The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

General Motors, founded in 1908, is the largest automaker by revenue in the U.S. It manufactures cars, trucks, SUVs, crossovers, and commercial vehicles for its Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brands. It wholly owns the self-driving car company Cruise, which it fully acquired in February 2025, and plans to use its technology to develop GM driver assistance technology.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

The region's best workplaces put integrity, inclusion, and respect at the center of their workplace culture.

Great-Places-To-Work-Asia-2025_Team Photo_General Motors Philippines

General Motors ranks No. 70 on the 2025 Best Companies to Work For Southeast Asia.

Fortune 100 Best Companies To Work For – Southeast Asia

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are autos and auto parts manufacturers.

Fortune Sector Leaders: Motor Vehicles and Parts

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-General Motors

The auto manufacturing giant led by Mary Barra jumped 14 spots on this year’s list. 
<ul> 
 	<li>Despite ongoing supply-chain issues and rising interest rates, GM brought in $9.9 billion in profits, down less than 1% from the year prior.</li> 
 	<li>Barra has set ambitious goals for GM’s electric vehicle conversion, and the company has pledged to sell only zero-emissions vehicles by 2035. GM cut prices on its existing EV models in late 2022, and also introduced the Equinox, a $30,000 electric SUV.</li> 
 	<li>GM is aiming to cut $2 billion in costs by the end of 2024. In early 2023, it initially avoided layoffs after 5,000 salaried workers took buyouts. The company later eliminated the jobs of several hundred contract workers.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-General Motors

The auto manufacturing company led by Mary Barra jumped four spots on this year’s list. 
<ul> 
 	<li>Despite ongoing supply-chain issues and rising interest rates, GM brought in $9.9 billion in profits, down less than 1% from the year prior.</li> 
 	<li>Barra has set ambitious goals for GM’s electric vehicle conversion, and the company has pledged to sell only zero-emissions vehicles by 2035. GM cut prices on its existing EV models in late 2022, and also introduced the Equinox, a $30,000 electric SUV.</li> 
 	<li>GM is aiming to cut $2 billion in costs by the end of 2024. In early 2023, it initially avoided layoffs after 5,000 salaried workers took buyouts. The company later eliminated the jobs of several hundred contract workers.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

World's Most Admired Companies

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 General Motors

General Motors has gone further than many established auto manufacturers in the race to develop electric vehicles: GM says it will sell only zero-emissions vehicles by 2035. In January 2022 the company announced a $7 billion investment in the remodeling of several of its Michigan manufacturing facilities, with the aim of boosting EV pickup production. GM also announced that month that it would begin selling used cars on a new online platform called CarBravo.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-049-General Motors

Last year was a watershed for the auto industry from an investment perspective, as shares in incumbent carmakers came under pressure in the face of an mass investor exodus that favored upstart electric-vehicle manufacturers, especially Tesla. In August 2020, General Motors triggered the beginning of a rally in its stock price after unveiling its first serious Tesla competitor. The Cadillac Lyriq SUV will be built off a scalable architecture dedicated to battery-powered electric vehicles, an architecture designed to reduce costs and boost range. GM’s push into BEVs gained momentum following the November election. Days after President Biden took the U.S. back into the Paris Agreement in one of his first acts in office, CEO Mary Barra said her company would move to sell electric-only models exclusively by 2035—a dramatic shift for one of the giants of the automotive fossil-fuel era. As of mid-May 2021, GM’s stock had more than doubled since the Lyriq’s debut.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-22-General Motors

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-040-General-Motors

A 40-day strike by General Motors workers at the company's U.S. factories left many Chevrolet and Cadillac dealers without inventory at the end of 2019. While consumers showed interest in the company’s midsize crossovers like the Chevrolet Equinox and Traverse, sales of larger SUVs such as the Cadillac Escalade and Chevrolet Suburban declined, contributing to a 16% slide in profits last year. Meanwhile customers just aren’t buying the well-reviewed Chevrolet Bolt electric vehicle.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-018-General-Motors

A 40-day strike by General Motors’ workers at its U.S. factories left many Chevrolet and Cadillac dealers without inventory at the end of 2019. While consumers showed interest in the company’s midsize crossovers like the Chevrolet Equinox and Traverse, sales of larger SUVs like the Cadillac Escalade and Chevrolet Suburban declined, contributing to a 16% slide in profits last year. Of concern for the future, customers just aren’t buying the well-reviewed Chevrolet Bolt electric vehicle.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Best Companies To Work For Southeast Asia

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GPTW national list

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General Motors, founded in 1908, manufactures cars, trucks, SUVs, crossovers, and commercial vehicles for its Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brands. It wholly owns the self-driving car company Cruise, which it fully acquired in February 2025, and plans to use its technology to develop GM driver assistance technology.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

General Motors (GM): Company Profile, Stock Price, News, Rankings

legacy

General Motors

general motors

Good morning and welcome to the General Motors Company fourth quarter and full year 2025 conference call. During the opening remarks, all participants will be in a listen-only mode. After the opening remarks, we will conduct a question-and-answer session. We are asking analysts to limit their questions to one and a brief follow-up. To ask a question, press star then one on your telephone keypad to join the queue. To withdraw your question, press star then two. As a reminder, this conference call is being recorded Tuesday, January 27th, 2026. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.

Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the fourth quarter and full year 2025. Our conference call materials were issued this morning and are available on GM's Investor Relations website. We are also broadcasting this call via webcast. Joining us today are Mary Barra, GM's Chair and CEO, along with Paul Jacobson, GM's Executive Vice President and CFO. Susan Sheffield, President and CEO of GM Financial, will also be joining us for the Q&A portion. On today's call, management will make forward-looking statements about our expectations. These statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC.

Please review the safe harbor statement on the first page of our presentation, as the content of this call will be governed by this language. With that, I'm delighted to turn the call over to Mary.

Thank you, Ashish, and good morning, everyone. I'm incredibly proud of our global team, including our dealers and suppliers, for delivering an exceptional 2025. Together, we grew the business and adapted to significant changes in tax and trade policy to deliver full-year EBIT adjusted at the high end of our guidance range. We are pleased that we delivered a total return of 54% for our investors, and I'd like to share some of the operating highlights that underscore our momentum. In the United States, we achieved our highest full-year market share in a decade. In fact, 2025 was our fourth consecutive year of market share growth, and we continue to deliver with low inventory, low incentives, and strong pricing. Once again, GM led the industry in full-size pickups and full-size SUVs, and we had our best year ever in crossovers driven by vehicles like the redesigned Chevrolet Equinox and Traverse.

We have also been very successful with smaller, profitable crossovers like the Chevrolet Trax and Buick Envista because we provide tremendous value with great styling, technology, and a suite of safety features at some of the lowest prices in the market. We're very proud that Car and Driver named Chevrolet Trax to its 10 Best list for the third year in a row, joining the Chevrolet Corvette, Cadillac CT5-V Blackwing, and our full-size SUVs. Not only that, but the Cadillac Escalade IQ won MotorTrend's prestigious SUV and Technology of the Year awards. Lastly, the vehicle and technology solutions that GM Envolve delivers to our commercial, government, and rental customers helped us lead the U.S. fleet segment for the second consecutive year. We demonstrated another true core competency throughout the year: our agility and speed in adapting to change.

We proactively managed our net tariff exposure, reducing it well below our initial expectations, thanks to self-help initiatives and policy actions that support companies like GM that have substantial and growing commitments to American manufacturing. We were also quick to respond to slowing EV demand by selling our share in the Ultium Cells Lansing plant and pivoting Orion Assembly from EV to ICE production. Our compelling vehicle and technology portfolio, a resilient U.S. market, and the steps we have taken to strengthen our position should help make 2026 an even better year for GM. The charges we took in the second half of the year to reduce EV capacity will reduce our fixed cost and resolve the majority of our commercial claims tied to lower volume. In addition, our warranty expense is moving in the right direction, and our EV losses will be lower.

As a result, we expect full-year EBIT adjusted margins in North America will be back in the 8%-10% margin range. We are also operating in a U.S. regulatory and policy environment that is increasingly aligned with customer demand. This allows us to onshore more production to help meet strong demand for our ICE vehicles. We continue to believe in EVs, and our portfolio brought almost 100,000 new customers to GM last year. We know EV drivers don't often go back to ICE, so we'll continue executing our plan to dramatically reduce costs and to be well-positioned for the future. This will require continued investment, but at much lower levels, and I'm confident in our path to profitability. Our strong foundation and operating discipline are why our average annual free cash flow generation has structurally improved from $3 billion-$10 billion over the last five years.

Consistently strong cash generation has allowed us to execute all phases of our capital allocation program, from investing in the business and our people to maintaining a strong balance sheet and returning capital to shareholders. We believe that formula is sustainable, which is why we are increasing our quarterly dividend rate by 20% and planning future share repurchases. The growth of OnStar services and Super Cruise further underscores our confidence. In 2025, OnStar had a record 12 million subscribers, including more than 620,000 Super Cruise subscribers, achieving nearly 80% year-over-year growth. OnStar fleet subscriptions hit 2 million, which is 2x any other competitor. This year, we will continue to grow our Super Cruise business in North America and expand into South Korea, the Middle East, and Europe.

We expect our deferred revenue from software and services to be approximately $7.5 billion by the end of this year, up nearly 40% from 2025. We are also confident in the turnaround of our China business and our growing new energy vehicle portfolio. They are now about 50% of sales in China and profitable across all price points. As we look further ahead, our annual production in the U.S. is expected to rise to an industry-leading 2 million units after we begin production of the Chevrolet Equinox in Kansas, bring the Chevrolet Blazer to Tennessee, and add incremental capacity for the Cadillac Escalade, and launch our next-generation full-size pickups at Orion Assembly in Michigan. We are also launching our sixth-generation small block V8, and the engineering teams are leveraging world-class virtual tools to deliver better fuel efficiency and power for our customers and faster development times.

