Throughout 2024, GM Chair and CEO Mary Barra emphasized that it would be the “year of execution.” Barra and her leadership team delivered on this promise, exceeding investor expectations and earning GM the distinction of Yahoo Finance’s 2024 Surprise of the Year.
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“The industry is transforming, and GM is proactively preparing for the changes ahead,” Barra stated in an exclusive interview with Yahoo Finance. GM’s strategic focus on mitigating EV losses and developing well-received vehicles has proven successful.
The company consistently raised its profit guidance throughout 2024, driven by strong demand for new crossover models like the Chevy Trax and Cadillac Lyriq EV, coupled with effective cost-cutting measures. This success allowed GM to repurchase $2.4 billion in stock, more than double the previous year’s pace, signaling confidence in the company’s long-term prospects.
GM’s stock surged 47% in 2024, significantly outperforming rival Ford’s 14% decline and exceeding the S&P 500’s 26% gain. “I’m incredibly proud of how well our EVs have been received,” Barra commented, reflecting on the year’s achievements. As she enters her 12th year as CEO, a remarkable tenure in the competitive automotive industry, the question arises: What lies ahead for GM in 2025?
From Factory Floor to Corner Office: Barra’s Journey
Following in her father’s footsteps, Barra’s career at GM began at age 18, inspecting fenders at a Pontiac plant. She earned a Bachelor of Science in electrical engineering from the General Motors Institute in 1985. Her career path encompassed roles in communications, marketing, and manufacturing, providing a deep understanding of the company’s operations. This experience has earned her credibility with employees and shareholders alike.
Barra’s leadership and decisive decision-making have positioned GM for success. Wedbush analyst Dan Ives, who rates GM stock as outperform, remarked, “GM has delivered this year. This could be a triple-digit stock if they continue to execute.”
GM’s third-quarter earnings surpassed Wall Street expectations, with revenue reaching $48.76 billion and adjusted earnings per share at $2.96. The automaker also raised its full-year outlook for the third time in 2024, contrasting sharply with Ford’s lowered profit guidance.
Crossovers, EVs, and Future Growth
Bank of America analyst John Murphy attributes GM’s strength to its successful crossover vehicles and a sharper focus on EV profitability. He expressed optimism about GM’s long-term product portfolio, which includes gas-powered trucks and cars alongside EVs.
“By 2027 and 2028, their pickup and large SUV franchise will be a significant driver,” Murphy stated. “No competitor has achieved this. We could see 18 million units in those years, indicating tremendous upside potential.”
While GM initially aimed for an all-electric lineup by 2035, the company has adopted a more flexible approach in response to industry-wide EV sales trends. Recent decisions include delaying a new Buick electric vehicle and selling its stake in a Michigan EV battery plant.
“We remain committed to our electrification plan but will be guided by consumer preferences,” Barra explained. “We want to offer consumers choices.”
Despite strong financial performance, GM’s stock trades at a relatively low forward price-to-earnings multiple of 4.9, compared to the S&P 500’s 23 and Ford’s 5.9. This discrepancy highlights the market’s uncertainty regarding EV profitability. However, Murphy emphasized GM’s record-breaking earnings, EBITDA, and free cash flow, suggesting a sustainable level of financial performance in the coming years.
Strategic Decisions and the Road Ahead
GM made several significant decisions in late 2024 to further bolster profitability, including restructuring its China operations and merging its Cruise robotaxi business with its autonomous driving technology group. “These difficult decisions were necessary to position the business for long-term success,” Barra stated.
Potential challenges in 2025 include the possibility of tariffs on auto imports from Mexico and Canada under the incoming Trump administration. GM has significant production facilities in these countries, raising concerns about potential cost increases and supply chain disruptions.
Barra acknowledges the potential impact of tariffs, stating, “Tariffs could affect prices and demand. We need to communicate the potential consequences of different policy decisions. I’m confident the new administration will prioritize the best interests of American consumers and the auto industry’s job creation potential.” GM’s performance in 2024 positions the company for continued growth, but navigating the evolving automotive landscape and potential trade challenges will be crucial for sustained success in 2025.
