Is General Motors Stock Halal?
General Motors Company · GM · NYSE
General Motors Company (GM) does not pass Shariah screening: interest-bearing debt / market cap is 175.9% against the < 30% limit (data as of 2026-03-31), and cash + interest-bearing securities / market cap is 33.6% against the < 30% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
General Motors tells the same story as Ford. Building vehicles is permissible, but GM owns GM Financial, a full conventional auto lender that earns interest on car loans, leases, and dealer financing. In FY2025 GM Financial produced $17,048 million of revenue, roughly 9.2% of GM's $185,019 million total, an even larger finance share than Ford's. That comfortably exceeds the approximately 5% impermissible-revenue ceiling used in AAOIFI-style screens.
As with any automaker that owns a captive bank, the debt side compounds the problem. GM Financial funds its loan and lease book with substantial interest-bearing borrowings, so GM tends to fail the interest-bearing-debt ratio tests that Shariah screens apply in addition to the revenue test. The result is that GM, like Ford, is a consistent screening failure despite a permissible manufacturing core.
GM is not held by SPUS (checked June 11, 2026) or HLAL (SEC-filed holdings, February 28, 2026). A Muslim investor attracted to the auto sector should understand that the financing arm is the disqualifier, and that pure-play suppliers or manufacturers without large captive lenders are more likely to pass. Always confirm with a current screener, since the exact ratios shift each period.
Business Activity Screen
General Motors designs, manufactures, and sells trucks, SUVs, cars, and automobile parts globally, and operates GM Financial, its wholly owned captive auto-finance subsidiary. Per its FY2025 10-K, total net sales and revenue were $185,019 million, of which automotive revenue was approximately $167,971 million (US $138,108 million and non-US $29,863 million) and GM Financial generated $17,048 million.
GM Financial is a conventional captive finance business that earns interest on retail auto loans, leases, and dealer commercial lending. Per the FY2025 10-K geographic/segment disclosure, GM Financial revenue was $17,048 million, approximately 9.2% of GM's $185,019 million total net sales and revenue, up from $15,836 million in 2024. This interest-based finance segment, together with the large interest-bearing debt that funds its receivables portfolio, is the principal reason GM commonly fails Shariah business and financial-ratio screens (its finance-revenue share is well above the roughly 5% impermissible-income tolerance). The underlying vehicle-manufacturing business is a permissible activity.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 175.9% | < 30% | Fail |
| Cash + interest-bearing securities / market cap | 33.6% | < 30% | Fail |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 0.5% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How General Motors screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 175.9% | 33.6% | < 30% of market cap | Fail |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 175.9% | 33.6% | < 33% of market cap | Fail |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 45.5% | 8.7% | < 33.33% of total assets | Fail |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether General Motors Company is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- GM latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- GM FY2025 10-K GM Financial revenue / segment geographic detail (SEC EDGAR XBRL)
- GM FY2025 10-K (SEC EDGAR primary document)
- SPUS holdings (SP Funds)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR)
- HalalWallet Methodology
- Editorial Policy
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Editorial Team, HalalWallet
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