*

Projects net income of $11.2-$12.5 bln this year, topping

analyst expectations of $10.8 bln

*

GM takes $4 bln charge for China restructuring, causing $3

bln

net loss in Q4

*

Company misses 200,000 EV wholesale goal in 2024, expects

to hit

300,000 in 2025

By Kalea Hall

DETROIT, Jan 28 (Reuters) - General Motors ( GM ) on

Tuesday posted fourth-quarter 2024 results and a 2025 earnings

forecast ahead of Wall Street expectations as the U.S. automaker

continued to see strong consumer demand for its pricey

gasoline-powered trucks and SUVs.

GM sold vehicles at an average price of $50,000 for the year,

and executives see a 1% to 1.5% drop in North American pricing

power and a modest decline in gas-powered vehicle volume in

2025, leaving it in a relatively strong position.

The company expects losses will narrow with its

battery-powered vehicles, a reorganization of the China business

will lead to improved results, and GM is ending robotaxi

development at Cruise, its autonomous vehicle unit, which will

lead to savings.

The automaker is projecting net income of $11.2 billion to

$12.5 billion this year, topping analyst expectations of $10.8

billion, as calculated by LSEG.

The guidance does not account for tariffs, cuts to electric

vehicle incentives and tax changes, which U.S. President Donald

Trump has threatened to impose.

GM is one of the automakers most exposed to Trump's plans on

two important fronts: EVs, where it has made aggressive

investments, and tariffs, because it has substantial

manufacturing in Mexico and Canada, countries that Trump is

targeting.

The Detroit carmaker does not break down its EV losses, but said

in 2024 that revenue was higher than fixed costs including labor

and material costs, a metric that it calls positive variable

profitability. The figure does not include costs such as

building assembly lines, but indicates financial progress in the

EV rollout.

GM did not meet its goal of producing and wholesaling 200,000

EVs in North America in the year, instead ending up at 189,000

units wholesale, Chief Financial Officer Paul Jacobson said on a

call with reporters. GM did reduce its EV inventory from 100

days at the end of the third quarter to 70 days.

GM previously had forecast EV operating losses would narrow by

between $2 billion and $4 billion this year from undisclosed

levels, although Jacobson told reporters the decline in losses

was likely to be closer to the $2 billion end based on a

wholesale goal of 300,000 for the year.

"We do think that we can grow our EV demand. We're going to

continue to see how EV adoption progresses in 2025," Jacobson

said.

GM's fourth-quarter revenue of $47.7 billion surpassed analyst

expectations of $43.9 billion. The automaker's adjusted earnings

per share of $1.92 in the quarter also exceeded analyst

forecasts of $1.89 per share.

RESTRUCTURING CHARGES

GM reported pre-tax profit of $2.5 billion in the quarter

but reported a $3 billion net loss, mostly because of $4 billion

in restructuring charges in China where it lost $4.4 billion in

the year. The China business did return to profitability before

restructuring charges in the fourth quarter, Jacobson said.

GM and its Chinese joint venture partner are "implementing a

wide range of restructuring initiatives that we've highlighted

this year that will include reducing capacity to operate with

utilization levels of about 80% or better," Jacobson said,

adding the restructuring could be completed without additional

capital from GM.

GM partners with SAIC Motors in China to build Buick,

Chevrolet and Cadillac vehicles.

GM's adjusted earnings per share of $10.60 for the year

surpassed the market expectation of $10.39. GM's revenue of $187

billion beat estimates of $183 billion.

GM took a charge of $500 million in the fourth quarter for its

Cruise autonomous business unit. The automaker announced in

December its plans to halt funding for Cruise's robotaxi program

after investing $10 billion in it since 2016.

GM is instead focusing on providing autonomous technology for

personal vehicles and is expecting to save $500 million this

year on Cruise.

The results follow GM's 2024 sales report of 2.7 million

vehicles sold for the year, up 4% from 2023.

GM sold 114,432 EVs in the year, a 50% increase from 2023.

The electrified versions of the mainstream Chevrolet Equinox and

Blazer boosted GM's EV sales, as did the Cadillac Lyriq with its

sales surpassing gas-powered luxury SUVs.