While electric vehicle (EV) adoption is progressing slower than anticipated and gasoline-powered vehicles continue to dominate, General Motors (GM) CEO Mary Barra is laying out a roadmap that suggests a brighter, more stable future. During an investor event in Spring Hill, Tennessee, on October 8, Barra reassured investors that while the road ahead may be challenging, GM remains positioned for profitable growth—both from its traditional combustion engine offerings and its evolving EV lineup.
In a conversation aimed at calming concerns, Barra forecasted that GM’s profits in 2025 will mirror those of 2024, signaling confidence in the automaker’s ability to weather a softening EV market and shifts in consumer behavior. While the EV transition may have slowed, she emphasized that GM’s profit margins on internal combustion engine (ICE) vehicles are still robust, and the company is beginning to see its EV sales ramp up.
Also, don’t forget that you can get discounted new car pricing with a free quote through qualified local dealer partners.
“A lot of people believe the auto industry has hit peak profitability, but GM has plenty of upside,” Barra told shareholders, suggesting that the market’s view of GM’s growth potential might be overly pessimistic.
Barra also touched on the company’s performance in China, a critical market where GM has been navigating challenges. Although she confirmed a reduction in inventory and improvements in sales, details about the company’s restructuring efforts in the region remained scarce.
One of the most pressing issues for GM in recent months has been the trouble faced by its autonomous vehicle (AV) subsidiary, Cruise. After a high-profile incident involving a self-driving car that struck and dragged a pedestrian, Cruise has returned to supervised driving operations in select cities. Barra offered cautious optimism, noting that GM continues to believe in the long-term potential of autonomous technology. GM’s Chief Financial Officer, Paul Jacobson, added that the Cruise division is expected to limit losses to $2 billion in 2025, reflecting the company’s ongoing investment in AV development while mitigating financial risks.
While GM had once pushed aggressive EV production and profitability targets, the company’s tone at the investor day was more measured. Barra reiterated GM’s commitment to its electric future, stating that GM’s EV lineup is expected to reach positive variable profitability by the end of the year, but with a tempered outlook on market pricing. Jacobson shared that the company expects operating losses on EVs to narrow by $2 billion to $4 billion in 2025, driven by cost reductions and efficiency improvements.
A particularly notable update was GM’s decision to move away from the “Ultium” branding for its batteries, a name the company had previously spotlighted during high-profile marketing efforts, including a Super Bowl ad. Instead, GM will now focus on more flexible battery chemistry and configurations to adapt to changing industry needs. Kurt Kelty, head of battery cells at GM, explained that this strategic shift allows for greater innovation and responsiveness to market demands, which could be crucial as battery technology evolves.
While some automakers, like Ford and Toyota, are diversifying with hybrids, GM remains focused on its ICE vehicles for the near term. GM’s President, Mark Reuss, reinforced the company’s commitment to gasoline-powered vehicles, citing strong demand and the fact that emissions requirements won’t intensify until 2027. At that time, GM plans to introduce its own hybrid models. This approach reflects GM’s belief that there is still plenty of life left in the internal combustion engine market, even as the industry trends toward electrification.
GM’s investor day painted a picture of a company in transition, but one that remains focused on stability and profitability. The automaker is doubling down on efforts to simplify operations, reduce complexity, and trim costs, all of which should contribute to stronger profit margins moving forward. Investors left the event with a cautiously optimistic view of GM’s future, bolstered by reassurance that the automaker is adapting to industry shifts while staying committed to long-term growth.
As GM navigates the balance between its existing ICE business and its evolving EV strategy, Barra’s message was clear: The future may be uncertain, but GM has positioned itself to weather the storm and emerge stronger.
