Q : How is GM planning to adjust its strategy in response to potential changes in EV policy under the new administration? A : Mary Barra, CEO, stated that GM will continue to be guided by consumer demand for EVs and ICE vehicles. The company will make capital allocation decisions accordingly, as seen with past decisions like the Orion plant. GM remains committed to efficiently deploying capital across both EV and ICE portfolios.

Q : Can you elaborate on the factors affecting GM's margin performance in the fourth quarter and the outlook for 2025? A : Paul Jacobson noted that fourth-quarter margins were impacted by specific issues like legal settlements and warranty pressures, which accounted for over one percentage point of margin impact. Despite these, GM's North American margin was strong at 9.2% for the year. The company expects to maintain its 8% to 10% margin target in 2025.

Q : How does GM plan to handle potential tariff impacts on its production footprint, especially for full-size vehicles? A : Mary Barra highlighted GM's flexibility in its production footprint, with the ability to shift production between the U.S., Mexico, and Canada. The company is planning for various scenarios to mitigate tariff impacts and is encouraged by ongoing discussions between the U.S. and Mexico to avoid tariffs.

Q : What are GM's expectations for EV profitability improvements in 2025, and how might policy changes affect this? A : Paul Jacobson stated that GM expects EV profitability improvements at the low end of the $2 billion to $4 billion EBIT target, driven by scale and cost reductions. The company is prepared for various policy scenarios and has multiple strategies to respond to potential changes, focusing on preserving American jobs and innovation.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .