General Motors Co. in Detroit reported full-year income for 2020 of $6.4 billion, and earnings before interest and tax (EBIT)-adjusted income of $9.4 billion. Along with the COVID-19 pandemic, the company dealt with a Takata airbag-inflator recall announced in November.
The full year EBIT-adjusted margin was 7.9 percent, and full-year automotive operating cash flow was $7.5 billion with an adjusted automotive free cash flow of $2.6 billion.
The company reported earnings per share (EPS)-diluted of $4.33 and earnings per share-diluted-adjusted of $4.90.
GM North America reported a full-year EBIT-adjusted of $9.1 billion and EBIT-adjusted margin of 9.4 percent. GM international full year-EBIT-adjusted saw a loss of $500 million, while China equity income was $500 million.
“GM’s 2020 performance was remarkable by any measure, and even more so in a year when a global pandemic caused companies around the world – including GM – to temporarily suspend manufacturing operations to keep employees safe,” says Mary Barra, chairman and CEO, in a letter to shareholders. “Our dealers also took extraordinary steps to protect our customers, such as providing seamless online shopping, purchasing and delivery solutions.
“I’m proud of the thousands of GM employees who raised their hands to produce critical-care ventilators or to make and donate personal protective equipment for frontline health care workers and schools.”
Cruise saw a full-year EBIT-adjusted that was a loss of $900 million, while GM Financial reported record full-year EBT of $2.7 billion.
Fourth-quarter income was $2.8 billion, and EBIT-adjusted was $3.7 billion. The EBIT-adjusted margin was 9.9 percent, and automotive operating cash flow for the quarter was $5.2 billion. Adjusted automotive free cash flow was $3.4 billion.
GM North America’s fourth-quarter EBIT-adjusted was $2.6 billion, while the EBIT-adjusted margin was 8.7 percent. GM international’s fourth quarter EBIT-adjusted was $300 million, and China equity income was $200 million.
Cruise saw an EBIT-adjusted overall loss for the quarter of $300 million, while GM Financial reported a fourth-quarter EBT-adjusted price of $1 billion.
Barra, in the letter to shareholders, went on to detail several ongoing and future initiatives:
“During the pandemic, we found better and faster ways to work, and accelerated mission-critical growth businesses like our electric and self-driving vehicle initiatives. For example:
- We increased our EV and AV investments to $27 billion from 2020 through 2025. That includes launching 30 EVs globally and achieving EV market leadership in North America. By mid-decade, GM is aiming to sell a million EVs per year in our two largest markets –North America and China, with our joint venture partners.
- Ultium Cells LLC, our joint venture with LG Chem, broke ground on a nearly 3-million-square-foot plant in Lordstown, Ohio that will produce millions of battery cells every year.
- We announced Ultifi, a reimagined, personalized EV customer experience with a single platform that simplifies discovery, education and management of GM products and services.
- And we introduced Periscope, a new safety brand that integrates vehicle technology, research and advocacy for policies that promote safer driving.”
- She adds the automaker is “excited that our commitment to an all-electric future is changing how people think about GM. We’ve gone from being good stewards of a successful traditional automaker to being champions of growth.
- Our Ultium electrification platform is already helping drive the greatest era of transformation in the history of our company.
- Cruise is leveraging more than $2 billion in new investments from GM, Microsoft, Honda and institutional investors. Additionally, Microsoft’s Edge and cloud computing platform will accelerate the commercialization of self-driving vehicles.
- More growth will come from creating new sources of revenue through businesses like Brightdrop, subscription services like Super Cruise and OnStar Guardian, as well as OnStar Insurance Services.”