Is GM (General Motors Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, GM is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 169.12% exceeds the ≤33% threshold. Its cash & securities ratio of 35.92% exceeds the ≤33% threshold.

General Motors is one of the world's largest automakers, designing and manufacturing vehicles under iconic brands such as Chevrolet, Cadillac, GMC, and Buick. Beyond traditional internal combustion engines, the company is heavily investing in the electric vehicle transition through its Ultium battery platform and operates the autonomous driving subsidiary, Cruise. With a massive global footprint, GM serves retail customers and fleet buyers across North America, China, and international markets. For Muslim investors, however, General Motors is currently classified as Not Halal (H aram) based on AAOIFI screening standards. Although the core business of selling cars is permissible, the company failed two critical financial screens : its interest-bearing debt and its liquidity levels. This means that despite the halal nature of its products, the company 's financial structure is too heavily reliant on interest-based leverage to be considered compliant. From a financial perspective, the primary concern is the debt-to-market-cap ratio, which sits at a staggering 169.1%, far exceeding the 33% limit set by Shariah scholars. Additionally, the cash and interest-bearing securities ratio is 35.9%, slightly breaching the 33% threshold. These figures indicate a capital structure deeply entangled with interest (riba), which is a major red flag for Islamic investing principles. Investors should note that automotive companies often carry significant debt due to their financing arms (like GM Financial), which issue loans to customers. This structural reality often makes legacy automakers difficult to include in halal portfolios unless they have exceptionally high market capitalizations to dilute these ratios. Until GM significantly reduces its leverage or alters its capital structure, it remains off-limits for strict Shariah-compliant portfolios. General Motors Company operates in the Consumer Cyclical sector under the Auto - Manufacturers industry and is headquartered in Detroit, MI, US. The company is led by CEO Mary T. Barra and employs approximately 162,000 people.

GM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. GM passed 2 of these 4 screens.

GM was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.