GM faces risks from intense competition, especially in China, where competitors are prioritizing volume over profit. Regulatory challenges, including emissions standards, and potential losses on investments in Automotive China JVs and GM Financial China JVs are also noted. Product liability claims, recalls (e.g., Takata airbags, Chevrolet Bolt), and potential litigation-related losses are significant concerns. Economic downturns, supply chain disruptions, and fluctuating raw material prices pose further risks. Finally, the success of the autonomous vehicle (AV) business, Cruise, is uncertain, with ongoing regulatory scrutiny and potential for further restructuring charges.
Financial Upside
GM anticipates strong EBIT-adjusted margins in 2024, driven by a robust product portfolio, improved EV margins, and cost reduction efforts. The company expects substantial net income attributable to stockholders between $10.4 and $11.1 billion for the year ending December 31, 2024. GM Financial is expected to benefit from increased finance charge income and growth in the portfolio size. Continued strong consumer demand for vehicles, particularly full-size trucks and SUVs, is also a positive factor.
