GM is ready with several different plans already in place to weather the results of 47th U.S. President Donald Trump imposing tariffs on Canada and Mexico, should the commander-in-chief decide to do so.
GM CFO Paul Jacobson reassured investors that “we’ve got plans in place and we’re continuing to work proactively with the administration and with Congress on what we think are the right things to do,” Automotive News reports.
GM CFO Paul Jacobson
The “right things” are actions to “preserve American jobs and preserve American innovation,” according to Jacobson as he spoke during an earnings call on January 28th. The “multiple playbooks” GM has ready to shift some of its pickup production to American plants and away from Mexico, where 35 percent of its full-size trucks roll off the assembly line.
GM has also accelerated delivery of inventory from its Canadian and Mexican facilities to the U.S. The Chevy BrightDrop EV van is built in Canada, while the GMC Terrain, Chevy Blazer and Chevy Equinox crossovers are produced south of the border. General Motors CEO Mary Barra declared that “we are working across our supply chain, logistics network and assembly plants so that we are prepared to mitigate near-term impacts” and that the majority of the planned steps “are no-cost or low-cost.”
President Donald Trump
While President Trump’s possible elimination of the $7,500 federal tax credit for EVs comes just as GM’s electric vehicle portfolio is on the verge of becoming profitable, the automaker’s leadership is optimistic in this regard also. Mary Barra said the company can pivot back toward ICE models if EV demand weakens.
Morgan Stanley analysts agree with Barra, remarking that “if some of the anticipated regulatory changes around EV incentives help extend the useful life of ICE technology, GM may be relatively ‘hedged’ in that regard.” GM produced approximately 200,000 EVs in North America during calendar 2024 and has a wholesale target of 300,000 electric vehicles for 2025.
GM’s revenue was $187.4 billion in 2024, a 9.1-percent year-over-year increase. Adjusted pretax income was its highest ever at $14.9 billion, up 21 percent from the previous year. Net income was down 41 percent to $6 billion, with $4 billion in restructuring charges for its China operation putting a serious dent in profits.
The company provided a positive outlook for its 2025 performance despite the possible threat of 25-percent tariffs on imports from Mexico and Canada. CFO Paul Jacobson explained “the reason that we guided to the status quo is because there are really infinite permutations on policy and we didn’t want to get into advocacy in our guidance.”
Comments
it seems the cars for north americans will be in so high price as it is for everyone all over the world… my point is maybe those investiments in brasil is to compensate the budget which will be lost in USA, do not believe the production of GM Mex of a factory of Porsche in USA or an Audi plant could be from night to day to be rebuilt in USA, USA people will feel what is inflation, we here in europe or brasil common have, if maybe huge favela will have in USA also do not know, probably yes in 5 years
Trust me, we already have favelas. The homeless encampments are just about to become larger.
i know, other day saw a documentary about somewhere in new orleans or tenesse something like that without fresh fruits… and sincere do not have the desire anymore to live in USA… in past a florida would be ok.. maybe palm beach… as knowing USA has some places with crackland or cracolandia too… well… i stay here… and the genetics in last 15 years in USA became terribl…so much ugly people
…are you the MK who demanded Trump’s assassination on the FordAuthority web site ? hey, if so, look over your shoulder…US Secret Service is aware…
Common sense agenda is gonna make things expensive to buy. Like those 2.7s.
As a Canadian, will be buying anything not produced in America.
Was just going to order my second c8 corvette, but since it is being built in USA, I will definitely be ordering something else NOT built in USA. Perhaps a Porsche, haven’t had one for awhile and always enjoyed it. Just my small part, but it makes me feel go to put it to Donald, just a tiny bit.
So why is it OK to pay tariffs Canada has imposed on the USA for decades?
If the US government puts a tariff on a Canadian product, it will be met with a similar tariff. And by the way, tariffs are paid by the IMPORTER. They are located in your case, in the US. You pay, not Canadians.
