General Motors Company

Company Overview

Business Model: General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts globally. The Company also provides software-enabled services and subscriptions worldwide. Its automotive operations are managed through two segments: GM North America and GM International, marketing vehicles under the Buick, Cadillac, Chevrolet, and GMC brands. Additionally, General Motors Company holds equity ownership stakes in entities, primarily in China, that market vehicles under the Baojun, Buick, Cadillac, Chevrolet, and Wuling brands. Automotive financing services are provided through its General Motors Financial Company, Inc. segment.

Market Position: General Motors Company leads the U.S. auto industry in sales, maintaining a strong presence in both mainstream and luxury vehicle categories. Its Chevrolet and GMC trucks, SUVs, and crossover utility vehicles drive volume growth in premium-priced market segments, while the Cadillac brand services the global luxury segment. The Company's electric vehicle portfolio has achieved significant market growth and strong positioning in the U.S. market, with New Energy Vehicles in China contributing to sales and business performance turnaround. General Motors Company's diversified portfolio of internal combustion engine and electric vehicles positions it to adapt to changes in market demand. In 2025, General Motors Company held a total worldwide market share of 6.8%, with a 17.2% market share in the United States and 7.1% in China.

Recent Strategic Developments:

• Autonomous Driving Refocus: In December 2024, General Motors Company announced a strategic shift to refocus its autonomous driving strategy on personal vehicles, ceasing funding for Cruise's robotaxi development. In February 2025, it acquired the noncontrolling interests in Cruise, began winding down robotaxi operations, and integrated GM and Cruise autonomous technical efforts into the GM North America segment.
• Electric Vehicle Portfolio & Capacity Realignment: General Motors Company has made significant investments in electric vehicles, establishing manufacturing and supply chain capacity for EVs, batteries, and components in North America. Due to a slowdown in consumer demand for EVs in North America, the Company strategically realigned its EV capacity and manufacturing footprint, recording charges of $7.9 billion in GM North America for the year ended December 31, 2025.
• Internal Combustion Engine Investments: The Company continues to invest in internal combustion engine vehicles, planning to introduce new battery chemistries and form factors for electric vehicles to enhance range, performance, and profitability. In 2025, General Motors Company announced approximately $4.0 billion in capital investments to onshore production at plants in Tennessee, Kansas, and Michigan over the next two years, and nearly $1.0 billion to build a new generation of advanced V8 engines in New York.
• Software-Enabled Technology Services: General Motors Company's vehicles are equipped with software-enabled services like OnStar and Super Cruise, aimed at improving customer experience and vehicle evolution. OnStar is a global leader in connected vehicle services, available in over 20 markets. Super Cruise enables hands-free driving on over 600,000 miles of compatible roads in the U.S. and Canada.
• China Operations Restructuring: General Motors Company and its joint venture partners are restructuring operations in China due to intense competition and a challenging regulatory environment. This resulted in an other-than-temporary impairment of equity interests of $2.1 billion and additional equity losses of $2.0 billion in 2024, and charges of $0.6 billion in 2025.

Geographic Footprint: General Motors Company operates globally, with automotive operations segmented into GM North America (United States, Canada, and Mexico) and GM International (primarily Asia/Pacific, Middle East, Africa, and South America, including China, Brazil, and South Korea). The Company maintains a network of 50 U.S. manufacturing plants and parts facilities, including 11 vehicle assembly plants. Major manufacturing and assembly operations outside the U.S. are located in Canada, Mexico, Brazil, China, and South Korea. OnStar services are available in more than 20 markets globally. General Motors Financial Company, Inc. conducts business in North America, South America, and through joint ventures in China.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 1.6%
• Net Margin: 1.5%

Investment in Growth:

• R&D Expenditure: $8.5 billion (4.6% of revenue)
• Capital Expenditures: $9.2 billion
• Strategic Investments:
  • Loan of $1.8 billion to Ultium Cells LLC in May 2025.
  • $0.8 billion investment in nonconsolidated affiliates in 2025.
  • Committed capital contributions of $4.0 billion to battery cell manufacturing joint ventures as of December 31, 2025.

