General Motors’ second-quarter profit plummeted 35% due to a $1.1 billion tariff hit, but the automaker stuck by its full-year financial outlook and invested $4 billion in U.S. assembly plants to mitigate tariffs.
General Motors reported a 35% decline in Q2 profit, with earnings per share at $1.91, beating analyst expectations. The company took a $1.1 billion tariff hit, mainly due to new trade policies affecting the auto industry. Despite this, GM maintained its full-year financial forecast that was lowered in May.
CEO Mary Barra cited efforts to reduce tariff exposure and position the business for long-term profitability. She also expressed confidence in adapting to changing demand, prioritizing customers and brands, and leveraging domestic battery investments. The company expects to build over 2 million vehicles annually in the U.S.
GM’s CFO Paul Jacobson remained optimistic about tariff expenses coming down as bilateral trade deals emerge and sourcing adjustments are implemented. The company is making progress on mitigating a $4 billion to $5 billion gross tariff impact through manufacturing adjustments, cost initiatives, and pricing.
Revenue declined 1% to $47.12 billion, but still topped estimates of $45.84 billion. EV sales grew 46,300 units in the second quarter, but overall U.S. EV growth is slowing due to the expiration of a $7,500 tax credit in September. GM maintained its investment plans for domestic battery development and profit-improvement initiatives.
Analysts, including Wedbush’s Dan Ives, praised Barra’s handling of industry challenges, citing continued demand for GM’s entire fleet of EVs and internal combustion engine vehicles.
Source: https://apnews.com/article/general-motors-gm-stellantis-tariff-trump-ev-6b82523319408e03ae2729ab2ebb33b8