General Motors designs, builds, and sells trucks, crossovers, cars, and auto parts. It also provides software-enabled services like OnStar and Super Cruise, and offers vehicle financing through GM Financial. The company sells vehicles under four main brands in North America: Chevrolet, Buick, GMC, and Cadillac. It also sells through joint ventures in China under the Baojun and Wuling names. Most of the money comes from selling vehicles to independent dealers, who then sell to consumers. GM Financial adds another layer by providing loans and leases to buyers and floor-plan financing to dealers. The diagram below traces where the money goes.
Revenue has climbed steadily from $113.6 billion in 2021 to a peak of $171.6 billion in 2024, then dipped slightly to $168.0 billion in 2025. That growth looks healthy on the surface. But the gross margin tells a more complicated story. It held in a narrow band between roughly 10% and 12% from 2021 through 2024, then collapsed to just 5.3% in 2025. That drop happened because GM took $7.9 billion in charges in North America to write down its electric vehicle factories and cancel supply contracts after EV demand slowed sharply. Free cash flow moved in the opposite direction in 2025, rising to $17.6 billion, partly because large non-cash write-downs lowered reported profit without actually removing cash from the business.
The core profit engine right now is full-size pickup trucks and large SUVs sold in North America. GM's own data shows that trucks generate roughly 160% of the average variable profit across its North American portfolio, compared to about 40% for crossovers. That means a small shift in truck demand has an outsized effect on the bottom line. In 2025, GM sold 2.85 million vehicles in the United States, capturing a 17.2% market share, up from 16.5% in 2024. Trucks were the single largest category, with GM taking a 33% share of all U.S. truck sales.
China was once a major growth driver for GM. As recently as 2023, GM's Chinese joint ventures sold 2.1 million vehicles and generated a net profit of $1.1 billion. By 2024, those same joint ventures had swung to a net loss of $4.5 billion, and GM recorded impairment charges of $2.1 billion plus equity losses of $2.0 billion against its China operations that year. In 2025, losses narrowed to $0.3 billion in equity losses, partly because restructuring was already underway. Domestic Chinese brands have taken significant market share from foreign manufacturers by offering competitive electric and hybrid vehicles at lower prices.
Net debt has risen every year in the five-year window, from $89.3 billion in 2021 to $109.3 billion in 2025. A large portion of this sits inside GM Financial, which borrows money in capital markets to fund car loans and leases. That is a normal structure for a captive auto finance company. GM Financial's average debt outstanding was $116.5 billion in 2025, and it paid an effective interest rate of 5.6%. As long as customers keep repaying loans and used-car values hold up, this financing business runs smoothly. If credit conditions tighten or used-car prices fall sharply, loan losses and lease residual values become a problem.
Four specific risks stand out from the filings. First, U.S. government policy changes in 2025 eliminated consumer tax credits for EV purchases and reduced the strictness of emissions rules, which directly slowed EV demand and triggered the $7.9 billion in write-downs. Second, new import tariffs on vehicles, parts, and raw materials cost GM $3.1 billion in 2025, and the company estimates tariff impacts of $3.0 billion to $4.0 billion in 2026 under the current environment. Third, GM has signed long-term contracts to buy battery raw materials like lithium, nickel, and cobalt. If EV demand stays low, GM may be forced to accept and hold more of these materials than it can use. Fourth, the entire North American profit structure depends on strong demand for full-size trucks and SUVs. If fuel prices rise sharply or consumer preferences shift toward smaller vehicles, the profit mix deteriorates quickly.
GM has guided for earnings per share of between $11.00 and $13.00 for 2026, and for earnings before interest and taxes (adjusted) of between $13.0 billion and $15.0 billion. The company also plans capital spending of $10.0 billion to $12.0 billion in 2026, including continued investment in battery cell manufacturing. GM's stated target is to return its North American segment to historical profit margins of 8% to 10%, compared to the 6.8% it achieved in 2025 after the EV charges.