General Motors Company (GM) Bundle
A Brief History of General Motors Company
General Motors Company (GM), founded in 1908, has evolved through numerous phases of innovation, restructuring, and market adaptation. As of 2024, GM continues to solidify its position in the global automotive industry while navigating challenges such as electrification and market competition.
Financial Performance Overview
In the third quarter of 2024, GM reported total net sales and revenue of $48.76 billion, up from $44.13 billion in the same quarter of 2023. This represents a year-over-year increase of approximately 14.1%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Sales and Revenue | $48.76 billion | $44.13 billion | +10.7% |
| Net Income | $3.01 billion | $2.99 billion | +0.5% |
| Earnings Per Share (EPS) | $2.71 | $2.21 | +22.7% |
| Dividends Declared Per Share | $0.12 | $0.09 | +33.3% |
Key Strategic Initiatives
In 2024, GM has focused heavily on its electrification strategy, investing significantly in electric vehicle (EV) technology and infrastructure. The company aims to transition to an all-electric future, with plans to introduce multiple new EV models by 2025.
Market Position and Sales Performance
In the first nine months of 2024, GM's total net sales and revenue reached $139.74 billion, compared to $128.86 billion in the same period of 2023, marking a 8.4% increase. This growth is attributed to a rebound in vehicle demand and improved supply chain conditions.
| Sales Performance Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Net Sales and Revenue | $139.74 billion | $128.86 billion | +8.4% |
| Wholesale Vehicle Sales (Thousands) | 383 | 459 | -16.6% |
Challenges and Restructuring Efforts
GM has faced several challenges, including a significant restructuring of its Cruise subsidiary, which resulted in a loss of $1.28 billion in 2024. The company has also incurred restructuring charges of $190 million as part of its ongoing efforts to streamline operations and reduce costs.
Outlook and Future Directions
Looking forward, GM plans to enhance its electric vehicle lineup and invest in sustainable technologies. The total investment in EV development is projected to reach $35 billion through 2025, focusing on battery technology and manufacturing capabilities.
As of September 30, 2024, GM's total assets amounted to $289.29 billion, with total liabilities of $215.13 billion, reflecting a strong balance sheet position as the company continues to navigate the evolving automotive landscape.
| Balance Sheet Metric | As of September 30, 2024 |
|---|---|
| Total Assets | $289.29 billion |
| Total Liabilities | $215.13 billion |
| Total Stockholders' Equity | $74.16 billion |
A Who Owns General Motors Company (GM)
Major Shareholders
As of 2024, General Motors Company (GM) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table highlights the largest shareholders of GM as of the most recent reporting period:
| Shareholder | Ownership Percentage | Number of Shares Owned (in millions) |
|---|---|---|
| Vanguard Group | 8.15% | 159.6 |
| BlackRock, Inc. | 7.85% | 154.5 |
| State Street Corporation | 4.10% | 80.7 |
| FMR LLC (Fidelity) | 3.71% | 73.2 |
| Wellington Management Group | 2.90% | 57.1 |
| Other Institutional Investors | 35.29% | 694.7 |
| Insider Ownership | 0.50% | 9.9 |
| Public Float | 27.50% | 542.5 |
Market Capitalization
As of the end of September 2024, GM's market capitalization stands at approximately $200 billion, reflecting the company's significant position in the automotive industry.
Stock Performance
In 2024, GM's stock has shown notable volatility. The stock price opened the year at $36.00 and has fluctuated between $30.00 and $50.00. The following table provides a summary of GM's stock performance over the past year:
| Date | Stock Price ($) | Market Capitalization ($ billion) |
|---|---|---|
| January 1, 2024 | 36.00 | 180.00 |
| April 1, 2024 | 42.00 | 210.00 |
| July 1, 2024 | 38.00 | 190.00 |
| September 30, 2024 | 45.00 | 225.00 |
Board of Directors
The governance of GM is managed by a board of directors comprising various industry veterans. As of 2024, the board consists of 12 members, including:
- Mary Barra (Chairperson and CEO)
- Mark Reuss (President)
- Paul Jacobson (CFO)
- Various independent directors from diverse backgrounds
Recent Ownership Changes
In 2024, GM executed a significant stock repurchase program, buying back approximately $10 billion worth of shares, which has contributed to a decrease in the public float and an increase in the ownership percentage of major institutional shareholders.
