Detroit, January 28, 2026
General Motors has announced that eligible hourly workers will receive profit-sharing checks of $10,500 for the 2025 performance year. This payout marks a 27% decrease from the previous year’s $14,500 due to factors such as declining electric vehicle sales and restructuring charges. Approximately 47,000 UAW-represented employees will benefit from this payment as GM looks towards a positive financial outlook for 2026, projecting a net income of between $10.3 billion and $11.7 billion.
Detroit, Michigan – GM Workers to Receive $10,500 in Profit-Sharing Checks
General Motors (GM) has announced that eligible hourly workers will receive profit-sharing checks of $10,500 for the 2025 performance year, a 27% decrease from the previous year’s record payout of $14,500.
Financial Performance and Profit-Sharing Calculation
The profit-sharing amount is determined by a formula agreed upon with the United Auto Workers (UAW), allocating $1,000 for every $1 billion in North American pretax profits. In 2025, GM’s North American pretax profit was $10.4 billion, resulting in a profit-sharing payment of $10,500 per eligible worker. Approximately 47,000 UAW-represented employees are set to receive these payments. This marks a return to a payout near the 2021 level of $10,250, following a peak of $14,500 in 2024.
Factors Influencing the Profit-Sharing Reduction
The reduction in profit-sharing payments is attributed to several factors:
- Decline in Electric Vehicle (EV) Sales: The expiration of federal tax credits for EV purchases led to a significant drop in EV sales, impacting GM’s profitability.
- Special Charges: The fourth quarter of 2025 saw a net income loss of $3.3 billion, primarily due to over $7.2 billion in special charges related to restructuring and realigning capacity in response to changing consumer demand and government policies.
GM’s Financial Outlook for 2026
Despite the challenges faced in 2025, GM remains optimistic about its financial performance in 2026. The company anticipates a net income of $10.3 billion to $11.7 billion and adjusted earnings before interest and taxes (EBIT) of $13 billion to $15 billion. This positive outlook is supported by strong sales of high-margin vehicles and strategic investments in gasoline-powered models.
Context on Profit-Sharing Trends
Profit-sharing payments are a common practice in the automotive industry, serving as a direct link between company performance and employee compensation. The recent reduction in GM’s profit-sharing checks reflects broader industry challenges, including shifts in consumer preferences and economic conditions. For comparison, Stellantis announced a 73% decrease in profit-sharing checks for its UAW employees in 2025, highlighting the financial pressures faced by automakers.
Frequently Asked Questions (FAQ)
What is the amount of the profit-sharing checks GM workers will receive?
Eligible hourly workers at General Motors will receive profit-sharing checks of $10,500 for the 2025 performance year, a 27% decrease from the previous year’s record payout of $14,500.
How is the profit-sharing amount determined?
The profit-sharing amount is calculated based on a formula agreed upon with the United Auto Workers (UAW), allocating $1,000 for every $1 billion in North American pretax profits. In 2025, GM’s North American pretax profit was $10.4 billion, resulting in a profit-sharing payment of $10,500 per eligible worker.
What factors contributed to the reduction in profit-sharing payments?
The reduction in profit-sharing payments is attributed to several factors, including a decline in electric vehicle (EV) sales due to the expiration of federal tax credits, and special charges in the fourth quarter of 2025 related to restructuring and realigning capacity in response to changing consumer demand and government policies.
What is GM’s financial outlook for 2026?
GM anticipates a net income of $10.3 billion to $11.7 billion and adjusted earnings before interest and taxes (EBIT) of $13 billion to $15 billion in 2026, supported by strong sales of high-margin vehicles and strategic investments in gasoline-powered models.
How does GM’s profit-sharing compare to other automakers?
Profit-sharing payments are a common practice in the automotive industry. For comparison, Stellantis announced a 73% decrease in profit-sharing checks for its UAW employees in 2025, highlighting the financial pressures faced by automakers.
Key Features of GM’s Profit-Sharing Announcement
| Feature | Details |
|---|---|
| Profit-Sharing Amount | $10,500 per eligible worker for 2025 |
| Percentage Decrease | 27% decrease from 2024’s $14,500 |
| Number of Eligible Workers | Approximately 47,000 UAW-represented employees |
| Calculation Formula | $1,000 per $1 billion in North American pretax profits |
| 2025 North American Pretax Profit | $10.4 billion |
| Factors Influencing Reduction | Decline in EV sales, special charges in Q4 2025 |
| GM’s 2026 Financial Outlook | Net income of $10.3 billion to $11.7 billion, adjusted EBIT of $13 billion to $15 billion |
| Industry Comparison | Stellantis announced a 73% decrease in profit-sharing checks for its UAW employees in 2025 |
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