Business Segment Analysis

GM North America

Financial Performance:

• Revenue: $154.3 billion (-2.0% YoY)
• Operating Margin (EBIT-adjusted margin): 6.8%
• Key Growth Drivers: Strong product portfolio, ongoing cost discipline, favorable product mix (increased full-size SUVs, crossovers, mid-size pickup trucks and vans), and favorable pricing due to strong demand and lean dealer inventory.
• Challenges: Unfavorable costs, including $3.0 billion in increased material and freight costs (of which $3.1 billion was due to tariffs), $1.3 billion in increased warranty-related costs, $0.3 billion in unfavorable net realizable value inventory adjustments (primarily EV-related), and $0.4 billion in increased manufacturing costs. Decreased net wholesale volumes, primarily from cars and full-size pickup trucks due to lower planned production for product upgrades.

Product Portfolio: The segment's profitability is significantly driven by high-margin full-size internal combustion engine SUVs and pickup trucks. The portfolio also includes Chevrolet and GMC trucks, SUVs, and crossover utility vehicles, and Cadillac luxury vehicles. Electric vehicles such as the Chevrolet Equinox EV, Cadillac LYRIQ, Cadillac ESCALADE IQ, and GMC Sierra EV are expanding the customer base and increasing EV market share.

Market Dynamics: U.S. industry sales increased by 1.7% to 16.6 million units in 2025. General Motors Company's total vehicle sales in the U.S. were 2.9 million units, achieving a market share of 17.2%. The segment is adapting to a slowing in consumer demand for electric vehicles in North America.

GM International

Financial Performance:

• Revenue: $13.4 billion (-3.3% YoY)
• Operating Margin (EBIT-adjusted margin): 5.5%
• Equity income (loss) — Automotive China: $(0.3) billion (compared to $(4.4) billion loss in prior year, representing a 92.8% improvement)
• Key Growth Drivers: Favorable pricing across multiple vehicle lines in Argentina, Brazil, and the Middle East, and a favorable product mix in Brazil and Argentina. Improved equity income from Automotive China Joint Ventures.
• Challenges: Decreased net wholesale volumes in Brazil, Korea, and Ecuador. Unfavorable foreign currency changes, primarily in the Argentine peso, Brazilian real, and Egyptian pound. Unfavorable costs due to increased material and logistics in Brazil and the Middle East.

Product Portfolio: The segment offers vehicles under the Buick, Cadillac, Chevrolet, and GMC brands. In China, through equity ownership stakes in joint ventures, vehicles are marketed under the Baojun, Buick, Cadillac, Chevrolet, and Wuling brands, with New Energy Vehicles contributing to sales performance.

Market Dynamics: China industry sales remained flat at 26.4 million units in 2025. General Motors Company's total vehicle sales in China were 1.9 million units, resulting in a market share of 7.1%. The segment faces intense competition from domestic competitors in the Chinese market and is undergoing restructuring plans, which included $0.6 billion in charges for Automotive China Joint Ventures in 2025.

Sub-segment Breakdown (Automotive China Joint Ventures):

• Wholesale vehicle sales: 2.1 million units (+13.4% YoY)
• Total net sales and revenue: $24.5 billion (+12.5% YoY)
• Net income (loss): $(0.7) billion (compared to $(4.5) billion loss in prior year)

General Motors Financial Company, Inc.

Financial Performance:

• Total Revenue: $17.1 billion (+7.5% YoY)
• EBT-adjusted: $2.8 billion (-5.5% YoY)
• Key Growth Drivers: Increased finance charge income of $0.5 billion due to higher effective yield and average portfolio balance. Increased leased vehicle income of $0.5 billion from a larger leased vehicle portfolio. Increased other income of $0.2 billion from earned premiums and fees on vehicle protection contracts.
• Challenges: Increased interest expense of $0.5 billion due to higher average debt outstanding. Increased operating expenses of $0.4 billion. Increased leased vehicle expenses of $0.3 billion due to lower lease termination gains and higher depreciation. Increased provision for loan losses of $0.2 billion due to a shift in the credit mix of loan originations.
• Penetration of U.S. retail sales: 33% (down from 39% in 2024).
• Prime loan originations (North America): 80% (down from 81% in 2024).
• Revenue Composition (2025): Leased vehicle income (46%), retail finance charge income (41%), commercial finance charge income (7%).
• Gains on terminations of leased vehicles: $0.6 billion (down from $0.8 billion in 2024).

