In December 2024, GM announced it would no longer fund Cruise's robotaxi development, initiating a wind-down in February 2025 and reallocating $571 million of Cruise goodwill to the GMNA Automotive segment. This strategic pivot focuses on integrating Cruise's technical efforts into GMNA to prioritize advanced driver-assistance systems (ADAS) for personal vehicles.

GM plans capital expenditures of $10.0 billion to $11.0 billion in 2025, with a substantial portion dedicated to battery cell manufacturing joint ventures, including a $1.8 billion loan to Ultium Cells LLC in May 2025. This commitment underscores the company's focus on scaling its EV portfolio to improve profitability and meet demand.

Contract liabilities, primarily related to vehicle connectivity and extended warranties, increased to $7.7 billion at June 30, 2025, from $6.6 billion at December 31, 2024. The company expects to recognize $1.3 billion of this as revenue in the second half of 2025, indicating a strong pipeline for future service-based income.

Automotive and other selling, general and administrative expense decreased by 9.8% to $2,139 million for the three months ended June 30, 2025. This reduction was primarily driven by a $0.3 billion decrease in administrative costs and the absence of $0.2 billion in charges related to strategic activities to transition certain Buick dealerships, reflecting effective cost management.

Management is actively taking actions to mitigate the estimated $4.0 billion to $5.0 billion impact of new U.S. tariffs on 2025 EBIT-adjusted results, including plans to increase U.S. vehicle and engine production. The company has also resolved a Federal Trade Commission investigation related to privacy matters via an agreed administrative consent order.

While management prioritizes driving down costs and building scale in the EV portfolio to improve profitability, unfavorable net realizable value inventory adjustments, primarily EV-related, of $0.3 billion in Q2 2025 suggest ongoing challenges in EV production or demand. Additionally, Ultium Cells Holdings LLC incurred $260 million in strategic realignment charges.

The U.S. Government's introduction of new tariffs, specifically related to the automotive industry, is expected to have a material adverse effect, with an estimated $4.0 billion to $5.0 billion impact on the company's 2025 EBIT-adjusted results. Management does not expect mitigation actions to fully offset this impact in the near term.

Product warranty expense, net of recoveries, increased by 20.1% to $1,969 million for the three months ended June 30, 2025, compared to $1,639 million in the prior year. The company faces ongoing class actions related to airbag defects (Takata, ARC) and vehicle issues (Chevrolet Bolt EV batteries, Duramax Diesel emissions, 8-speed transmissions), with remaining accruals of $402 million for Takata and $0.3 billion for Bolt EV, with potential for materially higher actual costs.

The recently signed 'One Big Beautiful Bill Act' sets civil penalties for noncompliance with CAFE standards to zero, which is favorable. However, the Act also introduces a new auto loan interest deductibility provision that could adversely affect EV profitability, and the overall financial impacts of the Act are currently unable to be estimated but could be material.

GMNA increased its U.S. market share by 1.2 percentage points to 17.3% for the six months ended June 30, 2025, compared to 16.1% in the prior year period. This gain occurred even as total wholesale vehicle sales decreased by 1.1% to 1,885 thousand units for the six months ended June 30, 2025.

The company's financial performance continues to be driven by the strength of its vehicle portfolio, including high-margin full-size pickup trucks and SUVs. This strong performance in core internal combustion engine (ICE) segments provides a stable foundation to fund investments in EVs and other new business opportunities.

GMI's total vehicle sales in China increased by 0.1 percentage points to 7.2% market share for the six months ended June 30, 2025, reflecting 7.5% industry sales growth. However, market share outside of China decreased by 0.3 percentage points to 3.1%, indicating varying competitive dynamics across international regions.

Total automotive and other cost of sales increased by $674 million (1.7%) for the three months ended June 30, 2025, primarily due to a $1.4 billion increase in material and freight costs, with $1.1 billion attributed to tariffs. This indicates pressure on the company's cost structure from external factors.

Unfavorable net realizable value inventory adjustments, primarily EV-related, contributed $0.3 billion to increased costs in the three months ended June 30, 2025. This, coupled with an increase in EV-related inventory allowances from $1.4 billion to $1.9 billion, suggests potential inefficiencies or slower-than-expected demand in the EV segment.

Engineering costs decreased by $0.4 billion for the three months ended June 30, 2025, primarily due to the wind-down of Cruise robotaxi operations. This cost reduction reflects management's efforts to streamline operations and reallocate resources following the strategic shift in autonomous vehicle development.

The company plans significant capital expenditures of $10.0 billion to $11.0 billion in 2025, with a primary focus on investments in battery cell manufacturing joint ventures. This includes a $1.8 billion loan to Ultium Cells LLC in May 2025, underscoring the commitment to EV production capabilities.

GM is winding down its Cruise robotaxi development and combining its technical efforts with GM's existing ADAS initiatives within the GMNA Automotive segment. This strategic realignment, which included a $571 million goodwill reallocation, aims to accelerate the development of advanced driver-assistance systems for personal vehicles.

As part of its growth-focused strategy, GM continues to invest in software-enabled services and subscriptions worldwide. This aligns with the company's vision for 'zero congestion' and aims to enhance customer experiences and generate new revenue streams.

The Board of Directors increased the existing share repurchase program capacity by $6.0 billion to an aggregate of $6.3 billion in February 2025 and approved a $2.0 billion accelerated share repurchase (ASR) program. This resulted in the retirement of approximately 43 million shares in the six months ended June 30, 2025, reflecting management's belief in the company's value.

The quarterly common stock dividend was increased by $0.03 to $0.15 per share, effective April 2025. The company paid $0.3 billion in dividends to common stockholders in the six months ended June 30, 2025, indicating a strong commitment to returning capital to shareholders.

ROIC-adjusted for the trailing four quarters ended June 30, 2025, improved slightly to 19.0% from 18.5% in the prior year, nearing the management's target of 20% or greater. This indicates progress in efficient capital deployment, even as overall net income and operating income faced significant declines.

The 'One Big Beautiful Bill Act,' signed in July 2025, sets civil penalties for noncompliance with Corporate Average Fuel Economy (CAFE) standards to zero, which supports the company's 'zero emissions' vision. However, the Act's new auto loan interest deductibility provision could adversely affect EV profitability, creating a mixed outlook for environmental targets.

The company continues to execute various restructuring and other initiatives to streamline manufacturing capacity and reduce costs, including potential voluntary separations. For example, $254 million in remaining cash outflows related to the Buick dealership strategic restructuring are expected by the end of 2025, indicating continued operational adjustments.

GM resolved a Federal Trade Commission investigation related to consumer data privacy through an agreed administrative consent order. This demonstrates the company's commitment to addressing regulatory concerns and maintaining responsible data collection and use practices, which is crucial for social responsibility and consumer trust.

The U.S. Government's new tariffs on the automotive industry are projected to impact 2025 EBIT-adjusted results by $4.0 billion to $5.0 billion, a material adverse effect. This highlights a significant macroeconomic and geopolitical risk that the company anticipates will not be fully offset by mitigation strategies in the near term.

Despite various challenges, the company reports strong consumer demand for its products, particularly high-margin full-size pickup trucks and SUVs. U.S. industry sales increased by 3.8% for the six months ended June 30, 2025, to 8.3 million units, indicating a resilient market environment for core products.

The 'One Big Beautiful Bill Act' setting civil penalties for CAFE standards to zero is a favorable regulatory change, but new auto loan interest deductibility provisions could affect EV profitability. This dynamic regulatory environment requires continuous adaptation and could influence future product strategies and financial outcomes.