrated into the Company's overall risk management program.
In the last three fiscal years, the Company has not experienced any material cybersecurity incidents and expenses incurred from cybersecurity incidents were immaterial (including penalties and settlements, of which there were none).
Our policies and procedures are reviewed periodically for alignment with regulatory requirements and the threat landscape. In the last three fiscal years, the Company has not experienced any material cybersecurity incidents and expenses incurred from cybersecurity incidents were immaterial (including penalties and settlements, of which there were none).
The Company leverages a third-party cybersecurity program with the goal of minimizing disruption to the Company’s business and production operations, strengthening supply chain resilience in response to cyber-related events and supporting the integrity of components and systems used in its products and services.
The Company leverages a third-party cybersecurity program with the goal of minimizing disruption to the Company's business and production operations, strengthening supply chain resilience in response to cyber-related events and supporting the integrity of components and systems used in its products and services. 22 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES When cybersecurity incidents occur, the GM Cybersecurity team's focus is on responding to and containing the threat and minimizing impact.
Removed
As cybersecurity incidents occur, the GM Cybersecurity team focuses on responding to and containing the threat and minimizing any business impact, as appropriate.
Added
Item 1C. Cybersecurity Risk Management and Strategy We recognize the importance of assessing, identifying and managing material risks associated with cybersecurity threats. We have implemented cybersecurity policies, procedures, technologies and controls to aid in our efforts to access, identify and manage such risks.
Removed
The CCO has served in this role for four years, and has more than 11 years of experience in various roles involving managing cybersecurity functions, developing cybersecurity strategies to protect privacy, customer safety and intellectual property, and developing key capabilities such as product security engineering, risk management and cybersecurity governance.
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When we become aware of a cybersecurity incident, we have defined policies and procedures to respond to and recover from such incident as quickly as possible.
Removed
The CCO holds a bachelor’s degree in electrical engineering and a master’s degree in systems engineering, with over 10 years of previous software and hardware systems engineering experience. The CCO chairs the Automotive – Information Sharing and Analysis Center (ISAC) and serves on the Department of Homeland Security – Cybersecurity and Infrastructure Security Agency (DHS-CISA) Advisory Committee.
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The CISO's experience includes building and leading cybersecurity functions at large enterprises, startups, and research and development centers, as well as leading software engineering teams responsible for building and operating large-scale software services.
Removed
As discussed above, the CCO reports out to the Risk and Cybersecurity Committee about cybersecurity threat risks, among other cybersecurity related matters, at least quarterly. * * * * * * *
Added
The CISO also has expertise in building and designing secure software, scalable and resilient systems, incident response practices, privacy programs and other critical security disciplines and practice areas.
Added
The CISO holds a master's degree in information security policy and management, has taught information security courses at the graduate level, is an inventor on cybersecurity-related patents and has been a speaker at leading cybersecurity conferences.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeGM Financial owns or leases facilities for administration and regional credit centers. GM Financial has 35 facilities, of which 22 are located in the U.S. The major facilities outside the U.S. are located in Brazil, Canada, China and Mexico. * * * * * * *
Biggest changeGM Financial has 34 facilities, of which 21 are located in the U.S. The major facilities outside the U.S. are located in Brazil, Canada, China and Mexico. * * * * * * * 23 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES
Item 2. Properties At December 31, 2023, we had over 100 locations in the U.S. (excluding our automotive financing operations and dealerships), which are primarily for manufacturing, assembly, distribution, warehousing, engineering and testing. We, our subsidiaries or associated companies in which we own an equity interest, own most of these properties and/or lease a portion of these properties.
Item 2. Properties At December 31, 2024, we had over 100 locations in the U.S. (excluding our automotive financing operations and dealerships), which are primarily for manufacturing, assembly, distribution, warehousing, engineering and testing. We, our subsidiaries or associated companies in which we own an equity interest, own most of these properties and/or lease a portion of these properties.
Leased properties are primarily composed of warehouses and administration, engineering and sales offices. We have manufacturing, assembly, distribution, office or warehousing operations in 32 countries, including equity interests in associated companies, which perform manufacturing, assembly or distribution operations.
Leased properties are primarily composed of warehouses and administration, engineering and sales offices. We have manufacturing, assembly, distribution, office or warehousing operations in 33 countries, including equity interests in associated companies, which perform manufacturing, assembly or distribution operations.
The major facilities outside the U.S., which are principally vehicle manufacturing and assembly operations, are located in Brazil, Canada, China, Mexico and South Korea. 24 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES These facilities are used to support our automotive segments and are suitable and adequate for the conduct of our business.
The major facilities outside the U.S., which are principally vehicle manufacturing and assembly operations, are located in Brazil, Canada, China, Mexico and South Korea. These facilities are used to support our automotive segments and are suitable and adequate for the conduct of our business. GM Financial owns or leases facilities for administration and regional credit centers.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changePursuant to the SEC regulations, the Company will use a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. In February 2023, GM self-disclosed potential violations of the Toxic Substances Control Act's (TSCA) requirements applicable to the import of new chemical substances at our Ultium Cells LLC joint venture to the EPA.
Biggest changeIn GM's 2023 Annual Report on Form 10-K, GM reported that in February 2023 it had self-disclosed to the EPA potential violations of the Toxic Substances Control Act's (TSCA) requirements applicable to the import of new chemical substances at our Ultium Cells LLC joint venture.
In November 2023, these potential violations were settled via consent agreement with the EPA, the terms of which include, among other items, payment of civil penalties currently estimated at approximately $5.1 million, which could grow depending upon import activity prior to receipt of a TSCA 5(e) order. These penalties are assessed jointly and severally to GM and Ultium Cells LLC.
In November 2023, these potential violations were settled via consent agreement with the EPA, the terms of which include, among other items, payment of civil penalties based upon import activity prior to receipt of a TSCA 5(e) order. As of December 31, 2024, GM has incurred an estimated $14.6 million in civil penalties.
The discussion under Note 16 to our consolidated financial statements is incorporated by reference into this Part I, Item 3. * * * * * * *
These penalties, which will continue to grow until the EPA issues a TSCA 5(e) order, are assessed jointly and severally to GM and Ultium Cells LLC. The discussion under Note 16 to our consolidated financial statements is incorporated by reference into this Part I, Item 3. * * * * * * *
Added
Pursuant to the SEC regulations, the Company will use a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+4 added−3 removed1 unchanged
Biggest changeThe following table summarizes stock performance graph data points in dollars: Years Ended December 31, 2018 2019 2020 2021 2022 2023 General Motors Company $ 100 $ 114 $ 132 $ 186 $ 107 $ 116 S&P 500 Stock Index $ 100 $ 131 $ 156 $ 200 $ 164 $ 207 Dow Jones Automobile & Parts Titans 30 Index $ 100 $ 114 $ 172 $ 215 $ 146 $ 194 26 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2023: Total Number of Shares Purchased(a)(b) Weighted-Average Price Paid per Share(c) Total Number of Shares Purchased Under Announced Programs(b) Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs(b) October 1, 2023 through October 31, 2023 25,399 $ 32.32 — $1.4 billion November 1, 2023 through November 30, 2023 — $ — — $11.4 billion December 1, 2023 through December 31, 2023 215,202,490 $ 31.60 215,189,872 $1.4 billion Total 215,227,889 $ 31.60 215,189,872 __________ (a) Shares purchased include shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock upon the vesting of Restricted Stock Units (RSUs) relating to compensation plans.
Biggest changeThe following table summarizes stock performance graph data points in dollars: Years Ended December 31, 2019 2020 2021 2022 2023 2024 General Motors Company $ 100 $ 121 $ 170 $ 98 $ 106 $ 159 S&P 500 Stock Index $ 100 $ 118 $ 152 $ 125 $ 158 $ 197 Dow Jones Automobile & Parts Titans 30 Index $ 100 $ 151 $ 188 $ 128 $ 170 $ 183 25 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Purchases of Equity Securities The following table summarizes our purchases of common stock in the three months ended December 31, 2024: Total Number of Shares Purchased(a)(b) Weighted-Average Price Paid per Share(b)(c) Total Number of Shares Purchased Under Announced Programs(b)(d) Approximate Dollar Value of Shares That May Yet be Purchased Under Announced Programs(b)(d) October 1, 2024 through October 31, 2024 Final settlement of ASR(b) 19,078,910 19,078,910 Other shares purchased 8,946,822 $ 48.77 8,789,744 $4.6 billion November 1, 2024 through November 30, 2024 Final settlement of ASR(b) 6,213,168 6,213,168 Other shares purchased 44,026,509 $ 55.88 44,026,379 $2.1 billion December 1, 2024 through December 31, 2024 33,860,946 $ 52.51 33,860,946 $0.3 billion Total 112,126,355 $ 53.83 111,969,147 __________ (a) Shares purchased include shares delivered by employees or directors to us for the payment of taxes resulting from issuance of common stock upon the vesting of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) relating to compensation plans.
However, the declaration of any dividend on our common stock is a matter to be acted upon by our Board of Directors in its sole discretion and will depend on various factors, including our financial condition, operating results, available cash, and current and anticipated cash needs, as described further in the "Liquidity and Capital Resources" section of the MD&A. 25 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Stock Performance Graph The following graph compares the performance of our common stock to the Standard & Poor's (S&P) 500 Stock Index and the Dow Jones Automobile & Parts Titans 30 Index for the last five years.
However, the declaration of any dividend on our common stock is a matter to be acted upon by our Board of Directors in its sole discretion and will depend on various factors, including our financial condition, operating results, available cash, and current and anticipated cash needs, as described further in the "Liquidity and Capital Resources" section of the MD&A. 24 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Stock Performance Graph The following graph compares the performance of our common stock to the Standard & Poor's (S&P) 500 Stock Index and the Dow Jones Automobile & Parts Titans 30 Index for the last five years.
In June 2020, our shareholders approved the 2020 Long-Term Incentive Plan (LTIP), which authorizes awards of stock options, stock appreciation rights, RSUs, Performance Stock Units (PSUs) or other stock-based awards to selected employees, consultants, advisors and non-employee Directors of the Company. Refer to Note 22 to our consolidated financial statements for additional details on employee stock incentive plans.
In June 2020, our shareholders approved the 2020 Long-Term Incentive Plan (LTIP), which authorizes awards of stock options, stock appreciation rights, RSUs, PSUs or other stock-based awards to selected employees, consultants, advisors and non-employee Directors of the Company. Refer to Note 22 to our consolidated financial statements for additional details on employee stock incentive plans.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock are publicly traded on the New York Stock Exchange under the symbol "GM". Holders At January 16, 2024, we had 1.2 billion issued and outstanding shares of common stock held by 462 holders of record.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Shares of our common stock are publicly traded on the New York Stock Exchange under the symbol "GM". Holders At January 16, 2025, we had 1.0 billion issued and outstanding shares of common stock held by 444 holders of record.
It assumes $100 was invested o n December 31, 2018, with dividends being reinvested.
It assumes $100 was invested o n December 31, 2019, with dividends being reinvested.
In November 2023, the Board of Directors increased the capacity under the share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved an accelerated share repurchase (ASR) program to repurchase an aggregate amount of $10.0 billion of our common stock.
(d) In November 2023, our Board of Directors increased the capacity under the share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved the $10.0 billion ASR program. In June 2024, our Board of Directors approved a new share repurchase authorization to repurchase up to an additional $6.0 billion of our outstanding common stock.
On December 1, 2023, pursuant to the agreements entered into in connection with the ASR (collectively, the ASR Agreements), we advanced the aggregate amount of $10.0 billion and received approximately 215 million shares of our common stock with a value of $6.8 billion, which were immediately retired.