Product Portfolio: General Motors Financial Company, Inc. provides retail loan and lease lending across the credit spectrum, as well as commercial lending products to dealers (floorplan financing, dealer loans) and commercial vehicle upfitters.

Market Dynamics: The segment is exposed to residual value risk on leased vehicles, which is heavily influenced by used vehicle prices. Competition from commercial banks, credit unions, and other financing and leasing companies impacts customer acquisition. As of December 31, 2025, the estimated residual value of leased vehicles was $25.0 billion.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $6.0 billion in 2025, comprising $4.0 billion for approximately 61 million shares and $2.0 billion through an Accelerated Share Repurchase program for 43 million shares.
• Dividend Payments: $0.5 billion in 2025.
• Future Capital Return Commitments: In January 2026, the Board of Directors increased the share repurchase program capacity by $6.0 billion to an aggregate of $6.3 billion. The quarterly common stock dividend was increased to $0.18 per share, effective January 2026.

Balance Sheet Position:

• Cash and Equivalents: $20.9 billion
• Total Debt: $130.3 billion (Automotive: $16.2 billion; General Motors Financial Company, Inc.: $114.0 billion)
• Net Cash Position: $(109.3) billion
• Credit Rating: All four independent credit rating agencies (DBRS Limited, Fitch Ratings, Moody's Investor Service, and S&P) rate General Motors Company's corporate credit at investment grade.
• Debt Maturity Profile: Automotive debt maturities range from 2028 to 2035. General Motors Financial Company, Inc.'s revolving credit facilities mature between 2026 and 2029, securitization notes payable between 2026 and 2037, and senior notes between 2026 and 2035.

Cash Flow Generation:

• Operating Cash Flow: $26.9 billion
• Adjusted Automotive Free Cash Flow: $8.4 billion (calculated as net automotive cash provided by operating activities of $18.7 billion, less capital expenditures of $9.2 billion, and adjustments for management actions of $1.1 billion).

Operational Excellence

Production & Service Model: General Motors Company's operational philosophy centers on designing, building, and selling vehicles and parts, complemented by software-enabled services. The Global Product Development organization, headquartered at the Technical Center in Warren, Michigan, is responsible for an integrated product and software ecosystem focused on safer, smarter, and more seamless driving experiences. This includes advanced driver assistance, autonomy, connected vehicle platforms, and the evolution of OnStar into an intelligent, always-on services layer.

Supply Chain Architecture: General Motors Company procures a wide array of raw materials (e.g., steel, aluminum, resins, copper, lead, precious metals), systems, components, and services from numerous suppliers. The Company maintains minimal raw material inventories, relying on "just-in-time" manufacturing. A strategic focus is on developing a resilient, scalable, and sustainable North America-focused supply chain, including strategic sourcing initiatives, investments in raw material suppliers, and multi-year supply agreements for critical electric vehicle battery materials such as lithium, cathode active material, manganese, graphite, nickel, cobalt, and rare earth elements.

Key Suppliers & Partners:

• Battery Cell Production: Ultium Cells Holdings LLC, a joint venture with LG Energy Solution, operates battery cell production plants in Warren, Ohio, and Spring Hill, Tennessee.
• Top Suppliers: Combined purchases from the two largest suppliers constituted approximately 12% of total purchases in 2025.
• China Joint Ventures: Key partners include Shanghai Automotive Industry Corporation for entities like SAIC General Motors Corp., Ltd., SAIC General Motors Sales Co., Ltd., and SAIC GM Wuling Automobile Co., Ltd.

Facility Network:

• Manufacturing: General Motors Company operates a network of 50 U.S. manufacturing plants and parts facilities, including 11 vehicle assembly plants. Major international manufacturing and assembly operations are in Canada, Mexico, Brazil, China, and South Korea. The Company plans $4.0 billion in capital investments over the next two years to onshore production in Tennessee, Kansas, and Michigan, and nearly $1.0 billion for V8 engine production in New York.
• Research & Development: The global vehicle architecture development team is based at the Technical Center in Warren, Michigan.
• Distribution: Products are primarily marketed through a network of independent authorized retail dealers, distributors, and authorized sales, service, and parts outlets globally.

