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General Motors anticipates that its adjusted earnings for 2025 will be in a similar range to this year, according to CFO Paul Jacobson during the company’s investor day. The Detroit automaker had targeted adjusted earnings before interest and taxes for 2024 between $13 billion and $15 billion. Achieving these targets for 2024 and maintaining similar earnings in 2025 would be a significant accomplishment, considering the challenges expected in the auto industry next year.
Jacobson mentioned that GM’s earnings for 2025 are expected to be supported by $2 billion to $4 billion in better earnings from electric vehicles, as well as increasing sales and profits from traditional gas-powered vehicles. The company also expects to have eight vehicles in the market with higher EBIT margins compared to previous models.
GM’s capital spend for 2025 is projected to be consistent with this year, with expected capital spending between $10.5 billion and $11.5 billion. The company has seen improvements in its EV variable profit by more than 30 points year-over-year through the third quarter.
CEO Mary Barra noted that GM is on track to produce and wholesale approximately 200,000 EVs for North America in 2024, achieving profitability by the end of the year. The company has also made reductions to fixed costs and has experienced relatively stable demand and incentive spend.
Aside from financial targets for 2025, GM provided few significant updates during its investor day. The company’s shares closed unchanged at $46.01, with a 28% increase in value this year. However, recent downgrades and price adjustments by Wall Street analysts have put pressure on the stock.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.