(b) During the three months ended December 31, 2023, we entered into the accelerated share repurchase (ASR) agreements (collectively, the ASR Agreements) to repurchase an aggregate $10.0 billion of common stock, and we received and immediately retired approximately 215 million shares of our common stock (68% of the $10.0 billion aggregate purchase price calculated on the basis of a price of $31.60 per share, the closing share price of our common stock on November 29, 2023).
Removed
(b) In January 2017, we announced that our Board of Directors had authorized the purchase of up to $5.0 billion of our common stock with no expiration date. In August 2022, our Board of Directors increased the capacity to $5.0 billion from the $3.3 billion that remained as of June 30, 2022, with no expiration date.
Added
In March 2024, upon the first settlement of the transactions contemplated under the ASR Agreements, we received approximately 4 million additional shares of our common stock, which were immediately retired. There were no settlements under the ASR Agreements in the three months ended June 30, 2024 or September 30, 2024.
Removed
Final settlement of the transactions contemplated by the ASR Agreements is expected to occur no later than the three months ending December 31, 2024. Refer to Note 20 to our consolidated financial statements for additional details on the ASR program.
Added
In the three months ended December 31, 2024, upon the final settlement of the transactions contemplated under the ASR Agreements, we received approximately 25 million additional shares, which were immediately retired.
Removed
(c) The weighted-average price paid per share excludes broker commissions. * * * * * * * Item 6. [Reserved] * * * * * * *
Added
The final number of shares received was based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR Agreements, less a discount pursuant to the terms and conditions of the ASR Agreements. (c) The weighted-average price paid per share excludes broker commissions.
Added
At December 31, 2024, we had $0.3 billion in capacity remaining under the share repurchase program, with no expiration date. * * * * * * * Item 6. [Reserved] * * * * * * *

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeStock Incentive Plans 96 Note 23. Segment Reporting 97 Note 24. Supplemental Information for the Consolidated Statements of Cash Flows 100 Page
Biggest changeStock Incentive Plans 98 Note 23. Segment Reporting 100 Note 24. Supplemental Information for the Consolidated Statements of Cash Flows 104 Page Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 105 Item 9A. Controls and Procedures 105 Item 9B. Other Information 106 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 106 PART III
Marketable and Other Securities 68 Note 5. GM Financial Receivables and Transactions 69 Note 6. Inventories 72 Note 7. Operating Leases 72 Note 8. Equity in Net Assets of Nonconsolidated Affiliates 73 Note 9. Property 75 Note 10. Goodwill and Intangible Assets 75 Note 11. Variable Interest Entities 76 Note 12. Accrued and Other Liabilities 77 Note 13.
Marketable and Other Securities 67 Note 5. GM Financial Receivables and Transactions 68 Note 6. Inventories 71 Note 7. Operating Leases 71 Note 8. Equity in Net Assets of Nonconsolidated Affiliates 72 Note 9. Property 75 Note 10. Goodwill and Intangible Assets 75 Note 11. Variable Interest Entities 76 Note 12. Accrued and Other Liabilities 77 Note 13.
Financial Statements and Supplementary Data 56 Consolidated Income Statements 56 Consolidated Statements of Comprehensive Income 56 Consolidated Balance Sheets 57 Consolidated Statements of Cash Flows 58 Consolidated Statements of Equity 59 Notes to Consolidated Financial Statements 60 Note 1. Nature of Operations and Basis of Presentation 60 Note 2. Significant Accounting Policies 60 Note 3. Revenue 67 Note 4.
Financial Statements and Supplementary Data 54 Consolidated Income Statements 54 Consolidated Statements of Comprehensive Income 54 Consolidated Balance Sheets 55 Consolidated Statements of Cash Flows 56 Consolidated Statements of Equity 57 Notes to Consolidated Financial Statements 58 Note 1. Nature of Operations and Basis of Presentation 58 Note 2. Significant Accounting Policies 58 Note 3. Revenue 65 Note 4.
Item 6. [Reserved] 27 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.
Item 6. [Reserved] 26 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 47 Item 8.
Debt 78 Note 14. Derivative Financial Instruments 80 Note 15. Pensions and Other Postretirement Benefits 81 Note 16. Commitments and Contingencies 86 Note 17. Income Taxes 90 Note 18. Restructuring and Other Initiatives 92 Note 19. Interest Income and Other Non-Operating Income 93 Note 20. Stockholders’ Equity and Noncontrolling Interests 93 Note 21. Earnings Per Share 96 Note 22.
Debt 78 Note 14. Derivative Financial Instruments 80 Note 15. Pensions and Other Postretirement Benefits 81 Note 16. Commitments and Contingencies 87 Note 17. Income Taxes 92 Note 18. Restructuring and Other Initiatives 94 Note 19. Interest Income and Other Non-Operating Income 95 Note 20. Stockholders’ Equity and Noncontrolling Interests 95 Note 21. Earnings Per Share 98 Note 22.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

109 edited+36 added−42 removed72 unchanged
Biggest changeThe following table summarizes the changes in our Automotive available liquidity (dollars in billions): Year Ended December 31, 2023 Operating cash flow $ 20.8 Capital expenditures (10.7) ASR program (10.0) Dividends paid and payments to purchase common stock (1.6) Payment of senior unsecured note (1.5) Investment in Ultium Cells Holdings LLC (0.7) GM investment in Cruise (0.5) Investment in Lithium Americas (0.3) Other non-operating (0.1) Increase in available credit facilities 1.4 Total change in automotive available liquidity $ (3.2) Automotive Cash Flow (Dollars in billions) Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Operating Activities Net income $ 10.1 $ 8.5 $ 7.8 $ 1.6 Depreciation, amortization and impairment charges 6.8 6.3 5.9 0.5 Pension and OPEB activities (1.0) (2.0) (2.4) 1.0 Working capital (0.4) 0.5 (4.0) (0.9) Accrued and other liabilities and income taxes 4.1 3.1 0.9 1.0 Other(a) 1.2 2.7 1.5 (1.5) Net automotive cash provided by (used in) operating activities(b) $ 20.8 $ 19.1 $ 9.7 $ 1.7 __________ (a) Includes $1.8 billion, $1.7 billion and $3.5 billion in dividends received from GM Financial in the years ended December 31, 2023, 2022 and 2021, partially offset by non-cash changes in other assets and liabilities.
Biggest changeThe following table summarizes our Automotive available liquidity (dollars in billions): December 31, 2024 December 31, 2023 Automotive cash and cash equivalents $ 14.5 $ 12.2 Marketable debt securities 7.3 7.6 Automotive cash, cash equivalents and marketable debt securities 21.7 19.8 Available under credit facilities(a) 13.8 16.4 Total Automotive available liquidity $ 35.5 $ 36.3 __________ (a) We had letters of credit outstanding under our sub-facility of $0.5 billion and $0.7 billion at December 31, 2024 and 2023. 35 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the changes in our Automotive available liquidity (dollars in billions): Year Ended December 31, 2024 Operating cash flow $ 23.9 Capital expenditures (10.7) Dividends paid and payments to purchase common stock (7.6) GM investment in Cruise (1.3) Payment of senior unsecured note (0.8) Investment in Ultium Cells Holdings LLC (0.7) Investment in Lithium Americas (0.3) Other non-operating (0.7) Decrease in available credit facilities (2.7) Total change in automotive available liquidity $ (0.8) Automotive Cash Flow (Dollars in billions) Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Operating Activities Net income $ 6.6 $ 10.1 $ 8.5 $ (3.5) Depreciation, amortization and impairment charges 6.5 6.8 6.3 (0.3) Pension and OPEB activities (1.4) (1.0) (2.0) (0.4) Working capital 1.5 (0.4) 0.5 1.9 Accrued and other liabilities and income taxes 6.3 4.1 3.1 2.2 Other(a) 4.4 1.2 2.7 3.2 Net automotive cash provided by (used in) operating activities(b) $ 23.9 $ 20.8 $ 19.1 $ 3.1 __________ (a) Includes $4.1 billion for the Automotive China JVs impairment and restructuring-related equity losses in the year ended December 31, 2024; $1.8 billion in dividends received from GM Financial in the years ended December 31, 2024 and 2023 and $1.7 billion in dividends received from GM Financial in the year ended December 31, 2022; partially offset by non-cash changes in other assets and liabilities.
GMNA EBIT-Adjusted The most significant factors that influence profitability are industry volume and market share. While not as significant as industry volume and market share, another factor affecting profitability is the relative mix of vehicles sold. Trucks, crossovers and cars sold currently have a variable profit of approximately 170%, 40% and 50% of our GMNA portfolio on a weighted-average basis.
GMNA EBIT-Adjusted The most significant factors that influence profitability are industry volume and market share. While not as significant as industry volume and market share, another factor affecting profitability is the relative mix of vehicles sold. Trucks, crossovers and cars sold currently have a variable profit of approximately 160%, 40% and 50% of our GMNA portfolio on a weighted-average basis.
GAAP to EBIT-adjusted within this section of the MD&A for adjustment details. Net income attributable to noncontrolling interests for these adjustments is included in the years ended December 31, 2023, 2022 and 2021. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
GAAP to EBIT-adjusted within this section of the MD&A for adjustment details. Net income attributable to noncontrolling interests for these adjustments is included in the years ended December 31, 2024, 2023 and 2022. The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022 is incorporated by reference into this MD&A. Overview Our vision for the future is a world with zero crashes, zero emissions and zero congestion.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023 is incorporated by reference into this MD&A. Overview Our vision for the future is a world with zero crashes, zero emissions and zero congestion.
Each leased asset in the portfolio represents a vehicle that GM Financial owns and has leased to a customer. At the inception of a lease, an estimate is made of the expected residual value for the vehicle at the end of the lease term, which typically ranges from two to five years.
Each leased asset in the portfolio represents a vehicle that GM Financial owns and has leased to a customer. At the inception of a lease, an estimate is made of the expected residual value for the vehicle at the end of the lease term, which typically ranges from one to five years.
Refer to the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors for a discussion of these risks and uncertainties. The discussion of our financial condition and results of operations for the year ended December 31, 2021 included in Item 7.
Refer to the "Forward-Looking Statements" section of this MD&A and Part I, Item 1A. Risk Factors for a discussion of these risks and uncertainties. The discussion of our financial condition and results of operations for the year ended December 31, 2022 included in Item 7.
Refer to the “Liquidity and Capital Resources” section of this MD&A for additional information. 45 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles Net income attributable to stockholders under U.S.
Refer to the “Liquidity and Capital Resources” section of this MD&A for additional information. 43 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles Net income attributable to stockholders under U.S.
If a decrease in residual values is concentrated among specific asset groups, the decrease could result in an immediate impairment charge. GM Financial reviewed the leased vehicle portfolio for indicators of impairment and determined that no impairment indicators were present at December 31, 2023 or 2022.
If a decrease in residual values is concentrated among specific asset groups, the decrease could result in an immediate impairment charge. GM Financial reviewed the leased vehicle portfolio for indicators of impairment and determined that no material impairment indicators were present at December 31, 2024 or 2023.
We will adapt to customer preferences while executing our growth-focused strategy to invest in EVs, hybrids, AVs, software-enabled services and other new business opportunities. To support strong margins and cash flow during this transition, we are strengthening our market position in profitable ICE vehicles, such as trucks and SUVs.
We will adapt to customer preferences while executing our growth-focused strategy to invest in EVs, hybrids, personal AV technology, software-enabled services and other new business opportunities. To support strong margins and cash flow during this transition, we are strengthening our market position in profitable ICE vehicles, such as trucks and SUVs.
