General Motors (GM) risk factors, FY2024 10-K

Risks related to our competition and strategy

1. 01If we do not deliver new products, services, technologies and customer experiences in response to increased competition and changing consumer needs and preferences, our business could suffer
2. 02Our ability to attract and retain talented and highly skilled employees is critical to our success and competitiveness
3. 03Our ability to maintain profitability is dependent upon our ability to timely fund and introduce new and improved vehicle models, including EVs, that are able to attract a sufficient number of consumers
4. 04Our long-term strategy is dependent upon our ability to profitably deliver a strategic portfolio of EVs
5. 05The success of our long-term strategy is dependent on consumer adoption of EVs
6. 06Our near-term profitability is dependent upon the success of our current line of ICE vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks
7. 07We operate in a highly competitive industry that has historically had excess manufacturing capacity, and attempts by our competitors to sell more vehicles could have a significant negative effect on our vehicle pricing, market share and operating results
8. 08We recently announced plans to refocus our AV strategy on personal vehicles and the execution of this strategy is dependent upon our ability to successfully mitigate unique technological, operational and regulatory risks
9. 09We are subject to risks associated with climate change, including increased regulation of GHG emissions, changing consumer preferences and other risks related to our transition to EVs and the potential increased impacts of severe weather events on our operations and infrastructure

Risks related to our operations

1. 10Our business is highly dependent upon global automobile market sales volume, which can be volatile
2. 11Inflationary pressures and persistently high prices and uncertain availability of commodities, raw materials or other inputs used by us and our suppliers, or instability in logistics and related costs, could negatively impact our profitability
3. 12Our business in China subjects us to unique operational, competitive and regulatory risks
4. 13We benefit from many ongoing strategic business relationships, particularly with respect to facilitating access to raw materials necessary for the production of EVs, and a significant amount of our operations are conducted by joint ventures, which we cannot operate solely for our benefit
5. 14The international scale and footprint of our operations expose us to additional risks
6. 15Any significant disruption at one of our manufacturing facilities could disrupt our production schedule
7. 16Disruption in our suppliers’ operations have disrupted, and could in the future disrupt, our production schedule
8. 17Pandemics, epidemics, disease outbreaks and other public health crises have disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations

Risks related to our intellectual property, cybersecurity, information technology and data management practices

1. 18Competitors may independently develop products and services similar to ours, and there are no guarantees that GM’s intellectual property rights would prevent competitors from independently developing or selling those products and services
2. 19Security breaches, cyberattacks and other disruptions to information technology systems and networked products, including connected vehicles, owned or maintained by us, GM Financial, service providers, such as data processors, or third parties, such as vendors or suppliers, could interfere with our operations and could compromise the confidentiality of private customer data or our proprietary information
3. 20Security breaches and other disruptions of our in-vehicle systems could impact the safety of our customers and reduce confidence in GM and our products
4. 21Our enterprise data practices, including the collection, use, sharing and security of the personal or other information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions

Risks related to government regulations and litigation

1. 22Our operations and products are subject to extensive laws, regulations and policies, including those related to vehicle emissions and fuel economy standards, which can significantly increase our costs and affect how we do business
2. 23We could be materially adversely affected by unusual or significant litigation, governmental investigations or other proceedings
3. 24The costs and effect on our reputation of product safety recalls and alleged defects in products and services could materially adversely affect our business
4. 25We may incur additional tax expense or become subject to additional tax exposure

Risks related to Automotive Financing - GM Financial

1. 26We rely on GM Financial to provide financial services to our customers and dealers

Risks related to defined benefit pension plans

1. 27Our pension funding requirements could increase significantly due to a reduction in funded status as a result of a variety of factors, including weak performance of financial markets, declining interest rates, changes in the level of benefits provided for by the plans, changes in laws or regulations, or changes in assumptions or investments that do not achieve adequate returns