General Motors Co. — 2022 Form 10-K Summary
Reporting period: Fiscal year ended December 31, 2022. This is an annual filing; the supplied text does not provide standalone fourth-quarter results. GM designs, manufactures and sells vehicles and parts, provides connected services, operates autonomous-vehicle business Cruise, and offers financing through GM Financial.
Financial results and liquidity
| Metric | 2022 | 2021 | Change / context |
|---|---|---|---|
| Total net sales and revenue | $156.7bn | $127.0bn | Up 23.4% |
| Operating income | $10.3bn | $9.3bn | Up from $9.3bn |
| Net income attributable to stockholders | $9.9bn | $10.0bn | Down slightly |
| GAAP diluted EPS | $6.13 | $6.70 | Down 8.5% |
| Adjusted EBIT | $14.5bn | $14.3bn | Up modestly |
| Adjusted diluted EPS | $7.59 | $7.07 | Up 7.4% |
| Net cash from consolidated operating activities | $16.0bn | $15.2bn | Up $0.9bn |
Automotive operations generated $19.1bn of operating cash flow and spent $9.0bn on capital expenditures; management reported adjusted automotive free cash flow of approximately $10.5bn, including $0.4bn of adjustments for management actions. Automotive available liquidity was $39.5bn, including $24.4bn of cash and marketable securities and $15.1bn available under credit facilities. Consolidated cash and cash equivalents were $19.2bn and marketable debt securities were $12.2bn.
At year-end, automotive debt was $17.8bn and GM Financial debt was $96.9bn. GM Financial debt principally funds its finance receivables and lease assets. GM reported investment-grade corporate credit ratings and compliance with debt covenants. GM Financial available liquidity was $28.5bn.
Material changes versus 2021
- Revenue grew substantially, supported by higher wholesale volumes as parts availability improved, strong vehicle pricing and low dealer inventories. Wholesale vehicle sales rose 25% to 3.58 million.
- GMNA adjusted EBIT increased to $13.0bn, while its adjusted margin was 10.1%, slightly below 10.2% in 2021. GMI adjusted EBIT rose to $1.1bn; its China joint-venture equity income fell to $0.7bn from $1.1bn.
- GM Financial adjusted EBT declined to $4.1bn from $5.0bn, as revenue fell 4.9% and provision for loan losses increased to $654m from $248m. Lease termination gains were $1.2bn, down from $2.0bn.
- Cruise adjusted EBIT loss widened to $1.9bn from $1.2bn, reflecting higher development costs. Separately, a one-time Cruise equity-award modification generated $1.1bn of compensation expense excluded from adjusted EBIT.
- Reported GAAP EPS included a $909m deemed dividend associated with the redemption of Cruise preferred shares. Adjusted EPS also reflects specified exclusions and tax adjustments; it is a non-GAAP measure.
Outlook, commentary and risks
For 2023, GM forecast diluted EPS and adjusted diluted EPS of $6.00–$7.00, net income attributable to stockholders of $8.7–$10.1bn, adjusted EBIT of $10.5–$12.5bn, and an adjusted effective tax rate of 16%–18%. Management expected strong pricing, particularly for full-size trucks and SUVs, but anticipated incentives rising from unusually low 2022 levels. It also expected improved commodity and logistics costs, partly offset by costs to localize battery-material supply chains, and an approximately $1.0bn unfavorable impact from lower forecast pension income.
GM plans to build capacity for one million EVs annually in North America and more than two million globally by the end of 2025. It expects capital spending and investments in battery-cell joint ventures of $11–$13bn annually through 2025. These are forward-looking plans, not guaranteed outcomes. Other stated objectives include carbon neutrality by 2040 and eliminating tailpipe emissions from new U.S. light-duty vehicles by 2035.
- Operating and market risks: Semiconductor and other supply disruptions, inflation and commodity costs, fixed manufacturing and labor costs, economic slowdown, rising financing costs, and vehicle-price or incentive pressure.
- Transition and execution risks: EV demand, battery materials and cost, charging infrastructure, product launches, and Cruise’s commercialization, safety performance and regulatory approvals. Cruise’s Origin deployment remained subject to NHTSA approval.
- Geographic and labor risks: China competition and regulatory pressures; currency and geopolitical exposure; and expiring U.S., Canadian and Mexican collective bargaining agreements in 2023.
- Unusual items: GM recorded a $657m charge for exiting Russia, a $511m Buick dealer-strategy charge and the $1.1bn Cruise award-modification expense. GM expected additional Buick dealer optimization charges in 2023, with the amount dependent on negotiations.
- Contingencies: Litigation accruals were $1.1bn. GM disclosed reasonably possible indirect-tax losses above accruals of up to approximately $900m and an estimated $97m of possible loss beyond accruals for certain GM Korea wage claims. Other significant litigation exposures could not be reasonably estimated; adverse outcomes could exceed recorded accruals.
Most important facts for investors to verify
- Whether 2023 guidance was achieved, and how much earnings depended on pricing, production recovery and low incentives.
- Whether EV production, battery supply, cost reductions and consumer adoption are progressing toward the 2025 capacity targets.
- GM Financial credit quality, loan-loss provisions, funding costs and used-vehicle residual values as interest rates and vehicle markets change.
- Cruise cash use, safety and regulatory milestones, and the continuing effect of equity compensation and liquidity arrangements.
- Actual costs from labor negotiations, recalls, legal and tax matters, Russia-related claims, and planned capital and shareholder returns.
GM’s adjusted EBIT, adjusted EPS, adjusted ETR and adjusted automotive free cash flow are non-GAAP measures and should be considered alongside their GAAP counterparts.