We reached our performance and emission goals at a third of the time versus the prior program by conducting thousands of combustion chamber simulations, while we reduced prototyping for a 20% savings in material and tooling costs. AI, machine learning, and robotics are also driving safety, quality, and speed in our manufacturing plants so we can get great products and technologies into the hands of customers faster. For example, a cross-functional team developed a predictive weld quality model that has enabled us to deliver even more consistent welds and tighter control, directly improving cost and quality. We are also deploying robotic systems alongside humans to make their jobs safer and easier to perform. For example, a robot can pick up an exhaust system and position it so a single operator can complete the installation without strain.

Our robotics and AI work will converge at Orion Assembly, where plant upgrades include advanced vision systems and the installation of 2,500 robots and cobots controlled by GM-designed software. Then, in 2028, we expect to launch our breakthrough LMR battery chemistry. LMR will help us reduce cell and PAT costs by $several thousand. Also, in 2028, we expect to launch our second-generation software-defined vehicle architecture for ICE vehicles and EVs. It will unite every major system, from propulsion to infotainment and safety, on a single high-speed compute core. The performance upgrade includes 10 times more OTA capacity and 1,000 times more bandwidth, allowing our vehicles to get better, smarter, and deliver more value to our customers over time. It's also an enabler for our eyes-off, hands-off driving technology. This technology and our new software architecture will both launch on the Cadillac Escalade IQ in 2028.

With our Super Cruise experience, the expertise we brought in-house from Cruise, and our learnings from millions of miles of fully autonomous driving, we believe we have everything we need to deliver a safe, reliable, and highly capable system that customers will embrace. Safety is key to building trust in new technologies, as we've demonstrated with Super Cruise. For our eyes-off solution, we are building in redundancy with lidar, radar, and cameras, and we will begin on highways. Finally, I want to mention that we are hosting our call today from our new global headquarters in Hudson's Detroit. This beautiful space is designed for the collaborative and tech-enabled way people work today, while also saving us $tens of millions annually. It's the latest example of our commitment to operate as efficiently and as profitably as we can. Thank you, and now I'll turn the call over to Paul.

Thank you, Mary, and welcome, everyone. Over the past several years, we've been on an incredible journey. In the face of a rapidly evolving industry and significant macro challenges, the resilience and adaptability of the GM team have been truly exceptional. These strengths have translated into consistently strong financial performance, including $12.7 billion of EBIT adjusted and $10.6 billion of adjusted automotive free cash flow in 2025, resulting in a year-end cash balance of $21.7 billion. As Mary noted, our product portfolio keeps getting better, driving market share gains of 60 basis points in 2025, while we maintain some of the lowest incentives in the entire industry. This disciplined approach has been a key contributor to nearly $25 billion of free cash flow generation over the past two years. This robust cash generation enables us to execute confidently across all pillars of our capital allocation framework.

Over the last two years, we've invested more than $20 billion in capital projects to support growth in our core business and advance our strategic priorities. Looking ahead to 2026 and 2027, we expect to invest $10-$12 billion annually, including approximately $5 billion to expand U.S. manufacturing capacity for some of the highest-demand vehicles and further reduce our tariff exposure. We're also proactively strengthening our balance sheet by thoughtfully managing debt maturities. In 2025, we retired $1.8 billion of debt, further enhancing our financial flexibility and reinforcing our long-term resilience. Returning capital to shareholders remains a cornerstone of our capital strategy. In the fourth quarter, we executed $2.5 billion in open market share repurchases, retiring another 33 million shares and bringing total buybacks for the year to $6 billion. In 2025, we also distributed more than $500 million in dividends.

Since announcing our accelerated share repurchase program in November 2023, we have returned $23 billion to shareholders through share repurchases. These actions have reduced our outstanding share count by more than 465 million shares, or nearly 35%, leaving approximately 930 million diluted outstanding shares at year-end 2025. Our strong execution and consistent capital returns have delivered substantial shareholder value, with our stock price appreciating more than 170% since late November 2023. This performance reinforces our conviction that repurchasing GM stock at current valuation levels, which are back to historical norms but remain well below our peers, represents one of the most compelling opportunities to continue to generate long-term shareholder value.

Yesterday, our board approved a new share repurchase authorization of $6 billion and a 20% increase in our dividend to $0.18 per share, reflecting its confidence in our ability to generate strong future cash flows and underscoring our ongoing commitment to returning capital to shareholders. Now let's turn to our fourth quarter results. Total company revenue was $45 billion, down approximately 5% year-over-year, primarily due to our disciplined approach to production and dealer inventory, including aligning EV production to demand. We also faced production constraints on the Chevrolet Trax and a year-over-year headwind from strategic decisions to end production of the Chevrolet Malibu and Cadillac XT4. The lower volume was partially offset by strong pricing across our 2026 model year lineup. EBIT adjusted was $2.8 billion, and EPS diluted adjusted was $2.51, both increasing year-over-year despite the impact of tariffs.

