01—Abstract
Summary
Summary of the 10-K filed February 2, 2022. Cited figures are marked; the original filing is the authoritative source.
General Motors Co. (GM) reported its 2021 annual results, showcasing a significant increase in profitability and strategic advancements, particularly in its electric vehicle (EV) and autonomous vehicle (AV) initiatives.
Despite facing headwinds such as the global semiconductor shortage, GM managed to navigate these challenges by prioritizing production of its most in-demand vehicles, including trucks and SUVs. The company's commitment to an all-electric future is evident through substantial investments in EV technology and a clear roadmap for launching numerous new EV models by 2025. Financially, GM demonstrated resilience with strong operational performance, supported by favorable pricing and mix, which offset increased material and logistics costs.
The company's financial arm, GM Financial, also performed well, benefiting from higher used vehicle prices which led to significant gains on lease terminations. Looking ahead, GM remains focused on executing its EV and AV strategies, aiming to be carbon neutral by 2040, and is positioning itself for long-term growth in these transformative areas of the automotive industry.
02—Key points
Key Highlights
- GM reported strong financial results for 2021, with significant year-over-year improvements, driven by favorable pricing and vehicle mix, despite ongoing semiconductor supply constraints.
- The company is aggressively investing in its electric vehicle (EV) and autonomous vehicle (AV) strategy, with a commitment of over $35 billion through 2025, aiming to launch more than 30 new EV models globally.
- GM's manufacturing capabilities for EVs are being enhanced with the retooling of facilities like Factory ZERO and the expansion of battery cell production through Ultium Cells LLC.
- GM Financial, the company's financing arm, experienced strong performance, with increased earnings before taxes (EBT)-adjusted driven by favorable used vehicle prices and reduced provision for loan losses.
- OnStar and connected services continue to be a significant revenue stream, with a growing base of connected vehicles and plans to roll out 5G connectivity.
- The company is focused on expanding its advanced driver-assistance systems, with Super Cruise available on more models and plans for the next-generation Ultra Cruise.
- Despite production interruptions due to the semiconductor shortage, GM expects the supply situation to improve in 2022 and maintains its long-term growth outlook for EV initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, General Motors Co kept $0.08.
- Revenue$127.00B100.0%
- Cost of revenue−$100.54B79.2%
- Gross profit$26.46B20.8%
- Operating costs−$17.14B13.5%
- Operating income$9.32B7.3%
- Interest, other & tax$621.0M0.5%
- Net income$9.95B7.8%
Where FY2021 revenue went
$127.00B- Cost of revenue: $100.54B, 79% of revenue
- Operating income: $9.32B, 7.3% of revenue
- SG&A: $8.55B, 6.7% of revenue
- Other operating costs: $8.58B, 6.8% of revenue
Kept 7.3% as operating incomeOperating income $9.32B · 7.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 2, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $127.00B$122.48B | +3.7% |
| Cost of Revenue | $100.54B$97.54B | +3.1% |
| Gross Profit | $26.46B$24.95B | +6.1% |
| SG&A Expenses | $8.55B$7.04B | +21.5% |
| Operating Expenses | $117.68B$115.85B | +1.6% |
| Operating Income | $9.32B$6.63B | +40.5% |
| Net Income | $9.95B$6.43B | +54.7% |
| EPS (Basic) | $6.78$4.36 | +55.5% |
| EPS (Diluted) | $6.70$4.33 | +54.7% |
| Shares Outstanding (Basic) | 1.45B1.43B | +1.3% |
| Shares Outstanding (Diluted) | 1.47B1.44B | +1.8% |
05—Questions
Frequently Asked Questions
What is General Motors' strategic focus for the future?
General Motors' strategic focus is on transitioning to an all-electric future, with a vision of zero crashes, zero emissions, and zero congestion. This involves significant investments in electric vehicles (EVs), autonomous vehicles (AVs), software-enabled services, and new business opportunities, while continuing to strengthen its position in profitable internal combustion engine (ICE) vehicles.
How did the semiconductor shortage impact GM's operations in 2021?
The global semiconductor shortage led to production interruptions and temporary suspensions of certain manufacturing sites. GM prioritized production of its most popular and in-demand vehicles, including full-size trucks and SUVs, and manufactured vehicles without certain components, resulting in a $0.6 billion inventory carrying value at the end of 2021, which it expects to complete and sell in the first half of 2022.
What is GM's approach to electric vehicle (EV) production and battery technology?
GM's EV strategy is centered around its Ultium battery platform, which is flexible and scalable across various vehicle types. The company is investing heavily in battery cell production through its joint venture, Ultium Cells LLC, with planned plants in Ohio, Tennessee, and Michigan. GM also began production at its dedicated EV facility, Factory ZERO, and is converting other plants for EV production, aiming to launch over 30 EV models globally by 2025.
How is GM Financial performing?
GM Financial demonstrated strong performance in 2021, with a significant increase in EBT-adjusted. This was driven by favorable used vehicle prices, which boosted gains on lease terminations, and a lower provision for loan losses due to improved credit performance and economic conditions. The company's penetration of GM's U.S. retail sales remained strong at 44%.
06—Continue