Moron. There are no Canadian tariffs on US imports into Canada. You may have heard of the NAFTA 2.0 agreement Canada signed with Donald Trump. Or NAFTA 1. Or the Canada US free trade agreement in the 1980s that ended US Canada tariffs prior to the criminals illegal tariffs put in place today.
Me,
There are Canadian tariffs on dairy products going into Canada. The United States subsidizes Dairy Farmers making milk and dairy products shipped to Canada unfairly inexpensive. This causes hardships on the Canadian Dairy Farmers.
This is an example of a fair tariff.
You must be a trump supporter because you feel compelled to call people names and try to belittle them to get your point across, just like your leader.
,,,bye bye…happy to see ya go…besides, you will NEVER be able to “put it” to the Donald…
Really, I bet the workers at the corvette plant in bowling green, might not see it that way. Their jobs depend on building cars. Good luck to you with your new leader! He’s messing with you and your people and you don’t see it. I feel bad for you.
I put it to you with a stick wrap with barbed wire.
When some angry bureaucrat demands to know why the next fleet of presidential limos and escort vehicles will be so expensive, simply answer “Tariffs”.
Ouch,
Better yet, simply answer Trump.
Looks like the Orion plant may benefit since EVs are tanking.
Except EV sales continue to increase, except for Tesla. And with tariffs increasing the price of gas, more people will transition to EVs.
Oh, gotta love the consequences of your inability to think clearly. But go ahead and enjoy the hire costs coming.
The “hire” costs coming?
Funny how your only response is to complain about my phone charging higher to hire.
Enjoy the consequences of your vote I’ve got the popcorn ready to enjoy your whining.
Phone “charging” higher to hire? Don’t worry, Im not whining about the higher prices. It could be worse- we could have had an ignorant bimbo in office instead.
Prepare for widespread inflation; the price of absolutely everything will be affected by Trump’s tariff BS. You asked for it, you got it. Good luck.
Trump’s first presidency did nothing for the average wage earner.
His tax overhaul only benefited his buddies, the richest 1% of Americans.
Good luck to all the Lemmings that voted for Trump. You got nothing from Trump in his first presidency, and this one is going to be worse for you. Everything Trump touches dies.
You obviously don’t understand taxes, you liberal ass. He doubled the standard deduction that helped anyone making LESS than $100,000 a year.
Thomas,
I’m retired on a fixed income. I have my taxes professionally prepared.
The income tax I paid at the end of the year was the same, before and after, Trump’s big tax reform.
Yes you are a trump supporter. I can tell by the way you call people names and try to degrade them.
My liberal wife practically tarred and feathered me for voting third party. NOT because I voted for Trump (I didn’t as mentioned above). But because I didn’t vote for Kamala. She asked me who I voted for and when I said “I am not telling you” she exploded on me saying “I need to know who I’m married to.” Because who I voted for determines the person that I am.
Tribalism and demeaning people who don’t agree with your view exists on both sides my friend. And the worst part about it, the left extreme of it has made its way into my own household. So again,
…funny….ditch the wife, keep your integrity….
Trump eliminated several deductions for the middle class so you lost in the end even with raising the standard deduction. Trump started the trillion dollar deficits with his tax cuts for the top wage earners and corporations and not having the cuts paid for! He and his tariffs will drive up inflation resulting to higher interest rates and ending with a recession! His administration in the first weeks has been a disaster with federal judges freezing some of his unconstitutional policies. He belongs in jail for his disrespect to our democracy and constitution!
Greg,
Thanks, you tell the truth.
Too many people can’t see Trump for what he really is, or they don’t want to admit their mistake in supporting him.
President Nixon won re-election by a landslide, one of the biggest margins in history. After he left office in disgrace you couldn’t find anyone that would admit to ever voting for him. Trump makes President Nixon look like an altar boy.
It will be interesting to see how history views Trump’s presidencies.