We incurred incremental costs for alternate chip sourcing related to Nexperia totaling $100 million in Q4, and we anticipate another $100 million of pressure in Q1 2026. Hats off to our supply chain team as they did a great job finding alternatives to ensure we had no production disruptions. Adjusted automotive free cash flow was $2.8 billion, driven by higher EBIT adjusted performance and favorable cash timing. I want to take a moment to address tariff costs for the quarter and for the full year, as well as the charges we have taken related to EVs. Through the third quarter, we incurred $2.4 billion in gross tariff costs. In the fourth quarter, we incurred another $700 million, bringing the total for the year to $3.1 billion, which was below our predicted range of $3.5-$4.5 billion.

When we provided updated guidance in October, we were tracking towards the low end of this range but took a conservative approach given the dynamic trade and tariff environment. We were able to do even better based on strong execution and favorable policy developments during the quarter, including the benefit from a lower tariff rate for Korea. For the full year, we were able to offset more than 40% of these gross tariff costs through a combination of go-to-market actions, footprint adjustments, and cost reduction initiatives. Turning now to our EV charges. During the third and fourth quarters, we reassessed our EV capacity and manufacturing footprint to better align with softer-than-expected consumer demand, particularly in light of recent U.S. government policy changes, including the termination of certain consumer tax incentives.

As a result, in the third quarter, we recorded charges totaling $1.6 billion, including $1.2 billion of non-cash impairment charges, primarily related to transitioning our Orion Assembly from EV to ICE production. The remaining $0.4 billion consisted of cash charges associated with contractual cancellations and supplier settlements. In the fourth quarter, we recorded an additional $6 billion of charges. This included $1.8 billion of non-cash impairments, largely driven by our decision to discontinue production of the BrightDrop electric van and to impair certain EV-related assets. The remaining $4.2 billion was primarily related to contract cancellations and supplier settlements, which will impact future cash flows. The aggregate Q3 and Q4 charges totaled $7.6 billion, of which $4.6 billion is expected to be settled in cash. In 2025, we made approximately $400 million in cash payments and expect to pay the majority of the remaining balance in 2026.

Moving forward, we expect material but significantly smaller cash and non-cash EV-related charges as we continue commercial negotiations with our supply base and address proposed regulatory changes to greenhouse gas emission standards. Any greenhouse gas-related charges would be non-cash. It is important to note that besides BrightDrop, we have not impaired our existing retail portfolio of EVs. We are working to improve the profitability of these vehicles through new battery technologies, engineering improvements, and operational efficiencies, along with a more rational EV market. As consumer adoption of EVs increases, albeit at a slower pace than previously anticipated, we expect to achieve the necessary scale to deliver EVs profitably over time. Now let's move to the fourth quarter regional results. North America delivered EBIT adjusted of $2.2 billion and margins of 6.1%.

We ended the year with 48 days of dealer inventory, which is slightly below our 50-60-day year-end target. This positions us well for 2026, allowing us to balance production to various demand levels. We are seeing positive trends in our warranty performance, with monthly cash flows continuing to be stable. GM International, excluding China equity income, delivered EBIT adjusted of $200 million, driven by strong execution in South America and the Middle East, along with China equity income of $100 million, excluding the restructuring charge. We recorded a $600 million special item in our auto China equity income, primarily connected to prior restructuring actions. It's important to note that these charges are not expected to require any capital from GM, as the joint venture has sufficient cash to cover these costs.

I want to commend our China team for executing a disciplined multi-year plan to right-size capacity, accelerate electrification, and revitalize our operations. These collective efforts have been instrumental in achieving significant milestones, including new energy vehicle sales reaching nearly 1 million units in 2025, representing more than half of the total sales in China. GM Financial also had another strong year of profitability and capital returns to GM. Fourth quarter EBIT adjusted was down slightly year-over-year at $600 million. Lower lease termination gains were partially offset by higher retail yields and lower provision expense. GM Financial's full-year EBIT adjusted was $2.8 billion, within their guidance of $2.5-$3 billion, and they paid dividends of $1.5 billion to GM. Last week, GM Financial received approval for their industrial bank application. Once launched, this bank will enable them to accept deposits, providing another source of stable and diversified funding.

Over time, we also expect this to lower the cost of funds and enhance their ability to offer more competitive auto loans to customers. I want to personally thank Susan and the entire GMF team for their persistence throughout this process. Now let's turn to our 2026 guidance, where we expect EBIT adjusted of $13-$15 billion, EPS diluted adjusted of $11-$13 per share, and adjusted automotive free cash flow of $9-$11 billion. Starting with tariffs, we anticipate gross tariff costs in the $3-$4 billion range, slightly higher than 2025 due to an additional quarter of tariff exposure, partially offset by the reduced Korea tariff and expanded MSRP offset program.