GM Financial did not have borrowings outstanding against any of these facilities at December 31, 2023 and 2022. We had intercompany loans from GM Financial of $0.2 billion at December 31, 2023 and 2022, which primarily consisted of commercial loans to dealers we consolidate. We did not have intercompany loans to GM Financial at December 31, 2023 and 2022.
GM Financial did not have borrowings outstanding against any of these facilities at December 31, 2024 and 2023. We had intercompany loans from GM Financial of $0.3 billion and $0.2 billion at December 31, 2024 and 2023, which primarily consisted of commercial loans to dealers we consolidate.
The following table summarizes GM Financial's available liquidity (dollars in billions): December 31, 2023 December 31, 2022 Cash and cash equivalents $ 5.3 $ 4.0 Borrowing capacity on unpledged eligible assets 21.9 22.0 Borrowing capacity on committed unsecured lines of credit 0.7 0.5 Borrowing capacity on revolving credit facility, exclusive to GM Financial 2.0 2.0 Total GM Financial available liquidity $ 29.9 $ 28.5 GM Financial structures liquidity to support at least six months of GM Financial's expected net cash flows, including new originations, without access to new debt financing transactions or other capital markets activity.
The following table summarizes GM Financial's available liquidity (dollars in billions): December 31, 2024 December 31, 2023 Cash and cash equivalents $ 5.1 $ 5.3 Borrowing capacity on unpledged eligible assets 21.5 21.9 Borrowing capacity on committed unsecured lines of credit 0.7 0.7 Borrowing capacity on revolving credit facility, exclusive to GM Financial 2.0 2.0 Total GM Financial available liquidity $ 29.3 $ 29.9 GM Financial structures liquidity to support at least six months of GM Financial's expected net cash flows, including new originations, without access to new debt financing transactions or other capital markets activity.
Cruise Cash Flow (Dollars in billions) Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Net cash provided by (used in) operating activities $ (1.9) $ (1.8) $ (1.2) $ (0.1) Net cash provided by (used in) investing activities(a) $ 1.3 $ — $ (0.7) $ 1.4 Net cash provided by (used in) financing activities(b) $ 0.4 $ 1.8 $ 2.6 $ (1.4) __________ (a) Includes $1.4 billion of net proceeds from the liquidation of marketable securities in the year ended December 31, 2023.
Cruise Cash Flow (Dollars in billions) Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Net cash provided by (used in) operating activities $ (2.2) $ (1.9) $ (1.8) $ (0.3) Net cash provided by (used in) investing activities(a) $ — $ 1.3 $ — $ (1.4) Net cash provided by (used in) financing activities(b) $ 1.2 $ 0.4 $ 1.8 $ 0.8 __________ (a) Includes $1.4 billion of net proceeds from the liquidation of marketable securities in the year ended December 31, 2023.
The following table summarizes the calculation of ROE (dollars in billions): Years Ended December 31, 2023 2022 2021 Net income attributable to stockholders $ 10.1 $ 9.9 $ 10.0 Average equity(a) $ 72.0 $ 66.6 $ 56.5 ROE 14.1 % 14.9 % 17.7 % __________ (a) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders. 47 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the calculation of ROIC-adjusted (dollars in billions): Years Ended December 31, 2023 2022 2021 EBIT-adjusted(a) $ 12.4 $ 14.5 $ 14.3 Average equity(b) $ 72.0 $ 66.6 $ 56.5 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.2 17.6 17.1 Add: Average automotive net pension & OPEB liability 8.1 9.4 15.8 Less: Average automotive net income tax asset (21.1) (21.2) (22.2) ROIC-adjusted average net assets $ 75.2 $ 72.3 $ 67.2 ROIC-adjusted 16.4 % 20.0 % 21.3 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
The following table summarizes the calculation of ROE (dollars in billions): Years Ended December 31, 2024 2023 2022 Net income attributable to stockholders $ 6.0 $ 10.1 $ 9.9 Average equity(a) $ 68.9 $ 72.0 $ 66.6 ROE 8.7 % 14.1 % 14.9 % __________ (a) Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders. 45 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the calculation of ROIC-adjusted (dollars in billions): Years Ended December 31, 2024 2023 2022 EBIT-adjusted(a) $ 14.9 $ 12.4 $ 14.5 Average equity(b) $ 68.9 $ 72.0 $ 66.6 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.1 16.2 17.6 Add: Average automotive net pension and OPEB liability 9.4 8.1 9.4 Less: Average automotive net income tax asset (22.7) (21.1) (21.2) ROIC-adjusted average net assets $ 71.8 $ 75.2 $ 72.3 ROIC-adjusted 20.8 % 16.4 % 20.0 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer needs and preferences; (2) our ability to timely fund and introduce new and improved vehicle models, including electric vehicles, that are able to attract a sufficient number of consumers; (3) our ability to profitably deliver a strategic portfolio of electric vehicles that will help drive consumer adoption; (4) the success of our current line of ICE vehicles, particularly our full-size SUVs and full-size pickup trucks; (5) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (6) the unique technological, operational, regulatory and competitive risks related to the timing and commercialization of AVs, including the various regulatory approvals and permits required for operating driverless AVs in multiple markets; (7) risks associated with climate change, including increased regulation of GHG emissions, our transition to electric vehicles and the potential increased impacts of severe weather events; (8) global automobile market sales volume, which can be volatile; (9) inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used by us and our suppliers, and instability in logistics and related costs; (10) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (11) the success of our ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (12) the international scale and footprint of our operations, which exposes us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership and laws (including labor, trade, tax and other laws), political uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness; (13) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (14) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (15) pandemics, epidemics, disease outbreaks and other public health crises; (16) the 48 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES possibility that competitors may independently develop products and services similar to ours, or that our intellectual property rights are not sufficient to prevent competitors from developing or selling those products or services; (17) our ability to manage risks related to security breaches, cyberattacks and other disruptions to our information technology systems and networked products, including connected vehicles and in-vehicle systems; (18) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees, or suppliers; (19) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and autonomous vehicles; (20) costs and risks associated with litigation and government investigations; (21) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (22) any additional tax expense or exposure or failure to fully realize available tax incentives; (23) our continued ability to develop captive financing capability through GM Financial; and (24) any significant increase in our pension funding requirements.
These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among others, the following: (1) our ability to deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer needs and preferences; (2) our ability to attract and retain talented and highly skilled employees; (3) our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract a sufficient number of consumers; (4) our ability to profitably deliver a strategic portfolio of EVs; (5) our long-term strategy is dependent on consumer adoptions of EVs; (6) the success of our current line of ICE vehicles, particularly our full-size SUVs and full-size pickup trucks; (7) our highly competitive industry, which has been historically characterized by excess manufacturing capacity and the use of incentives, and the introduction of new and improved vehicle models by our competitors; (8) the unique technological, operational, regulatory and competitive risks related to our recently announced plans to refocus our AV strategy on personal vehicles; (9) risks associated with climate change, including increased regulation of GHG emissions, our transition to EVs and the potential increased impacts of severe weather events; (10) global automobile market sales volume, which can be volatile; (11) inflationary pressures and persistently high prices and uncertain availability of raw materials and commodities used by us and our suppliers, and instability in logistics and related costs; (12) our business in China, which is subject to unique operational, competitive, regulatory and economic risks; (13) the success of our ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and of our joint ventures, which we cannot operate solely for our benefit and over which we may have limited control; (14) the international scale and footprint of our operations, which expose us to a variety of unique political, economic, competitive and regulatory risks, including the risk of changes in government leadership and laws (including labor, trade, tax and other laws), political uncertainty or instability and economic tensions between governments and changes in international trade policies, new barriers to entry and changes to or withdrawals from free trade agreements, changes in foreign exchange rates and interest rates, economic downturns in the countries in which we operate, differing local product preferences and product requirements, changes to and compliance with U.S. and foreign countries' export controls and economic sanctions, differing labor regulations, requirements and union relationships, differing dealer and franchise regulations and relationships, difficulties in obtaining financing in foreign countries, and public health crises, including the occurrence of a contagious disease or illness; (15) any significant disruption, including any work stoppages, at any of our manufacturing facilities; (16) the ability of our suppliers to deliver parts, systems and components without disruption and at such times to allow us to meet production schedules; (17) pandemics, epidemics, disease outbreaks and other public health crises; (18) the possibility that competitors may independently develop products and services similar to ours, or that our intellectual property 46 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES rights are not sufficient to prevent competitors from developing or selling those products or services; (19) our ability to manage risks related to security breaches, cyberattacks and other disruptions to our information technology systems and networked products, including connected vehicles; (20) our ability to manage security breaches and other disruptions to our in-vehicle systems; (21) our ability to comply with increasingly complex, restrictive and punitive regulations relating to our enterprise data practices, including the collection, use, sharing and security of the personal information of our customers, employees or suppliers; (22) our ability to comply with extensive laws, regulations and policies applicable to our operations and products, including those relating to fuel economy, emissions and AVs; (23) costs and risks associated with litigation and government investigations; (24) the costs and effect on our reputation of product safety recalls and alleged defects in products and services; (25) any additional tax expense or exposure or failure to fully realize available tax incentives; (26) our continued ability to develop captive financing capability through GM Financial; and (27) any significant increase in our pension funding requirements.
GM Financial's penetration of our retail sales in the U.S. was 42% in the year ended December 31, 2023 and 43% in the corresponding period in 2022. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.
GM Financial's penetration of our retail sales in the U.S. was 39% in the year ended December 31, 2024 and 42% in the corresponding period in 2023. Penetration levels vary depending on incentive financing programs available and competing third-party financing products in the market.
Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are 34 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES focused on the three objectives of our capital allocation program: (1) grow our business at an average target ROIC-adjusted rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18.0 billion; and (3) after the first two objectives are met, return available cash to shareholders.
Our material future uses of cash, which may vary from time to time based on market conditions and other factors, are focused on the three objectives of our capital allocation program: (1) grow our business at an average target return on invested capital-adjusted (ROIC-adjusted) rate of 20% or greater; (2) maintain a strong investment-grade balance sheet, including a target average automotive cash balance of $18.0 billion; and (3) after the first two objectives are met, return available cash to shareholders.
At December 31, 2023, the weightings applied to the economic forecast scenarios considered resulted in an allowance for loan losses on the retail finance receivables portfolio of $2.3 billion. If the forecast economic conditions were based entirely on the weakest scenario considered, the allowance for loan losses would increase by $0.1 billion.
At December 31, 2024, the weightings applied to the economic forecast scenarios considered resulted in an allowance for loan losses on the U.S. retail finance receivables portfolio of $2.1 billion. If the forecast economic conditions were based entirely on the weakest scenario considered, the allowance for loan losses would increase by $0.2 billion.
Our total vehicle sales in the U.S., our largest market in North America, were 2.6 million units for a market share of 16.2% in the year ended December 31, 2023, representing an increase of 0.3 percentage points compared to the corresponding period in 2022.
Our total vehicle sales in the U.S., our largest market in North America, were 2.7 million units for a market share of 16.5% in the year ended December 31, 2024, representing an increase of 0.3 percentage points compared to the corresponding period in 2023.
The following table summarizes the changes in Cruise's available liquidity (dollars in billions): Year Ended December 31, 2023 Operating cash flow(a) $ (1.9) GM investment in Cruise 0.5 Other non-operating (0.1) Total change in Cruise available liquidity $ (1.6) __________ (a) Includes $0.2 billion cash outflows related to tendered Cruise Class B Common Shares classified as liabilities.