Market Access & Customer Relationships

Go-to-Market Strategy: General Motors Company primarily markets its vehicles and automotive parts through a global network of independent authorized retail dealers, distributors, and authorized sales, service, and parts outlets. Many dealerships offer multiple General Motors Company brands. Dealers facilitate customer access to credit or lease financing, vehicle insurance, and extended service contracts, often provided by General Motors Financial Company, Inc. The Company also engages in direct sales or sales through its dealer network to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.

Customer Portfolio:

• Enterprise Customers: Fleet customers represent a significant portion of sales, though these transactions, particularly with daily rental car companies, are generally less profitable than retail sales.
• Customer Concentration: Fleet sales constituted 17.7% of total vehicle sales in 2025.

Geographic Revenue Distribution:

• United States: 74.6% of total consolidated net sales and revenue in 2025 (Automotive: $138.1 billion; General Motors Financial Company, Inc.: $14.6 billion).
• Non-U.S.: 17.5% of total consolidated net sales and revenue in 2025 (Automotive: $29.9 billion; General Motors Financial Company, Inc.: $2.5 billion).
• No individual country other than the U.S. represented more than 10% of total net sales and revenue.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The automotive industry is highly competitive and undergoing significant transformation, driven by regulatory changes and evolving consumer preferences. Historically characterized by excess manufacturing capacity, the industry sees market participants routinely introducing new vehicle models and features at decreasing price points. The market for vehicles is cyclical, influenced by general economic conditions, credit availability, and consumer spending, and also exhibits seasonal patterns with production variations and model changeovers throughout the year.

Competitive Positioning Matrix:

Direct Competitors

General Motors Company faces competition from traditional automotive original equipment manufacturers, as well as new entrants and non-traditional competitors such as software and ridesharing services backed by large technology companies. Manufacturers in lower-cost production countries like China and India are increasing competition in emerging and established markets. In China, competition is aggressive from both global and numerous domestic manufacturers, including technology companies.

Emerging Competitive Threats: New entrants, disruptive technologies, and alternative solutions, particularly in software, ridesharing, and direct-to-consumer sales channels, pose evolving competitive threats.

Competitive Response Strategy: General Motors Company's strategy includes continuous development and commercialization of new products and services beyond its traditional internal combustion engine business, such as electric vehicles, autonomous and ADAS technologies, and software-enabled connected services. The Company continues to invest in internal combustion engine vehicles while also developing new battery chemistries for electric vehicles to improve profitability. Its autonomous driving strategy has been refocused on personal vehicles, and electric vehicle capacity is being strategically realigned to match consumer demand.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The Company is exposed to cyclical and volatile global automobile market sales, where small changes in volume can disproportionately affect profitability. Slower-than-anticipated consumer adoption of electric vehicles, influenced by policy changes and other factors, poses a risk to its long-term EV strategy. Shifts in consumer preferences towards smaller, more fuel-efficient vehicles could weaken demand for higher-margin internal combustion engine trucks and SUVs. The highly competitive industry, characterized by excess manufacturing capacity, could negatively impact vehicle pricing and market share. Technology Disruption: Failure to timely deliver new products, services, and technologies, including electric vehicles, autonomous capabilities, and software-enabled services, in response to evolving consumer needs and competitive disruption, could harm the business. Customer Concentration: While not explicitly detailed as a concentration risk, fleet sales, particularly to daily rental car companies, are noted as generally less profitable than retail sales.