For Q1, we expect the gross tariff impact to be in the $750 million-$1 billion range, which is well below the quarterly impact in Q2 and Q3 of 2025, but more than Q4. The higher quarterly run rate in 2026 versus Q4 2025 is largely driven by the timing of tariff costs, which can be lumpy, particularly as it relates to the supply chain. The team did a great job offsetting over 40% of our gross tariff costs in 2025 through go-to-market strategies, footprint changes, and cost efficiencies. As we look ahead to 2026, we expect these cost savings to be sustained and believe there are additional actions that can help mitigate our tariff impact. For the industry, we expect total U.S. SAAR to be in the low 16 million unit range for the year. We expect North America ICE wholesale volumes to be flat to up modestly.

ICE volumes this year are constrained due to portfolio shifts, including the ending of the Cadillac XT6 and some expected downtime ahead of the new Chevrolet Silverado and GMC Sierra launches. We anticipate a benefit of $1 billion-$1.5 billion related to the actions we've taken to right-size our EV capacity. The benefits from both EV-related charges and substantially lower EV wholesale volumes will positively impact both mix and cost. We also expect that the temporary downtime at our Ultium Cells joint venture will result in lower production tax credits, but this impact should be largely offset by positive inventory adjustments from lower cell inventory levels. Lower production tax credits in 2026 should then represent a tailwind in 2027 as we resume normalized production. We expect North America pricing to be flat to up 0.5% as we realize the full-year benefit of model year 2026 price increases.

While this includes a placeholder for potentially higher incentives due to the competitive environment, we are confident in our ability to maintain pricing discipline. While some uncertainties remain in the regulatory environment, we are anticipating a benefit in the range of $500-$750 million, primarily related to savings from no longer having to purchase compliance credits. In addition, we are seeing positive trends in warranty costs, which are expected to deliver a $1 billion benefit versus 2025. We expect an increase of around $400 million of high-margin revenue generated from the expansion of OnStar software and services, including Super Cruise. This growth is expected to help increase deferred revenue from $5.4 billion at the end of 2025 to approximately $7.5 billion by the end of 2026, further strengthening our future margin profile and long-term growth trajectory.

We expect headwinds in the range of $1-$1.5 billion associated with the onshoring of vehicle production to the U.S., investments to enhance supply chain resiliency, and investments to support our software initiatives. While these initiatives create near-term pressure, they will increase capacity of our highly profitable full-size pickups and SUVs, as well as to help further mitigate tariff costs beginning in 2027. We also expect incremental headwinds in the range of $1-$1.5 billion, driven primarily by recent trends in aluminum, copper, and other key commodities, as well as higher DRAM costs and unfavorable foreign exchange movements. Turning to our regions, we expect both China and our international operations outside of China to be profitable and deliver results largely consistent with 2025. GM Financial is once again expected to deliver EBIT adjusted in the $2.5-$3 billion range, reflecting a stable credit environment.

Importantly, as Mary noted, we believe we have a clear and achievable path back to 8%-10% North America margins in 2026. The midpoint of our EBIT adjusted guidance supports this outcome, and we are confident in our ability to deliver this goal ahead of investor expectations. We are accelerating innovation and investing in advanced mobility, manufacturing technologies, and robotics to chart the future. This includes expanding Super Cruise to bring hands-free driving to more vehicles and scaling high-value digital services through OnStar, further strengthening our competitive advantage and enhancing the customer experience. In summary, we enter this year with strong momentum, a resilient balance sheet, and the operational flexibility to deliver on our commitments. We remain focused on investing in long-term profitable growth while retaining the agility needed to navigate a dynamic macro and regulatory landscape, positioning GM for sustained success not only in 2026, but well beyond.

Thank you. And with that, we'll move to the Q&A portion of the call.

Thank you. As a reminder to analysts, we are asking that you limit your questions to one and a brief follow-up so that we may get to everyone on the call. To ask a question, press star then one on your telephone keypad to join the queue. To withdraw your question, press star then two. Our first question will come from the line of Dan Levy with Barclays. Your line is open.

Hi, good morning. Thanks for taking the questions. Wondering if you could first just address the assumption on pricing. And specifically, I think we know that we are in an environment where arguably it's a demand-constrained environment. There's one of your competitors that is keen on gaining. I'm sure you're coming off of a, let's say, tougher comp on the pricing side.

I think you did just under $1.5 billion in positive pricing last year. So can you just unpack the assumption for pricing to be flat to up? How much of that is just the benefit of ice or some other dynamics in there?

Hey, good morning, Dan. Thanks for the question. What I would say is going into this year, we're not modeling any increases. This is really just the annualization of what we did in 2025 coming through primarily for model year 2026. So we're obviously going to take it one day, one week, one month at a time as we go through and watch where we are. But we're not putting projections out there as if we've got a lot of price increases to go through.

We're cognizant of what the environment is out there, but we're also confident with our vehicles and with the new truck launches later this year. I feel like we can continue to drive the momentum commercially that we have in the past with no significant change.

