General Motors reduced its profits for 2025 on Thursday by more than 20 % and said Trump’s tariffs will increase its cost by $ 4 billion to $ 5 billion this year.
In a teleconference with analysts, GM executives said the company is now expecting to make $ 8.2 billion at $ 10.1 billion this year, from a previous $ 11.2 billion to $ 12.5 billion.
“GM’s business is fundamentally strong as we adapt the new environment of commercial policy,” said Mary T. Barra’s chief executive.
In April, President Trump imposed a 25 % invoices on imported vehicles and will begin to impose the same duty on imported car parts on Saturday. On Tuesday, the president amended how invoices are implemented to give car makers some relief, including part -time invoices in imported places for two years.
Ms Barra said GM hopes to offset about 30 % of the impacts of invoices by increasing production on US plants, reducing costs and cooperation with suppliers to increase domestic production and accessories.
GM had said in the past that it was increasing truck production in a factory near Fort Wayne, Ind., Which will reduce the number of vehicles it imports from Canada and Mexico. Ms Barra said production at Fort Wayne plant will increase by about 50,000 trucks this year.
He also said that GM is now planning to make more battery units in US plants to increase the portion of domestic content in its electric vehicles.
About $ 2 billion in invoice -related cost increases will come from vehicles manufactured in Canada, Mexico and South Korea and sold in the United States.
Analysts have predicted that invoices will add thousands of dollars to the cost of new cars and trucks and some or all of them will be transferred to consumers. In the call, GM’s head of financial director Paul Jacobson said the company now expects that new vehicles will increase by 0.5 % to 1 % this year. Previously, the company had predicted that pricing would be reduced by 1 % to 1.5 %.
Other automakers are also planning to produce more vehicles in the United States. Mercedes-Benz said on Thursday that it will build a new vehicle at a Alabama factory as part of the German automobile industry called “deeper commitment” to the construction in the United States.
While the company did not say that invoices, Mercedes and other highways have been in pain in recent weeks to emphasize how many cars are already building in the United States and their plans to make more. Mercedes did not provide details of the car, except saying it would be a new plan adapted to the US market and will start production in 2027.
The company’s factory near Tuscaloosa, Ala, mainly collects luxury sports vehicles, including electric models, for sale in the United States and exporting to other markets.
Jack ewing They contributed reports.