Operational & Execution Risks

Supply Chain Vulnerabilities: Operations are highly dependent on suppliers for timely delivery of systems, components, raw materials, and parts. Reliance on single-source suppliers for certain items increases disruption risk. Inflationary pressures and uncertain availability of commodities (e.g., steel, critical EV battery materials) can lead to higher production costs. The North American supply chain for electric vehicle raw materials currently has insufficient capacity to meet expected demand. Geographic Concentration: Processing and extraction of certain electric vehicle battery raw materials are concentrated in China, exposing the Company to potential import/export restrictions or tariffs. Capacity Constraints: The Company's high proportion of fixed costs and limitations on adjusting personnel costs exacerbate risks associated with incorrectly assessing demand for vehicles. Manufacturing Disruptions: Significant disruptions at any manufacturing facility, due to labor issues, supply chain problems, public health crises, or severe weather events, could harm reputation, increase costs, and reduce revenues. Joint Venture Risks: General Motors Company's numerous joint ventures, particularly in China and Korea, and for battery manufacturing and raw material sourcing, are not operated solely for its benefit and may involve limited control, potentially leading to divergent goals or misconduct. Pandemics & Public Health Crises: Future public health crises could disrupt global supply chains, manufacturing, sales, and financial operations, similar to past impacts.

Financial & Regulatory Risks

Market & Financial Risks: Exposure to foreign currency exchange rate fluctuations can create volatility in results. General Motors Financial Company, Inc. faces risks related to capital access, loan and lease portfolio performance, used vehicle prices, interest rates, and competition. Pension funding requirements could significantly increase due to financial market performance, interest rate changes, or changes in plan benefits or assumptions. Regulatory & Compliance Risks: Extensive global laws and regulations, particularly concerning vehicle emissions, fuel economy standards, and electric vehicle mandates, can significantly increase costs and affect product portfolios. Evolving regulations for advanced technologies like autonomous vehicles present compliance challenges. Chemical regulations globally and in North America are increasing costs and supply chain complexity. Vehicle safety standards, including recall requirements and crash test ratings, are costly and complex. Increasingly complex data privacy and protection regulations, including those related to AI, impose significant compliance costs and litigation risk. Legal Proceedings: The Company is subject to various legal actions, including product liability, warranty, class actions (e.g., emissions, transmissions, airbags), governmental investigations, and environmental proceedings, which could result in substantial damages, fines, or reputational harm.

Geopolitical & External Risks

Geopolitical Exposure: International operations expose General Motors Company to political, economic, and regulatory risks, including changes in government leadership, trade policies, political instability, and economic tensions between governments (e.g., U.S.-China trade tensions). Trade Relations: The dynamic global tariff environment, including new or existing import tariffs and trade agreements, could materially adversely affect financial condition and results. Sanctions & Export Controls: Compliance with U.S. and foreign export controls, economic sanctions, and import controls can limit business activities.

Innovation & Technology Leadership

Research & Development Focus: General Motors Company's research and development efforts are concentrated on developing new products and services, improving existing offerings, and advancing technologies related to vehicle and greenhouse gas emissions control, improved fuel economy, electric vehicles, advanced driver assistance systems, and driver/passenger safety. The Company leverages software, hardware, artificial intelligence, and sensors to create safer, smarter, and more fuel-efficient vehicles. The innovation pipeline includes an end-to-end, integrated product and software ecosystem for advanced driver assistance and autonomy, connected vehicle platforms, and the evolution of OnStar into an intelligent, always-on services layer. Core Technology Areas: Electric vehicles, advanced driver assistance systems, autonomous vehicle technology, software-defined vehicles, and connected services. Innovation Pipeline: Development of new battery chemistries and form factors for electric vehicles, and continuous improvement of customer experience through software, AI, and vehicle platforms. R&D Expenditure: $8.5 billion in 2025.

Intellectual Property Portfolio: General Motors Company holds a significant number of patents, copyrights, trade secrets, and trademarks globally, which are crucial for its operations and technological development. While no single piece of intellectual property is individually material, the collective portfolio is vital for identity and market recognition. The Company actively manages its patent strategy and defends against infringement claims.

Technology Partnerships:

• Strategic Alliances: A key partnership is Ultium Cells Holdings LLC, a joint venture with LG Energy Solution, for battery cell production.
• Research Collaborations: The Company engages in strategic sourcing initiatives and multi-year supply agreements with raw material suppliers to secure critical materials for electric vehicle production.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Executive officers are elected by the Board of Directors to hold office until a successor is elected or until earlier resignation or removal.

Board Composition: The Board of Directors oversees enterprise risk and has established a Risk and Cybersecurity Committee with specific responsibility for overseeing the Company's cybersecurity program.