Great. Thank you. As a second question, I wanted to just ask about the dynamics of your product portfolio. Within that, first, maybe you could just address the fixed cost base that you have. You still have all of your EV programs intact. You still have much of the battery capacity intact. This was set for a higher volume outlook. To what extent does this portfolio align with what's going to likely be higher near-term ICE mix? Then maybe you could just address the potential to add hybrids into the portfolio.

Just how much more do we have to see the portfolio and the fixed cost base shift to adjust to this new reality that we have?

Well, I'll start, and then I'll turn it over to Paul for some of the financial piece of it. But we think we have the right portfolio. We have an incredibly strong internal combustion engine portfolio, as Paul mentioned, with the new trucks coming out. And unlike many others, we invested in having a dedicated EV platform that gives us a foundation for the portfolio we have. As we've said, the investments we're making now in EVs will be very much focused on cost reduction, like LMR. We also have teams on each of our EVs to continue to take cost out beyond the battery. And then we have announced in the past that we will have some hybrids in key segments.

So I think we're going to have the right portfolio. And we also are focused on the end game. We know once somebody drives an EV, they rarely go back to internal combustion engine. And we also, a big enabler of EV adoption is going to be charging. And last year, the level two chargers increased by 25%. So EV adoption is going to grow over time. We think we're well positioned there. So we were very, I think, thoughtful about the way that we adjusted capacity in light of a very dramatic change in the regulatory environment, as well as eliminating the consumer tax credit.

Yeah. Just to add to that, Dan, I think as we went through the restructuring, we were mindful of where is the excess capacity that we know we're not going to need for a long time because we had built up for a very different regulatory environment, as Mary had said. But we're also cognizant of making sure that we preserve capacity to be able to pivot and rotate where we need to to get the cost savings. So particularly as it relates to battery capacity, we've got enough to be able to transition to LMR and to LFP as those projects get underway over the next couple of years.

So it really was trying to look at what is the right short-term decision, but also how do we balance that against the long term and where we know it's going to go or we believe it's going to go in the future. And as far as vehicle programs, remember, with the product cycle that the industry has, some of these decisions were made years ago, and we have to do our best to be able to pivot to where demand is going to be. And I think if you look at this management team and what it's accomplished over the last several years in the midst of a lot of uncertainty, I think we've got what it takes to be able to respond and meet the consumer where they are as they continue to evolve.

Thank you. Our next question comes from Michael Ward with Citigroup. Your line is open.

Thanks very much. Good morning, everyone. Good morning. Two things. First, on the inventory, you see the impact on the pricing. Is that inventory discipline going to continue, and what are the implications for cash flow? Is that one of the ingredients that's adding up to the stronger-than-expected cash generation?

Hey, good morning, Mike. Thanks for the question. So on the inventory side, I think the commercial team and the production team have both done a really good job of coordinating the last few years to keep us within that targeted range of 50-60. We had a really strong December month, which is why we ended the year at 48 days of inventory. So I think we're going to continue to balance that where it is. I don't think there's a big buildup contemplated.

In fact, with the transition to the new truck, we'll lose some production as well. But overall, I think it's that discipline that has really helped us to drive much, much more consistency in our cash generation going forward. So we're not banking on any significant inventory builds, although it is an opportunity potentially to get back into that 50-60-day range.

And then on this announcement by the Industrial Bank and I think FDIC approval the other day, that seems like a bigger deal than it just on the outset as it relates to cost of capital for GM Financial. How much can you save from just a cost standpoint of capital on that?

Yeah. I'll start, and then I'll let Susan chime in as well.

But this is really a great achievement and one that candidly probably should have been approved a few years ago as we went through that. But the perseverance of the team to get that through provides yet another opportunity to drive capital in an efficient way for us. It'll take some time. But Susan, I'll let you comment on anything you want to add.

Yeah. Thanks, Paul, and thanks for the question. Very excited to have the conditional approval and get the Industrial Bank up and running. And as Paul said, this is going to be complementary to our funding platform, and it will allow us to offer depository products and another source of funding to help us bring down the cost of funds somewhat. They are high-yield savings account and broker deposits.

So as it gets up and running, again, complementary to our footprint, it's not going to replace how we fund the business, but will be complementary to it and allow us to bring down the cost of funds. And the basis points over time and on our debt complex, that's a meaningful move.

Meaningful, like 100 basis points? Is that the type of meaningful move we're talking about?

Probably not that much. It just depends on the rate environment, but it's going to help us be more competitive.

Thank you. Our next question comes from Joseph Spak with UBS. Your line is open.

Thank you. Good morning, everyone. First, just I guess bigger picture, Mary, I wanted to go back to some of your comments on portfolio, and you mentioned hybrids. I mean, that's a pretty broad term nowadays with traditional plugins and EREVs.

So I was wondering if you could maybe shed a little bit more light on how you're seeing that portfolio evolving. And then is that considered in the $10 billion-$12 billion CapEx you've guided for for the next couple of years? And I guess most importantly, yes, powertrain, I think, is going to be part of the consumer decision, but the features in the car are seemingly becoming more important than you're sort of highlighting that with some of the Super Cruise and other software. So will all these vehicles be able to use that next-gen architecture you showed that I think is supposed to launch in 2028?