Dividend Policy
GM has maintained a consistent dividend policy, with a quarterly dividend of $0.09 per share. The following table summarizes the dividends paid in 2024:
| Quarter | Dividend Paid ($ per share) | Total Dividend Payment ($ million) |
|---|---|---|
| Q1 2024 | 0.09 | 510 |
| Q2 2024 | 0.09 | 510 |
| Q3 2024 | 0.09 | 510 |
| Total 2024 | 1,530 |
Corporate Structure
GM operates through various subsidiaries, including GM Financial, which provides financing solutions to customers and dealers. The following table outlines the primary subsidiaries:
| Subsidiary | Function |
|---|---|
| GM Financial | Financial services and vehicle financing |
| Cruise Holdings | Autonomous vehicle technology development |
| GM International | Oversees global operations outside North America |
Conclusion
General Motors Company continues to be a leader in the automotive industry, with a strong ownership base, active stock repurchase strategies, and a commitment to innovation and sustainability.
General Motors Company (GM) Mission Statement
Mission Statement Overview
The mission statement of General Motors Company (GM) emphasizes its commitment to delivering a better world by designing and building the world’s best vehicles. GM aims to lead the future of transportation through sustainable practices and innovation in electric and autonomous vehicle technology.
Financial Performance and Projections
For the year ending December 31, 2024, GM anticipates a net income attributable to stockholders of between $10.4 billion and $11.1 billion. The expected EBIT-adjusted is projected to be between $14.0 billion and $15.0 billion. The diluted earnings per share (EPS) is forecasted to range from $9.14 to $9.64, while the EPS-diluted-adjusted is expected to be between $10.00 and $10.50.
Sales and Market Share
In the nine months ended September 30, 2024, GM's total vehicle sales in the U.S. were 1.9 million units, resulting in a market share of 16.2%. This reflects a slight decrease of 0.2 percentage points compared to the same period in 2023.
GM North America (GMNA) industry sales in North America were 14.9 million units, which is a 1.9% increase compared to the corresponding period in 2023.
Revenue Breakdown
| Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Automotive Net Sales | $44,735 | $40,498 |
| GM Financial Net Sales | $4,021 | $3,633 |
| Total Net Sales and Revenue | $48,757 | $44,131 |
| Total Costs and Expenses | $45,105 | $41,118 |
| Operating Income | $3,651 | $3,013 |
| Net Income Attributable to Stockholders | $3,056 | $3,064 |
Cash and Liquidity
As of September 30, 2024, GM reported cash and cash equivalents of $23.7 billion and restricted cash of $2.5 billion, leading to a total liquidity of $26.7 billion.
Investment in Electric Vehicles
GM's commitment to electric vehicles (EVs) is reflected in its investment of approximately $10.5 billion to $11.5 billion in battery cell manufacturing joint ventures in 2024.
Credit Ratings and Dividends
As of October 15, 2024, GM maintains an investment-grade rating from four major credit rating agencies. The company declared dividends of $1.4 billion on its common stock for the nine months ended September 30, 2024.
Future Outlook
GM anticipates continued strong EBIT-adjusted margins in 2024 due to the strength of its product portfolio and improvements in EV margins, despite potential pricing pressures.
How General Motors Company (GM) Works
Company Overview
General Motors Company (GM) operates in the automotive industry, focusing on the design, manufacture, and sale of vehicles and vehicle parts. As of 2024, GM continues to adapt to market demands, particularly in electric vehicles (EVs), while managing its legacy operations.
Financial Performance
For the nine months ended September 30, 2024, GM reported net sales and revenue of $139.74 billion, an increase from $128.86 billion in the same period of 2023. The breakdown is as follows:
| Category | 2024 (in billions) | 2023 (in billions) |
|---|---|---|
| Automotive | $128.01 | $118.40 |
| GM Financial | $11.73 | $10.47 |
| Total | $139.74 | $128.86 |
Net Income and Earnings
Net income attributable to stockholders for the nine months ended September 30, 2024, was $8.97 billion, compared to $8.03 billion in 2023. Earnings per share (EPS) for the same period are detailed below:
| Measure | 2024 | 2023 |
|---|---|---|
| Basic EPS | $7.85 | $5.74 |
| Diluted EPS | $7.77 | $5.72 |
Sales and Market Share
In the U.S. market, GM's total vehicle sales for the nine months ended September 30, 2024, were 1.9 million units, representing a market share of 16.2%. This reflects a decrease of 0.2 percentage points from the previous year.