Human Capital Strategy

Workforce Composition: As of December 31, 2025, General Motors Company employed approximately 155,000 individuals worldwide, comprising 88,000 (56%) hourly employees and 68,000 (44%) salaried employees. In the U.S., substantially all hourly employees (approximately 47,000) are union-represented, primarily by the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America. The workforce is distributed across GM North America (119,000), GM International (28,000), and General Motors Financial Company, Inc. (9,000).

Talent Management: Acquisition & Retention: General Motors Company aims to be a "Workplace of Choice" to attract, retain, motivate, and develop top talent, particularly in highly technical software and hardware roles. The Company offers a comprehensive and competitive Total Rewards package, including compensation, 401(k) contributions, paid time off, health care plans, and vehicle savings. Development Programs: Extensive career development resources are provided, including functional curricula, continuing education programs (e.g., Technical Education Program), the GM Technical Learning University for technical upskilling, and leadership development programs. Culture & Engagement: The Company's culture is built on values such as Customers, Excellence, Relationships, and Truth, and eight core behaviors. A strong commitment to safety is fostered through initiatives like "Speak Up for Safety" and the Employee Safety Concern Process.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: General Motors Company's vision includes a world with zero emissions. The Company is impacted by evolving global regulations, such as the EU's Euro 7 emissions standards for internal combustion engine vehicles, aiming for a 90% reduction in CO2 tailpipe emissions by 2035, and new restrictions on non-tailpipe emissions. The EU Battery Regulation also influences electric vehicle battery design, use, and recyclability. Emissions Targets: The Company's long-term vision is for zero emissions.

Supply Chain Sustainability: General Motors Company is focused on developing a more resilient, scalable, and sustainable North America-focused supply chain, which includes responsible sourcing practices.

Social Impact Initiatives: Product Impact: General Motors Company's vision extends to a world with zero crashes and zero congestion, driven by the development of advanced driver assistance and autonomous vehicle technology to enhance safety and mobility. Connected vehicle services like OnStar also contribute to social impact.

Business Cyclicality & Seasonality

Demand Patterns: The market for vehicles is cyclical, heavily dependent on general economic conditions, credit availability, and consumer spending. Small changes in sales volume can have a disproportionately large effect on profitability due to a high proportion of fixed structural costs. Vehicle markets also exhibit seasonality, with production varying monthly due to model changeovers and new market entries. Economic Sensitivity: The Company's profitability is sensitive to economic downturns, inflation, interest rates, and fuel prices.

Planning & Forecasting: General Motors Company regularly evaluates its product plans and strategies to comply with evolving fuel economy and greenhouse gas regulations and has reassessed its electric vehicle capacity and manufacturing footprint to align with expected consumer demand.

Regulatory Environment & Compliance

Regulatory Framework: General Motors Company's operations and products are subject to extensive and evolving laws and regulations globally. Industry-Specific Regulations:

• Automotive Emissions: Stringent non-GHG emissions standards (exhaust, evaporative, OBD) are imposed by the U.S. EPA, California Air Resources Board (CARB), Canadian federal government, China (China 6b implemented July 2023), Brazil (L7 and L8 standards), and the EU (Euro 7).
• Fuel Economy & GHG Emissions: Regulations include U.S. CAFE standards (NHTSA), GHG emission standards (EPA), CARB's light-duty vehicle GHG standards and Advanced Clean Cars II (ACC II) program (100% ZEV target by 2035), Canada's Electric Vehicle Availability Standard (EVAS), China's corporate average fuel consumption (CAFC) and New Energy Vehicle (NEV) mandates, Brazil's MOVER Program, and Mexico's GHG regulations. Compliance costs were $0.9 billion in 2025, and the Company paid $0.4 billion for credits.
• Vehicle Safety: Regulated by the U.S. National Traffic and Motor Vehicle Safety Act of 1966 (Safety Act) and international standards (e.g., UNECE regulations in Europe). Compliance is costly and complex, with potential for recalls and civil/criminal penalties.
• Chemical Regulations: Global treaties (e.g., Basel, Rotterdam, Stockholm, Minamata Conventions) and regional regulations (e.g., EU REACH, U.S. TSCA, PFAS reporting, Canada's Chemical Management Plan) impact chemical selection and use, increasing costs and supply chain complexity.
• Data Privacy: Subject to complex and punitive regulations globally, including California Consumer Privacy Act, EU General Data Protection Regulation, EU Artificial Intelligence Act, and U.K. Data Protection Act of 2018, requiring significant safeguards for personal information.

