Reuters writes that the largest American car manufacturer announced that in the third quarter the influence of duties can be even more severe. GM maintained earlier forecasts, according to which the effects of commercial voltages may charge annual financial results by $ 4-5 billion. The company added that it is able to reduce about 30 percent. this impact, taking appropriate savings actions.
In the second quarter, which ended on June 30, GM revenues fell by almost 2 percent. year on year and amounted to around $ 47 billion. The corrected profit per share decreased to $ 2.53 from $ 3.06 a year earlier, as Reuters writes.
GM, thus, joined the group of companies that revised annual forecasts due to the effects of customs. The new range of the forecast corrected profit is from 10 to $ 12.5 billion a year – and the company is still holding it.
Growth in the USA and reflection in China, but cost pressure is growing
In addition to the influence of duties, the operational activity of GM was stable. Sales on the American market – a key for profits – increased by 7 percent. The company still obtained high prices for its pickups and SUVs. In China, GM recorded a slight profit, reversing last year's loss.
Analysts cited by Reuters noticed that in the face of growing costs of GM may be forced to reduce investments in future projects or cuts of other expenses.
Other manufacturers also warn against the effects of customs policy. Stellantis (owner of the Jeep brand) announced on Monday that customs will have a serious impact on the results of the second half of 2025 – in the first half they cost the company around EUR 300 million. On Tuesday morning, Stellantis and Ford's actions also lost slightly – by about 1 percent.
Return to internal combustion engines and the end of electrics reliefs
GM also undertakes actions to strengthen the production of internal combustion vehicles, despite earlier plans to end their production by 2035. In June, the company announced investments worth $ 4 billion in three plants in the USA – in Michigan, Kansas and Tennessee – including Transfer of the production of the Cadillac Escalade model and increasing the production of large pickups.
“We position our activities with a view to a long -term, profitable future, adapting to the new realities of commercial and tax policy” – said Mary Barra, president of
More and more manufacturers are moving their attention from electric cars back to the key lines of internal combustion vehicles-mainly SUVs and pickups. The increase in the sale of electric cars clearly slowed down after dynamic increases from the beginning of the decade.
This trend is also deepened by the upcoming expiry of government support for electric cars. The Budget Act signed by Trump eliminates tax breaks from the end of September: 7.5 thousand. hole. For new and 4,000 dollars for used electric vehicles. Penalties for not meeting the standards of fuel consumption were also abolished, which promotes the further development of internal combustion cars.