Sure. Joe, a lot packed into that question, but first of all, any products that I've talked about are comprehended in the $10 billion-$12 billion dollar capital. So yes.

SDV, our next-generation software-defined platform, and Super Cruise will be available across both ICE and EV platforms. From a hybrid perspective, again, we're looking at where are the segments that there's the most demand for hybrids that are important from our total portfolio. So I'm not going to give you any specifics other than we're looking at a segment-by-segment for what we feel that we need to have to make sure we compete. I'll just reiterate that we're in the last four years, even as others have brought on hybrids, we're still growing share. That, I think, just indicates that we have the right product portfolio. Lastly, I just want to comment. You're absolutely right. The propulsion system of the vehicle is one distinguisher, but people are looking for their vehicle to do more.

And that's where I think we also are going to be distinguishing ourselves as a full-line OEM that's been around for a while, able to have a very modern electrical architecture that will then be the foundation for offering more services, AI assistance, as well as continuing to grow Super Cruise and into our eyes-off, hands-off that we've announced for 2028. So I feel very confident that this is going to be another area where GM distinguishes itself from others with what we have planned and what we'll be rolling out. And the team is excited and it's on track.

Thanks. And then, Paul, I just wondered if we could unpack the $1 billion-$1.5 billion in onshoring and software expense. And is there any way we should think about the split between that?

Please correct me if I'm wrong in thinking about this, but I imagine the software expense portion of that is ongoing and may even grow over time in line with what we just talked about. But the cost really in the startup, the onshoring, I would think of as more as temporary, and maybe there's some relief as we think beyond 2026. Is that right?

Yeah. Thanks, Joe. I would probably split them about 50/50 as we're thinking about it going forward. Obviously, the ramp-up costs of the onshoring will be offset as they go into production into the future. So there's a little bit of an offset there. And then certainly on the software side, we're continuing to invest in those technologists and those programmers to be able to get where we need to go on SDV 2.0 and on autonomy and ultimately Super Cruise enhancements going forward.

So I'd split them about 50/50. It'll vary over time, but that's the way we're thinking about it.

Thank you. Our next question comes from Andrew Percoco with Morgan Stanley. Your line is open.

Great. Thanks so much. Good morning, everyone. Thanks for taking the question. I want to start on the tariff disclosure, the $3 billion-$4 billion gross tariff cost for 2026. It sounds like you're assuming the lower South Korea tariff in that assumption. Can you maybe just talk to you? I know it's obviously overnight, some headlines that it might be going back to 25%. What would that mean for you? And then maybe just remind us what you're doing in terms of tariff mitigation for 2026. I think you talked about 35% offset for 2025.

Wondering if that's a similar range for 2026 and maybe what some of the moving pieces are to get you there.

Well, I'll start and then turn it over to Paul for some of the specifics, but we are encouraging and hopeful that the countries will get the regulatory approvals or legal approvals in their country to put into place the deal that was actually negotiated and agreed to in October. As Paul indicated in our guidance, we assumed 15%. And if there's a period of time where it's not 15%, that's going to be something ahead when that will work to offset. Paul, if you want to get into some of the specifics.

Yeah. So thanks for the question, Andrew. The offset, the self-help provisions, just as a reminder, we talked about go-to-market. We talked about manufacturing footprint changes, and we talked about fixed cost reductions.

Obviously, per Joe's question that we just went through, there's some fixed cost pressure that's new with the manufacturing additions that we'll take on in 2026. That'll obviously lead to significant offsets in 2027 as we begin to onshore production. But in 2026, it's really a lot of the annualization of what we've done. So with the go-to-market and then the fixed cost reductions, we'll get an annualization benefit in 2026. So we should end up at a position where our net tariffs are actually lower in 2026 than they were in 2025. So that equates to slightly more than the 40% offset just from that annualization.

Got it. Okay. That's super helpful. And then maybe just coming back to Super Cruise, you mentioned expanding that into some international markets. Can you just remind us maybe what regulatory approvals are needed to do that?

From a functionality standpoint, can you maybe just give us a roadmap for what improvements consumers might expect to see going forward, whether that be point-to-point? Just kind of wondering what the progression of that looks like over the next few years before you get to full eyes-off, hands-off L3 with that next-gen platform. Thank you.

So, Andrew, we can get you the specific. We have a roadmap that we're working to where we continue to expand and add more features that we haven't announced yet. So stay tuned on that. And as to the regulatory specifics, I think I don't have them top of mind, but I know the team is working and the rollout is planned, and I don't think there's any barriers for stopping the global expansion that we have of Super Cruise.

Our next question comes from James Picariello with BNP Paribas. Your line is open.

