More than 47,000 hourly workers at General Motors Co. will get profit-sharing payments of $10,500 for 2025 as the automaker posted full-year earnings of $2.7 billion despite sliding to a $3.3 billion fourth-quarter loss, according to financial data released Tuesday.
For every $1 billion GM makes in North America, the automaker’s hourly U.S. employees receive $1,000, according to the Detroit automaker’s agreement with the United Auto Workers. The company posted $12.7 billion in EBIT-adjusted earnings for the year.
The payments are down compared to last year, when GM doled out record payouts of up to $14,500.
This year’s payouts are thanks to the profits the automaker booked last year despite uncertainty and costs related to tariffs, as well as the Trump administration’s shift away from policies aimed at supporting the still-developing electric vehicle market.
GM’s 2025 impairment charges include a roughly $4.6 billion cash impact, which covers fees for broken contracts and settlements with suppliers who had planned on helping the automaker meet ambitious electrification goals.
The company wrote off another $3 billion spent on machinery and other equipment for EV production.
CEO Mary Barra attributed the company’s profitability, despite those headwinds, to its money making gas-powered truck and SUV lineup. GM last year grabbed up a greater portion of the U.S. auto market, where the automaker is also most profitable.
Focusing too much on short-term gains in the U.S. market with trucks and SUVs also brings the risk of falling behind globally, where analysts still predict EVs will be the future.
GM executives have said the plan is to develop EV and self-driving technology as the company waits for U.S. consumer interest to pick up speed. A top priority for GM is producing lower-cost lithium-ion-phosphate batteries to bring down the price tags on EVs.
GM upped its per-share dividend by three cents and will pay a quarterly cash dividend of $0.18 per share on March 19 to holders of common stock at the close of trading on March 6. The company also said the board of directors approved a $6 billion share repurchase authorization.