The following table summarizes the changes in Cruise's available liquidity (dollars in billions): Year Ended December 31, 2024 Operating cash flow(a) $ (2.2) GM investment in Cruise 1.3 Other non-operating (0.1) Total change in Cruise available liquidity $ (1.0) __________ (a) Includes $0.1 billion cash outflows related to tendered Cruise Class B Common Shares classified as liabilities.
For the year ended December 31, 2023 our ETR-adjusted was 15.7%. We expect our adjusted effective tax rate to be between 18% and 20% for the year ending December 31, 2024. Refer to Note 17 to our consolidated financial statements for additional information related to Income tax expense.
For the year ended December 31, 2024, our effective tax rate-adjusted (ETR-adjusted) was 20.1%. We expect our adjusted effective tax rate to be between 18% and 20% for the year ending December 31, 2025. Refer to Note 17 to our consolidated financial statements for additional information related to Income tax expense.
(b) Includes $4.8 billion, $6.7 billion and $0.6 billion in the years ended December 31, 2023, 2022 and 2021 which are eliminated within the consolidated statements of cash flows.
(b) Includes $8.2 billion, $4.8 billion and $6.7 billion in the years ended December 31, 2024, 2023 and 2022 which are eliminated within the consolidated statements of cash flows.
Our Automotive borrowing capacity under credit facilities totaled $17.1 billion at December 31, 2023, which consisted primarily of three credit facilities, and $15.5 billion at December 31, 2022, which consisted primarily of two credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial.
Our Automotive borrowing capacity under credit facilities totaled $14.3 billion at December 31, 2024, which consisted primarily of two credit facilities, and $17.1 billion at December 31, 2023, which consisted primarily of three credit facilities. Total Automotive borrowing capacity under our credit facilities does not include our 364-day, $2.0 billion facility allocated for exclusive use of GM Financial.
GM Financial's prime loan originations as a percentage of total loan originations in North America was 82% in the year ended December 31, 2023 and 80% in the corresponding period in 2022.
GM Financial's prime loan originations as a percentage of total loan originations in North America was 81% in the year ended December 31, 2024 and 82% in the corresponding period in 2023.
GM Financial Cash Flow (Dollars in billions) Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Net cash provided by (used in) operating activities $ 6.7 $ 5.5 $ 7.3 $ 1.2 Net cash provided by (used in) investing activities(a) $ (10.9) $ (10.0) $ (5.5) $ (0.9) Net cash provided by (used in) financing activities(b) $ 5.7 $ 4.0 $ (2.6) $ 1.7 __________ (a) Includes $(3.0) billion, $(5.0) billion and $2.9 billion in the years ended December 31, 2023, 2022 and 2021 for purchases of, and collections on, wholesale finance receivables and intercompany loans to GM which are eliminated within the consolidated statements of cash flows.
GM Financial Cash Flow (Dollars in billions) Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Net cash provided by (used in) operating activities $ 6.4 $ 6.7 $ 5.5 $ (0.3) Net cash provided by (used in) investing activities(a) $ (15.4) $ (10.9) $ (10.0) $ (4.5) Net cash provided by (used in) financing activities(b) $ 8.9 $ 5.7 $ 4.0 $ 3.2 __________ (a) Includes $6.4 billion, $3.0 billion and $5.0 billion in the years ended December 31, 2024, 2023 and 2022 for purchases of, and collections on, wholesale finance receivables from GM which are eliminated within the consolidated statements of cash flows.
(b) Includes $(1.8) billion, $(1.7) billion and $(3.5) billion in the years ended December 31, 2023, 2022 and 2021 for dividends to GM which are eliminated within the consolidated statements of cash flows.
(b) Includes $1.8 billion in the years ended December 31, 2024 and 2023 and $1.7 billion in the year ended December 31, 2022 for dividends to GM which are eliminated within the consolidated statements of cash flows.
In November 2023, our Board of Directors increased the capacity under our previously announced common stock repurchase program by $10.0 billion to $11.4 billion and approved a $10.0 billion ASR program.
In November 2023, our Board of Directors increased the capacity under our previously announced share repurchase program by $10.0 billion to an aggregate of $11.4 billion and approved a $10.0 billion ASR program.
Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. For the year ended December 31, 2023, net automotive cash provided by operating activities under U.S. GAAP was $20.8 billion, capital expenditures were $10.7 billion and adjustments for management actions were $1.5 billion.
Adjusted Automotive Free Cash Flow We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. For the year ended December 31, 2024, net automotive cash provided by operating activities under U.S. GAAP was $23.9 billion, capital expenditures were $10.7 billion and adjustments for management actions were $0.8 billion.
Realization of the residual values is dependent on GM Financial's future ability to market the vehicles under prevailing market conditions. At December 31, 2023, the estimated residual value of GM Financial's leased vehicles was $22.7 billion.
Realization of the residual values is dependent on GM Financial's future ability to market the vehicles under prevailing market conditions. At December 31, 2024, the estimated residual value of GM Financial's leased vehicles was $23.5 billion.
Our total vehicle sales in China were 2.1 million units resulting in a market share of 8.4% in the year ended December 31, 2023, representing a decrease of 1.4 percentage points compared to the corresponding period in 2022.
Our total vehicle sales in China were 1.8 million units resulting in a market share of 6.9% in the year ended December 31, 2024, representing a decrease of 1.5 percentage points compared to the corresponding period in 2023.
In the year ended December 31, 2023, GM Financial's revenue consisted of leased vehicle income of 51%, retail finance charge income of 37% and commercial finance charge income of 7%. GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices.
In the year ended December 31, 2024, GM Financial's revenue consisted of leased vehicle income of 46%, retail finance charge income of 40% and commercial finance charge income of 8%. GM Financial's leasing program is exposed to residual values, which are heavily dependent on used vehicle prices.
For EBIT-adjusted and our other non- 44 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.
For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item.
At December 31, 2023, secured, committed unsecured and uncommitted unsecured credit facilities totaled $27.0 billion, $0.8 billion and $2.0 billion with advances outstanding of $5.0 billion, an insignificant amount and $2.0 billion.
At December 31, 2024, secured, committed unsecured and uncommitted unsecured credit facilities totaled $27.1 billion, $0.7 billion and $2.1 billion with advances outstanding of $5.4 billion, an insignificant amount and $2.1 billion.
Our known current material uses of cash include, among other possible demands: (1) capital spending and our investments in our battery cell manufacturing joint ventures of approximately $10.5 billion to $11.5 billion in 2024; (2) payments for engineering and product development activities , including investing in the development and commercialization of AV technology by Cruise; (3) payments associated with previously announced vehicle recalls and any other recall-related contingencies; (4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (5) dividend payments on our common stock that are declared by our Board of Directors; and (6) payments to purchase shares of our common stock authorized by our Board of Directors.
Our known current material uses of cash include, among other possible demands: (1) capital spending and our investments in our battery cell manufacturing joint ventures of approximately $10.0 billion to $11.0 billion in 2025; (2) payments for engineering and product development activities , including the development of AV technology and software-enabled services; (3) payments associated with previously announced vehicle recalls and any other recall-related contingencies; (4) payments to service debt and other long-term obligations, including discretionary and mandatory contributions to our pension plans; (5) dividend payments on our common stock that are declared by our Board of Directors; (6) payments to purchase shares of our 33 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES common stock authorized by our Board of Directors; and (7) payments of emissions-related regulatory compliance costs.
We did not have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.7 billion and $0.4 billion at December 31, 2023 and 2022. If available capacity permits, GM Financial continues to have access to our five-year, $10.0 billion and three-year, $4.1 billion credit facilities.
We did not have any borrowings against our primary facilities, but had letters of credit outstanding under our sub-facility of $0.5 billion and $0.7 billion at December 31, 2024 and 2023. If available capacity permits, GM Financial continues to have access to our automotive credit facilities.
Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Financing Activities Net proceeds (payments) from short-term debt $ (1.5) $ (1.4) $ (0.5) $ (0.1) Issuance of senior notes — 2.3 — (2.3) Other(a) (12.1) (3.3) (0.4) (8.8) Net automotive cash provided by (used in) financing activities $ (13.6) $ (2.5) $ (0.9) $ (11.1) __________ (a) Includes $10.0 billion in advances against accelerated share repurchases in the year ended December 31, 2023, $1.1 billion and $2.5 billion for payments to purchase common stock in the years ended December 31, 2023 and 2022, $0.5 billion and $0.3 billion for dividends paid in the years ended December 31, 2023 and 2022 and $0.5 billion for repayments of senior unsecured notes for the year ended December 31, 2021.
Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Financing Activities Net proceeds (payments) from short-term debt $ (0.7) $ (1.5) $ (1.4) $ 0.8 Issuance of senior notes — — 2.3 — Other(a) (7.8) (12.1) (3.3) 4.3 Net automotive cash provided by (used in) financing activities $ (8.5) $ (13.6) $ (2.5) $ 5.1 __________ (a) Includes $7.1 billion, $1.1 billion and $2.5 billion for payments to purchase common stock in the years ended December 31, 2024, 2023 and 2022; $0.5 billion for dividends paid in the years ended December 31, 2024 and 2023; $0.3 billion for dividends paid in the year ended December 31, 2022; and $10.0 billion in connection with the ASR in the year ended December 31, 2023.
For the year ended December 31, 2022, net automotive cash provided by operating activities under U.S. GAAP was $19.1 billion, capital expenditures were $9.0 billion and adjustments for management actions were $0.4 billion. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.
For the year ended December 31, 2023, net automotive cash provided by operating activities under U.S. GAAP was $20.8 billion, capital expenditures were $10.7 billion and adjustments for management actions were $1.5 billion. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.
GMI Industry sales in China were 25.0 million units in the year ended December 31, 2023, representing an increase of 6.3% compared to the corresponding period in 2022.
GMI Industry sales in China were 26.6 million units in the year ended December 31, 2024, representing an increase of 6.4% compared to the corresponding period in 2023.
Amounts eliminated primarily relate to purchases of, and collections on, wholesale finance receivables provided by GM Financial to our dealers and dividends issued by GM Financial to us. 37 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Investing Activities Capital expenditures $ (10.7) $ (9.0) $ (7.4) $ (1.7) Acquisitions and liquidations of marketable securities, net 3.5 (3.9) 1.0 7.4 Other(a) (1.5) (4.5) (1.8) 3.0 Net automotive cash provided by (used in) investing activities(b) $ (8.7) $ (17.5) $ (8.2) $ 8.8 __________ (a) Includes $0.7 billion, $0.8 billion and $0.5 billion of GM's investment in Ultium Cells Holdings LLC in the years ended December 31, 2023, 2022 and 2021, $0.5 billion, $2.4 billion and $1.0 billion of GM's investment in Cruise in the years ended December 31, 2023, 2022 and 2021, $0.3 billion of GM's investment in Lithium Americas in the year ended December 31, 2023, $2.1 billion for the purchase of Cruise preferred shares from SoftBank Vision Fund (AIV M2) L.P.
Amounts eliminated primarily relate to purchases of, and collections on, wholesale finance receivables provided by GM Financial to our dealers and dividends issued by GM Financial to us. 36 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Investing Activities Capital expenditures $ (10.7) $ (10.7) $ (9.0) $ — Acquisitions and liquidations of marketable securities, net 0.3 3.5 (3.9) (3.2) Other(a) (2.4) (1.5) (4.5) (0.9) Net automotive cash provided by (used in) investing activities(b) $ (12.8) $ (8.7) $ (17.5) $ (4.1) __________ (a) Includes $1.3 billion, $0.5 billion and $2.4 billion of GM's investment in Cruise in the years ended December 31, 2024, 2023 and 2022, which is inclusive of a $0.9 billion convertible note issued by Cruise to us in the year ended December 31, 2024; $0.7 billion of GM's investment in Ultium Cells Holdings LLC in the years ended December 31, 2024 and 2023 and $0.8 billion of GM's investment in Ultium Cells Holdings LLC in the year ended December 31, 2022; $0.3 billion of GM's investment in Lithium Americas in the years ended December 31, 2024 and 2023; $0.1 billion and $2.1 billion for the purchase of Cruise common and preferred shares from noncontrolling shareholders in the years ended December 31, 2024 and 2022; and $0.9 billion related to the sale of Stellantis N.V.