Hi, everybody. Just have a question. First, on the GM North America margin range of 8%-10%, I mean, that clearly embeds a pretty sizable step up, and you have the $14 billion midpoint guide for the total company. Just want to address the moving pieces there as to how we get to that range, yet still only have total company at the $14 billion. I guess what my model is currently saying is if I get to 8%-10% for GM North America, even at the low end, it would imply higher overall than an EBIT. So any clarity there would be great. Thank you.

We're incredibly proud of the work that the North America team is doing to continue to drive back to that 8%-10% margins. Many of the tailwinds that we mentioned in the prepared remarks about improved EV profitability, improved warranty expense, regulatory costs all benefit North America. So it's a journey that I think is ahead of where investors were, and we've worked hard to try to make sure that we can deliver that in 2026. And I think our guidance reflects the confidence that we'll be able to do that. Obviously, a lot of things going on in the world internationally and with the work that the China team has done that kind of disrupts a little bit of the balance that we've seen historically.

But overall, we think it's a good start to the year in terms of laying out these expectations, and we're set to go get them.

Yep. Understood. And then just my follow-up is on GM's memory chip supply and just an understanding of how much of this year's supply is already locked in, and is pricing also predominantly locked in for the year? Thank you.

Well, we shared that between commodities, DRAM, and FX, we see a headwind of $1 billion-$1.5 billion. We're not breaking that out specifically. I would say the team is actively working from a memory chip perspective. And as of now, we don't see any issues that are going to impact our ability to produce.

I think you've seen this over the last couple of years, even going back to the semiconductor shortage to see how the team works and gets ahead of these. And so that's obviously ongoing work the team is doing. But as of now, we don't see anything that's going to create an issue for us there.

Thank you. Our next question comes from Isaiah McKelly with TD Cowen. Your line is open.

Great. Thank you. Good morning, everyone. Just first, a question on the full-size pickup launch this year. I'm curious kind of what's embedded into the guide at a high level. I know, Paul, you mentioned some downtime. I don't know if you're able to clarify that or quantify that. And should we think about some of the volume price mix impacts more later this year or more of a 2027 impact?

Obviously, we're really excited about the new trucks that are coming online. We'll obviously have to take some downtime as we retool for that. Some of that we'll be able to build ahead a little to offset, but you will see that impacted in our volumes this year overall. On the pricing, I would say it's largely going to be a 2027 tailwind, I think, going forward. And the one thing I've shared this with a number of investors that the historical norm of a giant pop in price for a model year really doesn't hold in this environment where pricing has held up on the later years of the model run going forward. So obviously, in the low inventory, low incentive world that we've seen, we haven't seen the typical pricing heuristic where we see a lot of pricing erosion at the end of a production run.

We're not expecting to see a giant pop in prices, but this is an opportunity to deliver more value. We're confident that when the new trucks come out, we're going to continue to drive the type of share momentum and pricing discipline that we've seen over the past several years.

That's very helpful. As a quick follow-up, I was hoping you can share kind of at a high level what you're assuming the declines in EV volume this year, how much of that could translate to incremental ICE demand for GM, and kind of how does that affect your inventory and kind of wholesale volume planning throughout the year?

Well, it's a great question. I don't think anyone really knows what the city-state EV demand will be in this new environment.

I think we're still seeing we saw a fairly substantial pull ahead before the consumer credit went away. So we're looking at other geographies that had EV incentives and then took it away. It literally was six months before we really started to understand what steady state would be. Having said that, we're looking across all aspects of where we can have additional volume power to answer the fact that we ended the year with a lower inventory below the 50-60 days. So we're going to continue to look at where the opportunities to get more with the full-size truck downtime. We're pretty tight, but the team usually does a great job of pulling out more production when it's needed. As an old manufacturing person, those are the challenges that you love to have.

So again, we're going to see where the EV market is, and then we're going to maximize as much as we can from an internal combustion engine perspective.

That's very helpful. Appreciate that. Thank you.

Thank you. Our next question comes from Colin Langan with Wells Fargo. Your line is open.

Oh, great. Thanks for taking my questions. If I look at the quantified puts and takes in the guidance, they kind of net out. So what is actually driving the expected increase? There's a slight increase in pricing. And then is the rest volume? Because I thought your commentary said ICE volume flat to slightly up. So what is the gap to kind of drive numbers up year-over-year?

Yeah. So good morning, Colin. Thanks for the question. So we tried to do a good job of laying out sort of the key headwinds and tailwinds.

But when we lay all of that out together, we actually see some upside coming through on that. Some of it will be in our ability to lower our net tariff exposure. Some of it will be on the regulatory side that we expect coming in as well. And then some of it is going to be continued work on driving EV profitability improvements. So we laid out what we see on some of the fixed cost relief. But as you know, we struggled this year with sort of step down after step down after step down in EV costs that, at the end of the day, result in a lot of supplier claims that we've tried to sort of all bring together in the one-time step down.

So when you look at it across the board, all of those result in what we believe is going to be a pretty strong year-over-year improvement, as we've highlighted.

So is that a cost improvement that you're implying outside of what's listed in the slide?

General Motors (GM) Q4 2025 Earnings Call Transcript

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