How GM (General Motors Company) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a global automotive leader like GM makes money is essential for investors and anyone interested in the business of automotive manufacturing and mobility solutions. In this post, we break down GM's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick GM Overview

General Motors (GM) operates as a leading global automaker, designing, manufacturing, and selling vehicles and automotive parts under brands like Chevrolet, GMC, Cadillac, and Buick. Revenue comes primarily from vehicle sales, automotive financing, and aftersales services. GM also invests in electric vehicles (EVs), autonomous driving technology, and mobility solutions, though its core business remains traditional automotive manufacturing.

Revenue Breakdown

• Total Revenue (Q3 2025): $45.0B (−7.6% YoY)
  • Automotive Sales: $XXB (XX% of total) (segment data not disclosed in filing)
  • GM Financial (Auto Financing): $XXB (XX% of total) (segment data not disclosed in filing)
  • Growth is powered by EV adoption, North American truck/SUV demand, and expansion in mobility services, though overall revenue declined due to global market headwinds and supply chain challenges.

Gross Profit and Margins

• Gross Profit: $3.11B (6.9% gross margin)
  • Cost of Revenue: $41.9B (−1.0% YoY)
  • GM maintains moderate margins due to the capital-intensive nature of automotive manufacturing, competitive pricing, and ongoing investments in new technologies.
• Most costs come from vehicle production (materials, labor, logistics), warranty expenses, and supplier contracts.

Operating Income and Expenses

• Operating Income: $1.08B (−70.5% YoY, 2.4% margin)
• Operating Expenses: $2.04B (−25.8% YoY)
  • R&D: Not separately disclosed for Q3 2025
  • SG&A: $2.04B (−25.8% YoY, 4.5% of revenue) — includes corporate overhead, marketing, and administrative costs
  • GM continues to control costs and streamline operations while investing in electrification and autonomous vehicle development.

Net Income

• Pre-Tax Income: $1.42B (−61.8% YoY, 3.1% margin)
• Income Tax: $127M (8.9% effective tax rate)
• Net Income: $1.33B (−56.6% YoY, 2.9% net margin)
• GM converts a moderate portion of sales into profit due to the scale of its operations and ongoing cost discipline, despite industry headwinds.

What Drives GM's Money Machine?

• Automotive Sales: The main revenue driver, accounting for the vast majority of GM's income, comes from selling new vehicles globally.
• Vehicle Deliveries: GM's global vehicle sales volume and average selling price are key metrics, with North American trucks/SUVs providing higher margins.
• Strategic Investments: Heavy investment in electric vehicles, battery technology, and autonomous driving platforms positions GM for future growth.
• Future Growth Areas: EVs, autonomous mobility, and digital services are strategic priorities, though these segments are not yet major profit contributors.

Visualizing GM's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and production costs) taking the largest chunk.
• Even after significant investments and high production costs, only 2.9% of revenue drops to the bottom line.

Key Takeaways

• GM's money comes overwhelmingly from vehicle sales and automotive financing
• Moderate gross and net margins illustrate the challenges and scale of GM's manufacturing business model
• Heavy investment in electrification and autonomous technology, balanced by ongoing cost controls
• Ongoing growth is driven by EV adoption, North American demand, and mobility innovation

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FAQ About GM's Income Statement

1. What is the main source of GM's revenue in 2025?

GM generates over 90% of its revenue from automotive sales, including new vehicles, parts, and related services. Automotive financing through GM Financial is a secondary but important revenue source.

2. How profitable is GM in Q3 2025?

GM reported net income of $1.33B in Q3 2025, with a net margin of approximately 2.9%, reflecting moderate profitability driven by scale, cost controls, and ongoing investments.

3. What are the largest expense categories for GM?

The biggest expenses on GM's income statement are cost of revenue (vehicle production, materials, labor) and operating expenses, particularly Sales, General & Administrative (SG&A) costs, which totaled $2.04B in Q3 2025 as GM prioritizes operational efficiency and strategic investments.

4. Why does the EV/Autonomous segment operate at a loss?

GM's EV and autonomous vehicle divisions, despite generating growing revenue, posted operating losses in Q3 2025. This is because GM aggressively invests in battery technology, software development, and mobility platforms, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does GM's effective tax rate compare to previous years?

GM's effective tax rate in Q3 2025 was 8.9%, lower than historical averages. This moderate rate is primarily due to tax benefits from international structuring and credits related to R&D and electrification investments.