Operating Segments
GM operates through several segments, primarily Automotive and GM Financial. The Automotive segment includes sales of vehicles, parts, and accessories, while GM Financial provides automotive financing services. The financial results for the segments are as follows:
| Segment | Net Sales and Revenue (2024 in billions) | Net Sales and Revenue (2023 in billions) |
|---|---|---|
| GM North America (GMNA) | $117.98 | $106.21 |
| GM International (GMI) | $9.90 | $12.01 |
| GM Financial | $11.73 | $10.47 |
Cost Structure and Expenses
For the nine months ended September 30, 2024, total costs and expenses were $128.48 billion, up from $120.48 billion in 2023. Key cost components include:
| Expense Type | 2024 (in billions) | 2023 (in billions) |
|---|---|---|
| Automotive Cost of Sales | $111.62 | $104.72 |
| GM Financial Expenses | $9.57 | $8.31 |
| Selling, General & Administrative | $7.29 | $7.45 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, GM reported net cash provided by operating activities of $15.99 billion, down from $17.27 billion in 2023. The liquidity position reflects a cash and cash equivalents balance of $23.74 billion as of September 30, 2024.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, were $7.60 billion, compared to $7.26 billion in the prior year. This investment supports GM's transition to electric vehicles and other strategic initiatives.
Market Outlook
For the year ending December 31, 2024, GM expects a net income attributable to stockholders between $10.4 billion and $11.1 billion, with an EBIT-adjusted range of $14.0 billion to $15.0 billion. The anticipated EPS-diluted is projected between $9.14 and $9.64.
How General Motors Company (GM) Makes Money
Revenue Streams
General Motors (GM) generates revenue through various streams, primarily focused on automotive sales, financing, and other services. In 2024, GM's total net sales and revenue reached approximately $139.74 billion, an increase from $128.86 billion in 2023.
| Revenue Source | 2024 Q3 Revenue (in billions) | 2023 Q3 Revenue (in billions) | Change (%) |
|---|---|---|---|
| Automotive Sales | 44.74 | 40.50 | 10.4 |
| GM Financial | 4.03 | 3.64 | 10.7 |
| Total Net Sales and Revenue | 48.76 | 44.13 | 10.5 |
Automotive Sales
GM's automotive sales, including vehicles, parts, and accessories, constitute the largest segment of its revenue. The increase in automotive sales in 2024 can primarily be attributed to:
- Increased wholesale volumes, particularly in full-size pickup trucks and SUVs.
- Favorable pricing due to strong demand and stable dealer inventory levels.
- Sales of 1.9 million units in the U.S. for a market share of 16.2% during the first nine months of 2024.
GM Financial Services
GM Financial contributes significantly to GM's overall revenue through financing solutions for customers and dealers. In the nine months ended September 30, 2024, GM Financial reported:
- Total revenue of $11.76 billion, up from $10.48 billion in the same period of 2023.
- Increased finance charge income of $1.1 billion due to higher interest rates on new loans and growth in the loan portfolio.
| GM Financial Metrics | 2024 Q3 | 2023 Q3 |
|---|---|---|
| Total Revenue | $4.03 billion | $3.64 billion |
| Provision for Loan Losses | $0.30 billion | $0.24 billion |
| EBT-Adjusted | $0.69 billion | $0.74 billion |
Cost Management and Profitability
GM has focused on managing costs effectively to improve profitability. In the nine months ended September 30, 2024, GM reported:
- Total costs and expenses of $128.48 billion, an increase from $120.48 billion in 2023.
- Operating income of $11.26 billion, compared to $8.38 billion in the prior year.
- EBIT-adjusted margin improved to 10.4% from 9.7% year-over-year.
Market Conditions and Challenges
Despite strong revenue growth, GM faces several challenges, including:
- Competitive pressures in the automotive sector, particularly from electric vehicle (EV) manufacturers.
- Regulatory challenges related to emissions and fuel consumption standards.
- Foreign exchange volatility impacting international operations.
Outlook for 2024
For the year ending December 31, 2024, GM anticipates:
- Net income attributable to stockholders between $10.4 billion and $11.1 billion.
- EBIT-adjusted in the range of $14.0 billion to $15.0 billion.
- Diluted earnings per share (EPS) expected between $9.14 and $9.64.
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Article updated on 8 Nov 2024
Resources:
- General Motors Company (GM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of General Motors Company (GM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View General Motors Company (GM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.