,,,quick question….I bet you give Biden a perfect “10”……
….Greg Greg Greg…..sucking down the MSNBC kool aid, huh ?
Your Biden comment is a statement, not a question. Lol
No Thomas, YOU don’t understand.
When his 2017 tax plan went into effect, I started paying MORE federal income tax.
He most certainly did NOT help the regular people.
John Z yes. Trumpers also don’t acknowledge that 45 added 9.3 Trillion to the deficit. That is why they have the illusion that the economy was better under Trump.
Biden with his outdated cold war mentality added even more to the deficit with constant giveaways to Ukraine, eventually forcing a desperate Putin to turn to that North Korean lunatic for help, putting all of humanity at risk. And what does Kamala say? “I wouldn’t do anything differently.”
I don’t care for Trump, but don’t think for one second Dems have the interests of the American people even under any consideration.
…amen…..
oh my, another CNN drone….
You want to be experts don’t know Trump. Every negative prediction I have ever heard never came to and “I was wrong” is never said there after. Some play checkers, some play chess.
Mark,
Trump is not new to me just because he ran for president. I have lived in New York my entire life.
I despised Trump back in the mid seventies, and my opinion of him has never changed.
He is a carnival barker, a grifter, a Despicable individual, to say the least.
…yup…it’s been proven every prediction Trump made was right on…
Yeah, I heard he had predicted some guy calling himself UncleAL would be making continuous ignorant comments on GM Authority.
Two more inches to the right, and we wouldn’t still be talking about how Trump is lining his pockets with cash and only taking care of his rich buddies. This presidency will be worse then his last presidency. Trump doesn’t care about the middle class Americans, and never will. He only cares about himself. That is how narcissists are. Winning a second presidency was the only thing that was going to keep him from going to prison. Most of you will come to regret voting for Donald Trump. The rest are too clueless to realize what they have done.
…maybe we’ll be lucky and someone will go two inches to the left on you…
Rhian, you forgot that Cadillac produces the new Optiq EV in Mexico, too. Sales just started last month.
Outstanding leadership from Mary Barra as GM navigates challenging times. We have a choice of exceptional ICE vehicles and EVs.
Exceptional ICE vehicles like the Camaro, Malibu, XT4, and soon to be XT5 and XT 6? We’re living in the darkest era for GM and Ford and what’s left of the former Chrysler and we have nothing but the incompetent, clueless “leadership” of the car companies and brain dead liberal politicians to blame.
Sold my C8 because of transmission trouble and Trump tariff. Porsche in my 3 garages.
…wow…it takes 3 garages for a Porsche…bet you need all that garage space for all the extra parts for repairs….
GM wages in Mexico are so low that they can eat the tariffs. One day’s pay there is equal to the one hour’s pay in the USA.
Hey GM start making ALL your cars here in the good old USA! There is a good plan! Bring Cadillac back back from China too while you’re at it. Go WOKE Go BROKE!
Hey Uncle Al, what’s your address?
Exactly 👍
Shame on voters of this maligant idiot. Trump will wreck the auto industry and many other ancillary industries that make up the gears of America. He has already demonstrated his gross incompetence this first week of his presidency and blamed everyone but himself for the arising issues. His dehumanizing of folks the folks that don’t fit his mold are the first steps Adolf Hitler took. Shame on our electorate. Felon, rapist, adulter, tax cheat, business cheat, draft dodger, serial lier and seditionist. What a great example for the next generation
Well stated, I totally agree.
Back to tlyour safe space p—y
You are correct. Trump’s day is coming, why do you think he is staying inside since inauguration.
Larry w,
Trump’s inauguration wasn’t held inside because it was too cold outside. Trump has dementia, he is delusional and paranoid.
He thinks they are out to get him. His father, Fred died from Alzheimer’s, and you can see it starting in him.
The white liberal is the greatest enemy of America and the greatest enemy of the black man.
Malcolm X.
Canadians. Lol.