Ford Motor Company (F) and General Motors (GM) capped off 2024 with their strongest U.S. new vehicle sales since before the pandemic, highlighting the resilience of the automotive market amid challenges such as supply chain disruptions and economic uncertainties. Both companies reported year-over-year growth in total vehicle sales, electric vehicle (EV) adoption, and significant fourth-quarter performance.
Ford sold 2.08 million vehicles in 2024, marking a 4% increase from 2023 and the highest sales volume since 2019, when it sold 2.42 million vehicles. General Motors led the way, with 2.7 million vehicles sold last year, reflecting a similar 4% year-over-year rise and the best performance since its 2019 total of 2.89 million vehicles. Notably, GM’s fourth-quarter sales surged by an impressive 21%, while Ford’s rose 9%.
The year-end figures underscore a robust recovery in the automotive sector, buoyed by steady consumer demand and a growing appetite for electrified vehicles.
EV Sales Skyrocket as Consumers Shift to Sustainability
The drive toward sustainability played a significant role in the sales success of both companies. Ford reported a 38% increase in sales of hybrid, plug-in hybrid, and fully electric vehicles, totaling 285,291 units. This growth signals Ford’s growing dominance in the EV market, driven by models like the F-150 Lightning and Mustang Mach-E.
General Motors also made notable strides in the EV sector, with a 50% increase in electric vehicle sales, reaching 114,432 units. The automaker’s EV portfolio, bolstered by the Chevrolet Bolt and the Cadillac Lyriq, reflects its strategic push toward electrification. GM has set ambitious targets for EV adoption, with plans to expand its lineup to cater to a broader audience.
The remarkable growth in EV sales comes as both companies ramp up production to meet increasing consumer demand for environmentally friendly options and government incentives aimed at accelerating the transition to a greener future.
Stock Performance Diverges Despite Strong Sales
While the sales figures delivered good news for both automakers, their stock performances in 2024 told different stories. Shares of Ford rose 2.6% intraday on Friday, buoyed by the sales announcement. However, the company’s stock fell 19% over the course of the year, reflecting broader concerns about production costs and market competition.
In contrast, General Motors saw a more muted intraday stock gain of 0.6% on Friday, but its overall performance in 2024 was a bright spot, with a 48% increase in stock value. GM’s significant stock rally highlights investor confidence in its strategic direction, particularly its EV roadmap and robust fourth-quarter sales growth.
Outlook for 2025: Sustaining Momentum Amid Challenges
Looking ahead, Ford and GM are poised to continue leveraging their strengths in EV production and traditional vehicle offerings to capture market share. Both companies face challenges, including intensifying competition from established players like Tesla and new entrants in the EV space. Supply chain resilience, pricing strategies, and consumer adoption of emerging technologies will play pivotal roles in shaping their trajectories.
The 2024 sales success of Ford and GM underscores a pivotal year for the U.S. automotive industry, signaling strong consumer demand and a growing shift toward sustainable mobility solutions. As the new year unfolds, both automakers are well-positioned to capitalize on their momentum and drive further innovation in the market.