Credit Facilities In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities, which may be secured or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy.
Refer to the "Automotive Liquidity" section of this MD&A for additional details. Credit Facilities In the normal course of business, in addition to using its available cash, GM Financial utilizes borrowings under its credit facilities, which may be secured or unsecured, and GM Financial repays these borrowings as appropriate under its cash management strategy.
EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations.
For these reasons, we believe these non-GAAP measures are useful for our investors. 42 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense and income taxes as well as certain additional adjustments that are not considered part of our core operations.
GAAP to ETR-adjusted: Years Ended December 31, 2023 2022 2021 Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Effective tax rate $ 10,403 $ 563 5.4 % $ 11,597 $ 1,888 16.3 % $ 12,716 $ 2,771 21.8 % Adjustments(a) 1,916 504 2,221 423 726 105 Tax adjustments(b) 870 482 51 ETR-adjusted $ 12,319 $ 1,937 15.7 % $ 13,818 $ 2,793 20.2 % $ 13,442 $ 2,927 21.8 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GAAP to ETR-adjusted: Years Ended December 31, 2024 2023 2022 Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Income before income taxes Income tax expense Effective tax rate Effective tax rate $ 8,519 $ 2,556 30.0 % $ 10,403 $ 563 5.4 % $ 11,597 $ 1,888 16.3 % Adjustments(a) 6,564 477 1,916 504 2,221 423 Tax adjustments(b) — 870 482 ETR-adjusted $ 15,083 $ 3,033 20.1 % $ 12,319 $ 1,937 15.7 % $ 13,818 $ 2,793 20.2 % __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GAAP, which requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in the periods presented.
Critical Accounting Estimates The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses in the periods presented.
Gains on terminations of leased vehicles of $0.9 billion and $1.2 billion were included in GM Financial interest, operating and other expenses in the years ended December 31, 2023 and 2022. The decrease in gains is primarily due to higher leased portfolio net book values at termination and fewer terminated leases in 2023 compared to 2022.
Gains on terminations of leased vehicles of $0.8 billion and $0.9 billion were included in GM Financial interest, operating and other expenses in the years ended December 31, 2024 and 2023. The decrease in gains is primarily due to fewer terminated leases in 2024 compared to 2023.
The unamortized pre-tax actuarial loss on our pension plans was $5.9 billion and $3.3 billion at December 31, 2023 and 2022. The year-over-year change is primarily due to a decrease in discount rates and lower than expected asset returns.
The unamortized pre-tax actuarial loss on our pension plans was $6.2 billion and $5.9 billion at December 31, 2024 and 2023. The year-over-year change is primarily due to lower than expected asset returns partially offset by an increase in discount rates.
A change in any of these factors affecting the estimate could have a significant effect on recorded sales incentives. A 10% increase in the cost of incentives would increase the sales 41 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES incentive liability by approximately $0.2 billion.
A change in any of these factors affecting the estimate could have a significant effect on recorded sales incentives. A 10% increase in the cost of incentives would increase the sales incentive liability by approximately $0.4 billion.
We plan to execute our strategy with a steadfast commitment to good corporate citizenship through more sustainable operations and a leading health and safety culture.
We plan to execute our strategy 26 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES with a steadfast commitment to good corporate citizenship through more sustainable operations and a leading health and safety culture.
GM North America Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 141,445 $ 128,378 $ 13,067 10.2 % $ 8.5 $ 0.7 $ 3.2 $ 0.7 EBIT-adjusted $ 12,306 $ 12,988 $ (682) (5.3) % $ 2.3 $ (0.9) $ 3.2 $ (5.1) $ (0.2) EBIT-adjusted margin 8.7 % 10.1 % (1.4) % (Vehicles in thousands) Wholesale vehicle sales 3,147 2,926 221 7.6 % GMNA Total Net Sales and Revenue In the year ended December 31, 2023, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes primarily due to increased sales of crossover vehicles and full-size pickup trucks, partially offset by decreased sales of mid-size pickup trucks; (2) favorable Price as a result of low dealer inventory levels and strong demand for our products; (3) favorable Mix associated with increased sales of full-size pickup trucks and full-size SUVs and decreased sales of vans, passenger cars and mid-size pickup trucks, partially offset by increased sales of crossover vehicles; and (4) favorable Other due to increased sales of parts and accessories.
GM North America Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2024 2023 % Volume Mix Price Cost Other (Dollars in billions) Total net sales and revenue $ 157,509 $ 141,445 $ 16,064 11.4 % $ 12.8 $ 2.5 $ 0.7 $ — EBIT-adjusted $ 14,528 $ 12,306 $ 2,222 18.1 % $ 3.9 $ (3.1) $ 0.7 $ 1.3 $ (0.6) EBIT-adjusted margin 9.2 % 8.7 % 0.5 % (Vehicles in thousands) Wholesale vehicle sales 3,464 3,147 317 10.1 % GMNA Total Net Sales and Revenue In the year ended December 31, 2024, Total net sales and revenue increased primarily due to: (1) increased net wholesale volumes primarily due to increased sales of full-size pickup trucks, mid-size pickup trucks and other vehicles; (2) favorable Mix associated with increased sales of full-size pickup trucks and full-size SUVs, partially offset by increased sales of crossover vehicles; and (3) favorable Price as a result of stable dealer inventory levels and strong demand for our products.
We apply the individual annual yield curve rates instead of the assumed discount rate to determine the service cost and interest cost, which more specifically links the cash flows related to service cost and interest cost to bonds maturing in their year of payment.
We apply the individual annual yield curve rates instead of the assumed discount rate to determine the service cost and interest cost, which more specifically links the cash flows related to service cost and interest cost to bonds maturing in their year of payment. Significant differences in actual experience or significant changes in assumptions may materially affect the pension obligations.
(f) This adjustment was excluded because it relates to the one-time modification of Cruise stock incentive awards. (g) This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings.
(k) This adjustment was excluded because it relates to the shutdown of our Russia business including the write off of our net investment and release of accumulated translation losses into earnings.
Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans.
Refer to Note 5 to our consolidated financial statements for additional information. Several of our loan facilities, including our credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders.
We did not have intercompany loans to GM Financial at December 31, 2024 and 2023. Refer to Note 5 to our consolidated financial statements for additional information. Several of our loan facilities, including our credit facilities, require compliance with certain financial and operational covenants as well as regular reporting to lenders.
GAAP to EPS-diluted-adjusted: Years Ended December 31, 2023 2022 2021 Amount Per Share Amount Per Share Amount Per Share Diluted earnings per common share $ 10,022 $ 7.32 $ 8,915 $ 6.13 $ 9,837 $ 6.70 Adjustments(a) 1,865 1.36 2,125 1.46 701 0.47 Tax effect on adjustments(b) (504) (0.37) (423) (0.29) (105) (0.07) Tax adjustments(c) (870) (0.64) (482) (0.33) (51) (0.03) Deemed dividend adjustment(d) — — 909 0.63 — — EPS-diluted-adjusted $ 10,513 $ 7.68 $ 11,044 $ 7.59 $ 10,382 $ 7.07 __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GAAP to EPS-diluted-adjusted: Years Ended December 31, 2024 2023 2022 Amount Per Share Amount Per Share Amount Per Share Diluted earnings per common share $ 7,189 $ 6.37 $ 10,022 $ 7.32 $ 8,915 $ 6.13 Adjustments(a) 6,491 5.75 1,865 1.36 2,125 1.46 Tax effect on adjustments(b) (477) (0.42) (504) (0.37) (423) (0.29) Tax adjustments(c) — — (870) (0.64) (482) (0.33) Return to (return from) preferred shareholders(d) (1,239) (1.10) — — 909 0.63 EPS-diluted-adjusted $ 11,963 $ 10.60 $ 10,513 $ 7.68 $ 11,044 $ 7.59 __________ (a) Refer to the reconciliation of Net income attributable to stockholders under U.S.
GMNA Industry sales in North America were 19.6 million units in the year ended December 31, 2023, representing an increase of 13.1% compared to the corresponding period in 2022. U.S. industry sales were 16.0 million units in the year ended December 31, 2023, representing an increase of 12.2% compared to the corresponding period in 2022.
GMNA Industry sales in North America were 20.3 million units in the year ended December 31, 2024, representing an increase of 3.5% compared to the corresponding period in 2023. U.S. industry sales were 16.4 million units in the year ended December 31, 2024, representing an increase of 2.3% compared to the corresponding period in 2023.
Incentive programs are generally specific to brand, model or sales region and are for specified time periods, which may be extended.
There may be numerous types of incentives available at any particular time. Incentive programs are generally specific to brand, model or sales region and are for specified time periods, which may be extended.
(b) Includes $0.5 billion, $2.4 billion and $1.0 billion in the years ended December 31, 2023, 2022 and 2021 related to investments from GM which are eliminated within the consolidated statements of cash flows and $2.1 billion in the year ended December 31, 2022 related to the purchase of Softbank’s shares in Cruise by Automotive which is reclassified to financing activities within the consolidated statements of cash flows.
(b) Includes $1.3 billion, $0.5 billion and $2.4 billion in the years ended December 31, 2024, 2023 and 2022 related to investments from GM which are eliminated within the consolidated statements of cash flows.
While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. In December 2023, an investment policy study was completed for the U.S. pension plans. As a result, the weighted-average long-term rate of ROA remains unchanged at 6.3% at December 31, 2023 and 2022.
While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. In December 2024, an investment policy study was completed for the U.S. pension plans.
GM Financial Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Amount % Total revenue $ 14,225 $ 12,766 $ 13,419 $ 1,459 11.4 % Provision for loan losses $ 826 $ 654 $ 248 $ 172 26.3 % EBT-adjusted $ 2,985 $ 4,076 $ 5,036 $ (1,091) (26.8) % Average debt outstanding (dollars in billions) $ 100.4 $ 93.8 $ 94.1 $ 6.6 7.0 % Effective rate of interest paid 4.7 % 3.1 % 2.7 % 1.6 % GM Financial Revenue In the year ended December 31, 2023, Total revenue increased primarily due to: (1) increased finance charge income of $1.7 billion primarily due to an increase in the effective yield resulting from higher benchmark interest rates and growth in the size of the portfolio; (2) increased investment income of $0.3 billion primarily due to an increase in benchmark interest rates; partially offset by (3) decreased leased vehicle income of $0.5 billion primarily due to a decrease in the average balance of the leased vehicles portfolio.
GM Financial Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Amount % Total revenue $ 15,875 $ 14,225 $ 12,766 $ 1,650 11.6 % Provision for loan losses $ 1,029 $ 826 $ 654 $ 203 24.6 % EBT-adjusted $ 2,965 $ 2,985 $ 4,076 $ (20) (0.7) % Average debt outstanding (dollars in billions) $ 109.0 $ 100.4 $ 93.8 $ 8.6 8.6 % Effective rate of interest paid 5.5 % 4.7 % 3.1 % 0.8 % GM Financial Revenue In the year ended December 31, 2024, total revenue increased primarily due to: (1) increased finance charge income of $1.5 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (2) increased other income of $0.2 billion primarily due to higher investment income resulting from an increase in the average investment balance and growth in vehicle protection contracts.
