General Motors, under CEO Mary Barra, reports a 2.3% revenue increase for Q1 2025, marking progress in electric vehicle profitability and claiming the second position in the U.S. EV market. However, Barra warns that Trump's tariffs on foreign-made parts will negatively impact GM's earnings by $4-5 billion this year, prompting a revised earnings forecast. Despite these challenges, she asserts that GM's core business remains strong as they adapt to a shifting trade environment and focus on EV advancements.
When the CEO of General Motors has to front-load a letter to investors with a thank-you note to President Donald Trump "for his support of the U.S. automotive industry," you know that the road ahead is about to get bumpy.
Importantly, GM's business is growing and fundamentally strong as we adapt to the new trade policy environment, further strengthen our supply base, and drive EV profitability.
Incorporating the positive impact of the administration's actions this week, we are updating our full-year adjusted guidance to a range of $10 billion to $12.5 billion, including a current tariff exposure of $4 billion to $5 billion.
Most industry experts note that this reduction won't be enough to mitigate the multi-billion-dollar impact of more expensive components and vehicles as Trump attempts a shock-reshoring of American manufacturing jobs.
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