Trade & Export Controls: The Company is exposed to import/export restrictions and tariffs, particularly concerning electric vehicle battery raw materials concentrated in China. Compliance with U.S. and foreign export controls, economic sanctions, and foreign investment measures is required.

Legal Proceedings: General Motors Company is involved in various material legal actions and governmental investigations.

• Environmental: Incurred $18.2 million in civil penalties as of December 31, 2025, for potential Toxic Substances Control Act violations at Ultium Cells LLC.
• Opel/Vauxhall Sale: Indemnifies Stellantis N.V. for certain losses, including emissions claims, product liabilities, and Takata recalls related to vehicles sold before the 2017 sale of the Opel/Vauxhall Business.
• Emissions Class Actions: Facing putative class actions in the U.S. and Canada alleging certain Duramax Diesel Chevrolet Silverado and GMC Sierra vehicles violate emissions standards.
• Transmission Class Actions: Subject to class actions in the U.S. and Canada regarding alleged defects in 8-speed transmissions in 2015–2022 model year vehicles.
• Takata Matters: Remaining accrual of $0.4 billion as of December 31, 2025, for the NHTSA-directed recall of Takata airbag inflators in GMT900 vehicles. Also facing putative class actions in the U.S. and Canada.
• ARC Matters: Initiated a voluntary recall for certain 2014–2017 Buick Enclave, Chevrolet Traverse, and GMC Acadia SUVs with ARC Automotive, Inc. airbag inflators. NHTSA has issued an Initial Decision for a broader recall of ARC inflators. Putative class actions are pending in the U.S., Canada, and Israel.
• Chevrolet Bolt Recall: Accrued $2.7 billion and recognized $1.7 billion in receivables from LG Electronics, Inc. and LG Energy Solution as of December 31, 2025, for the recall of 2017–2022 Chevrolet Bolt EV and EUV models due to battery defects. Remaining accrual of $0.3 billion.
• Privacy and Consumer Protection: Accrued $0.5 billion as of December 31, 2025, for class actions and governmental investigations related to privacy and consumer protection laws concerning the former OnStar Smart Driver product.

Tax Strategy & Considerations

Tax Profile: General Motors Company's effective tax rate was 10.8% in 2025, with an effective tax rate-adjusted of 18.9%. The Company anticipates an effective tax rate-adjusted between 20% and 21% for 2026. Geographic Tax Planning: Provisions are made for U.S. and non-U.S. income taxes on the reversal of basis differences in foreign subsidiaries and corporate joint ventures not deemed indefinitely reinvested. Indefinitely reinvested basis differences related to non-consolidated China Joint Ventures were $1.4 billion at December 31, 2025. Tax Reform Impact: The One Big Beautiful Bill Act, signed in July 2025, extends and modifies provisions of the U.S. Tax Cuts and Jobs Act of 2017, alters Inflation Reduction Act incentives, accelerates clean vehicle credit phase-outs, and sets CAFE civil penalties to zero for non-finalized model years. It also introduces a new auto loan interest deductibility provision for U.S.-assembled personal vehicles purchased between 2025 and 2028. Deferred Tax Assets: Valuation allowances against deferred tax assets totaled $6.8 billion at December 31, 2025, primarily in Germany, Spain, the U.S., and Brazil.

Insurance & Risk Transfer

Risk Management Framework: General Motors Company's financial risk management program, overseen by the Chief Financial Officer and the Financial Risk Council, aims to mitigate exposure to foreign currency exchange rate risk, interest rate risk, and commodity risk. The Company utilizes derivative instruments such as foreign currency forwards, swaps, and options to hedge forecasted revenues, costs, and commitments. Interest rate swaps are used to manage interest rate exposures, and commodity forwards, swaps, and options hedge forecasted commodity purchases (e.g., steel, copper, aluminum, palladium, lithium, nickel). Cybersecurity insurance is maintained as part of the Company's safeguards.