In the year ended December 31, 2022, the adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation.
In the year ended December 31, 2022, the adjustment consists of tax benefit related to the release of a valuation allowance against deferred tax assets considered realizable as a result of Cruise tax reconsolidation. These adjustments were excluded because significant impacts of valuation allowances are not considered part of our core operations.
Refer to the "Non-GAAP Measures" section of this MD&A for additional information. 28 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table reconciles expected Net income attributable to stockholders under U.S. generally accepted accounting principles (GAAP) to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2024 Net income attributable to stockholders $ 9.8-11.2 Income tax expense 2.1-2.7 Automotive interest expense, net 0.1 EBIT-adjusted(a) $ 12.0-14.0 __________ (a) We do not consider the potential future impact of adjustments on our expected financial results.
The following table reconciles expected Net income attributable to stockholders under U.S. generally accepted accounting principles (GAAP) to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2025 Net income attributable to stockholders $ 11.2-12.5 Income tax expense 2.5-3.2 Automotive interest income, net (0.0) EBIT-adjusted(a) $ 13.7-15.7 __________ (a) We do not consider the potential future impact of adjustments on our expected financial results.
Plans(a) Effect on 2024 Pension Expense Effect on December 31, 2023 PBO Effect on 2024 Pension Expense Effect on December 31, 2023 PBO 25 basis point decrease in discount rate -$58 +$914 -$5 +$312 25 basis point increase in discount rate +$53 -$872 +$6 -$299 25 basis point decrease in expected rate of ROA +$109 N/A +$25 N/A 25 basis point increase in expected rate of ROA -$109 N/A -$25 N/A __________ (a) The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service and interest cost.
Plans(a) Effect on 2025 Pension Expense Effect on December 31, 2024 PBO Effect on 2025 Pension Expense Effect on December 31, 2024 PBO 25 basis point decrease in discount rate -$50 +$767 -$4 +$256 25 basis point increase in discount rate +$47 -$741 +$7 -$245 25 basis point decrease in expected rate of ROA +$99 N/A +$23 N/A 25 basis point increase in expected rate of ROA -$99 N/A -$23 N/A __________ (a) The sensitivity does not include the effects of the individual annual yield curve rates applied for the calculation of the service and interest cost.
(SoftBank) in the year ended December 31, 2022 and $0.9 billion related to the sale of Stellantis common shares, excluding dividends received and tax withholding, in the year ended December 31, 2022. (b) The investments in Cruise are eliminated within the consolidated statements of cash flows.
(Stellantis) common shares, excluding dividends received and tax withholding, in the year ended December 31, 2022. (b) The investments in Cruise are eliminated within the consolidated statements of cash flows. The redemption of Cruise common and preferred shares from noncontrolling shareholders in 2024 and 2022 are reclassified to financing activities within the consolidated statements of cash flows.
At December 31, 2023, available liquidity exceeded GM Financial's liquidity targets. GM Financial did not have any borrowings outstanding against our credit facility designated for their exclusive use or the remainder of our revolving credit facilities at December 31, 2023 and 2022. Refer to the "Automotive Liquidity" section of this MD&A for additional details.
At December 31, 2024, available liquidity exceeded GM Financial's liquidity targets. 38 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES GM Financial did not have any borrowings outstanding against our credit facility designated for their exclusive use or the remainder of our revolving credit facilities at December 31, 2024 and 2023.
GMI Total Net Sales and Revenue In the year ended December 31, 2023, Total net sales and revenue increased primarily due to: (1) favorable pricing across multiple vehicle lines in Argentina, Brazil and the Middle East; and (2) favorable Mix primarily in Asia/Pacific and the Middle East; partially offset by (3) decreased net wholesale volumes in Egypt, Colombia and Chile primarily due to industry downturn, partially offset by increased volumes in Brazil due to a new vehicle launch; and (4) unfavorable Other primarily due to the foreign currency effect resulting from the weakening of the Argentine peso against the U.S. dollar, partially offset by increased components, parts and accessories sales.
GMI Total Net Sales and Revenue In the year ended December 31, 2024, Total net sales and revenue decreased primarily due to: (1) decreased net wholesale volumes in South America, in Asia/Pacific and in the Middle East primarily due to decreased sales of passenger cars and crossover vehicles, partially offset by higher sales of trucks; and (2) unfavorable Other primarily due to the foreign currency effect resulting from the weakening of the Brazilian real and Egyptian pound against the U.S. dollar and decreased components sales; partially offset by (3) favorable Mix primarily in Brazil and in the Middle East; and (4) favorable pricing across multiple vehicle lines in the Middle East and in Brazil.
Alternatively, if used vehicle prices outperform GM Financial's latest estimates, it may record gains on sales of off-lease vehicles and/or decreased depreciation expense. 42 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table illustrates the effect of a 1% relative change in the estimated residual values at December 31, 2023, which could increase or decrease depreciation expense over the remaining term of the leased vehicle portfolio, holding all other assumptions constant (dollars in millions): Impact to Depreciation Expense 2024 $ 158 2025 53 2026 15 2027 and thereafter 1 Total $ 227 Changes to residual values are rarely simultaneous across all maturities and segments, and also may impact return rates.
The following table illustrates the effect of a 1% relative change in the estimated residual values at December 31, 2024, which could increase or decrease depreciation expense over the remaining term of the leased vehicle portfolio, holding all other assumptions constant (dollars in millions): Impact to Depreciation Expense 2025 $ 158 2026 60 2027 16 2028 and thereafter 1 Total $ 235 Changes to residual values are rarely simultaneous across all maturities and segments, and also may impact return rates.
Our total vehicle sales outside of China were 1.0 million units for a market share of 4.0% in the year ended December 31, 2023, which is comparable to the corresponding period in 2022. Cruise Cruise Holdings, our majority-owned subsidiary, is pursuing the development and commercialization of AV technology.
Our total vehicle sales outside of China were 0.9 million units for a market share of 3.7% in the year ended December 31, 2024, representing a decrease of 0.3 percentage points compared to the corresponding period in 2023. Cruise Cruise Holdings, our majority-owned subsidiary, has been pursuing the development and commercialization of AV technology for deployment in a robotaxi application.
Changes in our current estimates, due to unanticipated market conditions, governmental legislative actions or events, could have a material effect on our ability to utilize deferred tax assets. At December 31, 2023, valuation allowances against deferred tax assets were $7.0 billion.
Changes in our current estimates, due to unanticipated market conditions, governmental legislative actions or events, could have a material effect on our ability to utilize deferred tax assets. At December 31, 2024, valuation allowances against deferred tax assets were $6.5 billion. Refer to Note 17 to our consolidated financial statements for additional information on the composition of these valuation allowances.
Significant differences in actual experience or significant changes in assumptions may materially affect the pension obligations. The effects of actual results differing from assumptions and the changing of assumptions are included in unamortized net actuarial gains and losses that are subject to amortization to pension expense over future periods.
The effects of actual results differing from assumptions and the changing of assumptions are included in 41 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES unamortized net actuarial gains and losses that are subject to amortization to pension expense over future periods.
The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands): Years Ended December 31, 2023 2022 2021 Wholesale vehicle sales including vehicles exported to markets outside of China 2,334 2,639 3,007 Total net sales and revenue $ 31,435 $ 35,857 $ 42,776 Net income $ 1,122 $ 1,407 $ 2,109 December 31, 2023 December 31, 2022 Cash and cash equivalents $ 6,875 $ 8,552 Debt $ 202 $ 197 33 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Cruise Years Ended December 31, 2023 vs. 2022 Change 2023 2022 2021 Favorable/ (Unfavorable) % Total net sales and revenue(a) $ 102 $ 102 $ 106 $ — — % EBIT (loss)-adjusted $ (2,695) $ (1,890) $ (1,196) $ (805) (42.6) % __________ (a) Primarily reclassified to Interest income and other non-operating income, net in our consolidated income statements in each of the years ended December 31, 2023, 2022 and 2021.
The following table summarizes certain key operational and financial data for the Automotive China JVs (vehicles in thousands): Years Ended December 31, 2024 2023 2022 Wholesale vehicle sales including vehicles exported to markets outside of China 1,843 2,334 2,639 Total net sales and revenue $ 21,740 $ 31,435 $ 35,857 Net income (loss) $ (4,466) $ 1,122 $ 1,407 December 31, 2024 December 31, 2023 Cash and cash equivalents $ 6,389 $ 6,875 Debt $ 104 $ 202 32 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Cruise Years Ended December 31, 2024 vs. 2023 Change 2024 2023 2022 Favorable/ (Unfavorable) % Total net sales and revenue(a) $ 257 $ 102 $ 102 $ 155 n.m.
GM Financial EBT-Adjusted In the year ended December 31, 2023, EBT-adjusted decreased primarily due to: (1) increased interest expense of $1.8 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates, as well as an increase in average debt outstanding; (2) decreased leased vehicle income net of leased vehicle expenses of $0.9 billion primarily due to a decrease in the average balance of the leased vehicles portfolio and decreased lease termination gains due to higher leased portfolio net book values at termination and fewer terminated leases; (3) increased provision for loan losses of $0.2 billion due to lower recovery rates in 2023, as well as moderating credit performance; partially offset by (4) increased finance charge income of $1.7 billion primarily due to an increase in the effective yield resulting from higher benchmark interest rates and growth in the size of the portfolio; and (5) increased investment income of $0.3 billion primarily due to an increase in benchmark interest rates.
GM Financial EBT-Adjusted In the year ended December 31, 2024, earnings before income taxes-adjusted (EBT-adjusted) decreased primarily due to: (1) increased interest expense of $1.3 billion primarily due to an increased effective rate of interest on debt, resulting from higher benchmark interest rates on new issuances relative to maturing debt, as well as an increase in average debt outstanding; (2) increased provision for loan losses of $0.2 billion primarily due to increased loan origination volume and moderating credit performance and recovery rates; and (3) decreased equity income of $0.1 billion primarily due to lower earning asset levels at its joint ventures in China; partially offset by (4) increased finance charge income of $1.5 billion primarily due to an increase in the effective yield resulting from higher average interest rates on new loans and growth in the size of the portfolio; and (5) increased other income of $0.2 billion primarily due to higher investment income resulting from an increase in the average investment balance and growth in vehicle protection contracts.
We will continue to evaluate the IRA impacts on our financial results as additional regulatory guidance is issued. We face continuing market, operating and regulatory challenges in several countries across the globe due to, among other factors, competitive pressures, our product portfolio offerings, heightened emission standards, labor disruptions, foreign exchange volatility, evolving trade policy and political uncertainty.
We face continuing market, operating and regulatory challenges in several countries across the globe due to, among other factors, competitive pressures, our product portfolio offerings, heightened emission standards, labor disruptions, foreign exchange volatility, evolving trade policy and political uncertainty. Refer to Part I, Item 1A. Risk Factors for a discussion of these challenges.
Total Net Sales and Revenue Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Price Other (Dollars in billions) GMNA $ 141,445 $ 128,378 $ 13,067 10.2 % $ 8.5 $ 0.7 $ 3.2 $ 0.7 GMI 15,949 15,420 529 3.4 % $ (0.6) $ 0.4 $ 1.2 $ (0.4) Corporate 273 177 96 54.2 % $ — $ 0.1 Automotive 157,667 143,974 13,693 9.5 % $ 7.8 $ 1.1 $ 4.3 $ 0.4 Cruise 102 102 — — % $ — $ — GM Financial 14,225 12,766 1,459 11.4 % $ 1.5 Eliminations/reclassifications (151) (107) (44) (41.1) % $ — $ (0.1) Total net sales and revenue $ 171,842 $ 156,735 $ 15,108 9.6 % $ 7.8 $ 1.2 $ 4.3 $ 1.8 Refer to the regional sections of this MD&A for additional information on Volume, Mix, Price and Other. 30 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive and Other Cost of Sales Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2023 2022 % Volume Mix Cost Other (Dollars in billions) GMNA $ 123,577 $ 109,651 $ (13,926) (12.7) % $ (6.1) $ (1.6) $ (6.2) $ — GMI 14,164 14,166 2 — % $ 0.5 $ (0.3) $ (0.3) $ 0.1 Corporate 513 500 (13) (2.6) % $ — $ (0.1) $ 0.1 Cruise 3,088 2,576 (512) (19.9) % $ — $ (0.5) Eliminations (12) (2) 10 n.m. $ — $ — Total automotive and other cost of sales $ 141,330 $ 126,892 $ (14,438) (11.4) % $ (5.6) $ (2.0) $ (7.0) $ 0.2 __________ n.m. = not meaningful The most significant element of our Automotive and other cost of sales is material cost, which makes up approximately two-thirds of the total amount.
Total Net Sales and Revenue Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2024 2023 % Volume Mix Price Other (Dollars in billions) GMNA $ 157,509 $ 141,445 $ 16,064 11.4 % $ 12.8 $ 2.5 $ 0.7 $ — GMI 13,890 15,949 (2,059) (12.9) % $ (1.6) $ 0.4 $ 0.2 $ (1.1) Corporate 206 273 (67) (24.5) % $ — $ (0.1) Automotive 171,605 157,667 13,938 8.8 % $ 11.2 $ 2.9 $ 0.9 $ (1.1) Cruise 257 102 155 n.m. $ — $ 0.2 GM Financial 15,875 14,225 1,650 11.6 % $ 1.7 Eliminations/reclassifications (296) (151) (145) (96.0) % $ — $ (0.1) Total net sales and revenue $ 187,442 $ 171,842 $ 15,598 9.1 % $ 11.2 $ 2.9 $ 0.9 $ 0.6 __________ n.m. = not meaningful Refer to the regional sections of this MD&A for additional information on Volume, Mix, Price and Other. 29 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive and Other Cost of Sales Years Ended December 31, Favorable/ (Unfavorable) Variance Due To 2024 2023 % Volume Mix Cost Other (Dollars in billions) GMNA $ 135,818 $ 123,577 $ (12,241) (9.9) % $ (8.9) $ (5.5) $ 2.2 $ 0.1 GMI 12,552 14,164 1,612 11.4 % $ 1.2 $ (0.3) $ (0.2) $ 0.8 Corporate 132 513 381 74.3 % $ — $ 0.4 $ — Cruise 2,566 3,088 522 16.9 % $ — $ 0.5 Eliminations (3) (12) (9) (75.0) % $ — $ — Total automotive and other cost of sales $ 151,065 $ 141,330 $ (9,735) (6.9) % $ (7.7) $ (5.8) $ 2.9 $ 0.9 The most significant element of our Automotive and other cost of sales is material cost, which makes up approximately two-thirds of the total amount.
These expected financial results do not include the potential impact of future adjustments related to special items.
These expected financial results do not include the potential impact of future adjustments related to special items. Refer to the "Non-GAAP Measures" section of this MD&A for additional information.
The results of our joint ventures are recorded in Equity income, which is included in EBIT-adjusted above.
The vehicle sales of our Automotive China JVs are not recorded in Total net sales and revenue. The results of our joint ventures are recorded in Equity income (loss), which is included in EBIT-adjusted above.
Income Tax Expense Years Ended December 31, Year Ended 2023 vs. 2022 Change 2023 2022 2021 Favorable/ (Unfavorable) % Income tax expense $ 563 $ 1,888 $ 2,771 $ 1,325 70.2 % In the year ended December 31, 2023, Income tax expense decreased primarily due to jurisdictional mix of earnings, valuation allowance adjustments and lower pre-tax income.
Income Tax Expense Years Ended December 31, Year Ended 2024 vs. 2023 Change 2024 2023 2022 Favorable/ (Unfavorable) % Income tax expense $ 2,556 $ 563 $ 1,888 $ (1,993) n.m. __________ n.m. = not meaningful In the year ended December 31, 2024, Income tax expense increased primarily d ue to jurisdictional mix of earnings and valuation allowance adjustments that occurred in the year ended December 31, 2023 .
In the year ended December 31, 2023, Net cash provided by operating activities increased primarily due to: (1) an increase in finance charge income of $1.7 billion; (2) a net increase in cash provided by counterparty derivative collateral posting activities of $1.3 billion; (3) and a decrease in taxes paid to GM of $0.6 billion; partially offset by (4) an increase in interest paid of $2.0 billion and (5) a decrease in leased vehicle income of $0.5 billion.
In the year ended December 31, 2024, net cash provided by operating activities decreased primarily due to an increase in interest paid, a net decrease in cash provided by counterparty derivative collateral posting activities and an increase in acquisition costs related to vehicle protection contracts, partially offset by an increase in finance charge income.
GMI EBIT-Adjusted In the year ended December 31, 2023, EBIT-adjusted increased primarily due to: (1) favorable Price; and (2) favorable Mix; partially offset by (3) unfavorable Cost primarily due to increased material, logistic and warranty-related costs and other costs to support a new vehicle launch in South America, partially offset by favorable impact due to an asset sale in Korea; (4) decreased net wholesale volumes; and (5) unfavorable Other primarily due to foreign currency effect resulting from the weakening of Argentine peso against the U.S. dollar and decreased equity income.
GMI EBIT-Adjusted In the year ended December 31, 2024, EBIT-adjusted decreased primarily due to: (1) unfavorable Other primarily due to decreased Automotive China JVs equity income (loss); (2) decreased net wholesale volumes; and (3) unfavorable Cost primarily due to increased material costs and unfavorable impact due to nonrecurring asset sale in Korea, partially offset by favorable fixed cost; partially offset by (4) favorable Price; and (5) favorable Mix in South America.
We expect the orderly pause of operations, associated restructuring actions, and Cruise’s refocused operational strategy will significantly reduce Cruise’s liquidity needs in 2024. 39 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Automotive Financing – GM Financial Liquidity GM Financial's primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, net distributions from credit facilities, securitizations, secured and unsecured borrowings and collections and recoveries on finance receivables.
Automotive Financing – GM Financial Liquidity GM Financial's primary sources of cash are finance charge income, leasing income and proceeds from the sale of terminated leased vehicles, net distributions from credit facilities, securitizations, secured and unsecured borrowings and collections and recoveries on finance receivables.
Dollars and include investments in U.S. government and agency obligations, foreign government securities, time deposits, corporate debt securities and mortgage and asset-backed securities. Our investment guidelines, which we may change from time to time, prescribe certain minimum credit worthiness thresholds and limit our exposures to any particular sector, asset class, issuance or security type.
Our investment guidelines, which we may change from time to time, prescribe certain minimum credit worthiness thresholds and limit our exposures to any particular sector, asset class, issuance or security type. The majority of our current investments in debt securities are with A/A2 or better rated issuers.
The expected long-term rate of return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans. Another key assumption in determining net pension and other postretirement benefits (OPEB) expense is the assumed discount rate used to discount plan obligations.
Another key assumption in determining net pension and other postretirement benefits (OPEB) expense is the assumed discount rate used to discount plan obligations.
GAAP to EBIT-adjusted: Years Ended December 31, 2023 2022 2021 Net income attributable to stockholders $ 10,127 $ 9,934 $ 10,019 Income tax expense 563 1,888 2,771 Automotive interest expense 911 987 950 Automotive interest income (1,109) (460) (146) Adjustments Voluntary separation program(a) 1,035 — — Buick dealer strategy(b) 569 511 — Cruise restructuring(c) 478 — — GM Korea wage litigation(d) (106) — 82 India asset sales(e) (111) — — Cruise compensation modifications(f) — 1,057 — Russia exit(g) — 657 — Patent royalty matters(h) — (100) 250 GM Brazil indirect tax matters(i) — — 194 Cadillac dealer strategy(j) — — 175 Total adjustments 1,865 2,125 701 EBIT-adjusted $ 12,357 $ 14,474 $ 14,295 __________ (a) These adjustments were excluded because they relate to the acceleration of attrition as part of the cost reduction program announced in January 2023, primarily in the U.S.
GAAP to EBIT-adjusted: Years Ended December 31, 2024 2023 2022 Net income attributable to stockholders $ 6,008 $ 10,127 $ 9,934 Income tax expense 2,556 563 1,888 Automotive interest expense 846 911 987 Automotive interest income (967) (1,109) (460) Adjustments China JV restructuring actions(a) 4,010 — — Cruise restructuring(b) 1,103 478 — Buick dealer strategy(c) 964 569 511 Restructuring actions(d) 200 — — GMI plant wind down(e) 150 — — Headquarters relocation(f) 64 — — Voluntary separation program(g) — 1,035 — GM Korea wage litigation(h) — (106) — India asset sales(i) — (111) — Cruise compensation modifications(j) — — 1,057 Russia exit(k) — — 657 Patent royalty matters(l) — — (100) Total adjustments 6,491 1,865 2,125 EBIT-adjusted $ 14,934 $ 12,357 $ 14,474 __________ (a) These adjustments were excluded because they relate to the other-than-temporary impairment and our portion of restructuring charges recorded in equity earnings associated with our restructuring actions of Automotive China JVs.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

33 edited+4 added−2 removed38 unchanged
Biggest changeThe potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2023 and 2022.
Biggest changeThe potential decrease in fair value from a 50 basis point increase in interest rates would have been insignificant at December 31, 2024 and 2023. Commodity Risk We have commodity price risk which could have an impact of our financial results as result of fluctuations in the prices of commodities used in vehicle production.
During a period of rising interest rates, the interest paid on liabilities would increase more than the interest earned on assets, which would initially decrease net interest income. During a period of falling interest rates, net interest income would be expected to initially increase.
During a period of rising interest rates, the interest earned on assets would increase more than the interest paid on liabilities, which would initially increase net interest income. During a period of falling interest rates, net interest income would be expected to initially decrease.
Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and significant assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used car prices, manufacturer incentive programs and fuel prices.
Management’s estimate is based, in part, on third-party data which considers inputs including recent auction values and assumptions regarding the expected future volume of leased vehicles that will be returned to the Company, used car prices, manufacturer incentive programs and fuel prices.
Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, specifically the number of historical periods used and the weighting of historical data in the reserve studies. 52 Table of Contents How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s product warranty and recall campaign processes.
Management’s estimates consider historical claims experience, including the nature, frequency, and average cost of claims of each vehicle line or each model year of the vehicle line, and the key assumptions of historical data being predictive of future activity and events, specifically the number of historical periods used and the weighting of historical data in the reserve studies. 50 Table of Contents How we addressed the matter in our audit We evaluated the design and tested the operating effectiveness of internal controls over the Company’s product warranty and recall campaign processes.
In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlations between foreign currency exposures and offsetting long-short positions in currency or other exposures, such as interest rates, which may significantly reduce the potential loss in value.
In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled and do not contemplate the effects of correlations between foreign currency exposures and offsetting long-short positions in currency or other exposures, such as interest rates and commodity prices, which may significantly reduce the potential loss in value.
For options and other instruments with nonlinear returns, models appropriate to these types of instruments are utilized to determine the effect of market shifts. There are certain shortcomings inherent in the sensitivity analyses presented, primarily due to the assumption that interest rates change in a parallel fashion and that spot exchange rates change instantaneously.
For options and other instruments with nonlinear returns, models appropriate to these types of instruments are utilized to determine the effect of market shifts. There are certain shortcomings inherent in the sensitivity analyses presented, primarily due to the assumption that interest rates change in a parallel fashion and that spot exchange rates and commodity prices change instantaneously.
Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than the functional currencies of our operations. At December 31, 2023, our most significant foreign currency exposures were between the U.S. Dollar and the Canadian Dollar, Korean Won, Chinese Yuan, Mexican Peso and Brazilian Real.
Foreign Currency Exchange Rate Risk We have foreign currency exposures related to buying, selling and financing in currencies other than the functional currencies of our operations. At December 31, 2024, our most significant foreign currency exposures were between the U.S. dollar and the Canadian dollar, Chinese yuan, Korean won, Mexican peso and Brazilian real.
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.4 billion and $0.2 billion at December 31, 2023 and 2022. These amounts are calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect of foreign currency cash, cash equivalents and other assets.
The net fair value liability of financial instruments with exposure to foreign currency risk was $0.2 billion and $0.4 billion at December 31, 2024 and 2023. These amounts are calculated utilizing a population of foreign currency exchange derivatives and foreign currency denominated debt and exclude the offsetting effect of foreign currency cash, cash equivalents and other assets.
Our audit procedures included, among others, the performance of analytical procedures to develop an independent range of the liability for retail incentives as of the balance sheet date. Our independent range was developed for comparison to the Company’s recorded liability, and is based on historical claims, forecasted spend, and the specific vehicle mix of current dealer stock.
Our audit procedures included, among others, the performance of analytical procedures to develop an independent range of the liability for sales incentives as of the balance sheet date. Our independent range was developed for comparison to the Company’s recorded liability, and is based on historical claims, forecasted spend, and the specific vehicle mix of current dealer stock.
Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk and interest rate risk. Sensitivity analysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk. The models used assume instantaneous, parallel shifts in exchange rates and interest rate yield curves.
Automotive The following analyses provide quantitative information regarding exposure to foreign currency exchange rate risk, interest rate risk and commodity risk. Sensitivity analysis is used to measure the potential loss in the fair value of financial instruments with exposure to market risk. The models used assume instantaneous, parallel shifts in exchange rates, interest rate yield curves and commodity prices.
A risk management control framework is utilized to monitor the strategies, risks and related hedge positions in accordance with the policies and procedures approved by the Financial Risk Council. Our financial risk management policy is designed to protect against risk arising from extreme adverse market movements on our key exposures.
A risk management control framework is utilized to monitor the strategies, risks and related hedge positions in accordance with the policies and procedures approved by the Financial Risk Council. Our financial risk management policy is designed to protect against risk arising from large adverse market movements on our key exposures.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.
In our opinion, General Motors Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on the COSO criteria.
In our opinion, General Motors Company and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.
Significant factors used by the Company in estimating its liability for retail incentives include type of program, forecasted sales volumes, product mix, and the rate of customer acceptance of incentive programs, all of which are estimated based on historical experience and assumptions concerning future customer behavior and market conditions.
Significant factors used by the Company in estimating its liability for sales incentives include type of program, forecasted sales volume, product mix, and the rate of customer acceptance of incentive programs, all of which are estimated based on historical experience and assumptions concerning future customer behavior and market conditions.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 30, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 28, 2025 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes and our report dated January 30, 2024 expressed an unqualified opinion thereon.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2024, and the related notes and our report dated January 28, 2025 expressed an unqualified opinion thereon.
Derivative instruments such as foreign currency forwards, swaps and options are primarily used to hedge exposures with respect to forecasted revenues, costs and commitments denominated in foreign currencies. Such contracts had remaining maturities of up to 12 months at December 31, 2023 and were insignificant.
Derivative instruments such as foreign currency forwards, swaps and options are primarily used to hedge exposures with respect to forecasted revenues, costs and commitments denominated in foreign currencies. Such contracts had remaining maturities of up to 12 months at December 31, 2024.
Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial condition. 49 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the amounts of automotive foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2023 2022 Translation (gains) losses recorded in Accumulated other comprehensive loss $ (169) $ (37) Transaction and remeasurement (gains) losses recorded in earnings $ 344 $ 173 Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, finance lease obligations and certain marketable debt securities.
Fluctuations in foreign currency exchange rates can therefore create volatility in the results of operations and may adversely affect our financial condition. 47 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES The following table summarizes the amounts of automotive foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2024 2023 Translation (gains) losses recorded in Accumulated other comprehensive loss $ 765 $ (169) Transaction and remeasurement (gains) losses recorded in earnings $ (314) $ 344 Interest Rate Risk We are subject to market risk from exposure to changes in interest rates related to certain financial instruments, primarily debt, finance lease obligations and certain marketable debt securities.
The following table summarizes GM Financial's foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2023 2022 Translation (gains) losses recorded in Accumulated other comprehensive loss $ (147) $ 156 Transaction and remeasurement (gains) losses recorded in earnings $ 5 $ (1) * * * * * * * 51 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2023 and 2022, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”).
The following table summarizes GM Financial's foreign currency translation, transaction and remeasurement (gains) losses: Years Ended December 31, 2024 2023 Translation (gains) losses recorded in Accumulated other comprehensive loss $ 403 $ (147) Transaction and remeasurement (gains) losses recorded in earnings $ (7) $ 5 * * * * * * * 49 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated income statements and consolidated statements of comprehensive income, cash flows and equity for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”).
Detroit, Michigan January 30, 2024 54 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on Internal Control Over Financial Reporting We have audited General Motors Company and subsidiaries’ internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Detroit, Michigan January 28, 2025 52 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of General Motors Company Opinion on Internal Control Over Financial Reporting We have audited General Motors Company and subsidiaries’ internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria).
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. / s / Ernst & Young LLP Detroit, Michigan January 30, 2024 55 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. / s / Ernst & Young LLP Detroit, Michigan January 28, 2025 53 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES
The following table presents GM Financial's net interest income sensitivity to interest rate movement: Years Ended December 31, 2023 2022 One hundred basis points instantaneous increase in interest rates $ (7.7) $ (4.3) One hundred basis points instantaneous decrease in interest rates(a) $ 7.7 $ 4.3 __________ (a) Net interest income sensitivity given a one hundred basis point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
The following table presents GM Financial's net interest income sensitivity to interest rate movement: Years Ended December 31, 2024 2023 One hundred basis points instantaneous increase in interest rates $ 5.6 $ (7.7) One hundred basis points instantaneous decrease in interest rates(a) $ (5.6) $ 7.7 __________ (a) Net interest income sensitivity given a one hundred basis point decrease in interest rates requires an assumption of negative interest rates in markets where existing interest rates are below one percent.
As a result, GM Financial believes its market risk exposure relating to changes in currency exchange rates at December 31, 2023 was insignificant. GM Financial had foreign currency swaps with notional amounts of $8.0 billion and $6.9 billion at December 31, 2023 and 2022.
As a result, GM Financial believes its market risk exposure relating to changes in currency exchange rates at December 31, 2024 was insignificant. GM Financial had foreign currency swaps with notional amounts of $8.4 billion and $8.0 billion at December 31, 2024 and 2023.
At December 31, 2023, interest rate swap positions were used to manage interest rate exposures in our automotive operations and were insignificant. The fair value of debt and finance leases was $16.5 billion and $16.8 billion at December 31, 2023 and 2022.
At December 31, 2024, interest rate swap positions were used to manage interest rate exposures in our automotive operations and were insignificant. The fair value of debt and finance leases was $15.2 billion and $16.5 billion at December 31, 2024 and 2023.
The net fair value of these derivative financial instruments was a liability of $0.2 billion and $0.6 billion at December 31, 2023 and 2022.
The net fair value of these derivative financial instruments was a liability of $0.4 billion and $0.2 billion at December 31, 2024 and 2023.
The estimates are also based on assumptions including 50 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives. The prepayment projections are based on historical experience.
The estimates are also based on assumptions including the amortization and prepayment of the finance receivable portfolio, originations of finance receivables and leases, refinancing of maturing debt, replacement of maturing derivatives and exercise of options embedded in debt and derivatives. The prepayment projections are based on historical experience.
Product warranty and recall campaigns Description of the matter As discussed in Note 12 to the financial statements, the liabilities for product warranty and recall campaigns amount to $9.3 billion at December 31, 2023.
Product warranty and recall campaigns Description of the matter As discussed in Note 12 to the financial statements, the liabilities for product warranty and recall campaigns amount to $10.6 billion at December 31, 2024.
Sales incentives Description of the matter Automotive sales and revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or providing services, which is net of dealer and customer sales incentives the Company expects to pay.
Sales incentives Description of the matter As discussed in Note 2 to the financial statements, Automotive net sales and revenue represents the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or providing services, which is net of estimated dealer and customer sales incentives the Company reasonably expects to pay.
The Company’s estimated residual value of leased vehicles at the end of lease term was $22.7 billion as of December 31, 2023. 53 Table of Contents Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment.
The Company’s estimated residual value of leased vehicles at the end of lease term was $23.5 billion as of December 31, 2024. 51 Table of Contents Auditing management’s estimate of the residual value of leased vehicles involved a high degree of judgment.
The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion and $0.8 billion at December 31, 2023 and 2022. We had marketable debt securities, including those held by Cruise, of $7.6 billion and $12.2 billion classified as available-for-sale at December 31, 2023 and 2022.
The potential increase in fair value resulting from a 10% decrease in quoted interest rates would have been $0.7 billion at December 31, 2024 and 2023. We had marketable debt securities of $7.3 billion and $7.6 billion classified as available-for-sale at December 31, 2024 and 2023.
These interest rate scenarios are purely hypothetical and do not represent GM Financial's view of future interest rate movements. At December 31, 2023 and 2022, GM Financial was liability-sensitive, meaning that more liabilities than assets were expected to reprice within the next 12 months.
These interest rate scenarios are purely hypothetical and do not represent GM Financial's view of future interest rate movements. 48 Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES At December 31, 2024, GM Financial moved to an asset-sensitive profile from a liability-sensitive profile in 2023, meaning that more assets than liabilities were expected to reprice within the next 12 months.
As discussed in Note 2 to the financial statements, provisions for dealer and customer incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale. The liabilities for dealer and customer allowances, claims and discounts amount to $6.1 billion at December 31, 2023.
Provisions for dealer and customer sales incentives are recorded as a reduction to Automotive net sales and revenue at the time of vehicle sale. The liabilities for dealer and customer allowances, claims and discounts amount to $7.3 billion at December 31, 2024. Auditing the estimate of sales incentives involved a high degree of judgment.
The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been insignificant at December 31, 2023 and 2022. We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S.
The potential loss in fair value for such financial instruments from a 10% adverse change in all quoted foreign currency exchange rates would have been $0.3 billion and insignificant at December 31, 2024 and 2023.
Removed
GM Financial's hedging strategies approved by its Global Asset Liability Committee are used to manage interest rate risk within policy guidelines.
Added
We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S. dollars as part of the consolidation process.
Removed
Auditing the estimate of sales incentives involved a high degree of judgment.
Added
At December 31, 2024 we used derivative instruments such as commodity forwards, swaps and options to hedge a portion of our exposures with respect to forecasted commodity purchases of steel, copper, aluminum, palladium, lithium and nickel. The net fair value liability of financial instruments with exposure to commodity price movements was insignificant at December 31, 2024 and 2023.
Added
The potential change in fair value for such financial instruments from a 10% adverse change in the underlying commodity prices would have been $0.2 billion and insignificant at December 31, 2024 and 2023.
Added
During the term of a lease, management periodically evaluates the estimated residual value and may adjust the value downward or upward.

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