GM Chief Financial Officer Paul Jacobson told investors they “shouldn’t rely on” previously announced guidance of $13.7 billion to $15.7 billion in profits this year. The automaker is reevaluating its profit guidance due to new tariffs from the Trump administration, which are adding costs and uncertainty to the automotive industry.
“Given the evolving nature of the situation, we believe the future impact of tariffs could be significant,” Jacobson said, according to The Detroit News. “We are reassessing our guidance and look forward to sharing more when we have greater clarity.”
This warning is despite strong first-quarter results for GM, largely driven by car shoppers scrambling to buy new cars before tariffs potentially make them more expensive. “Consumers contemplating a new vehicle purchase are rushing to dealers before potential vehicle pricing implications take hold,” said Chris Hopson, principal analyst at S&P Global Mobility, in a statement.
“The industry undoubtedly benefited from some pull-ahead demand from customers purchasing vehicles ahead of potential tariffs, particularly in March,” Jacobson said. “This strong demand environment has continued into April where we have seen U.S. deliveries up more than 20 percent versus last year.”
Tariffs aside, Jacobson touted “a third consecutive quarter of sequential market share growth, a 53% increase in the sales of New Energy Vehicles,” and equity income of $45 million last quarter in China. General Motors also reported a rising U.S. market share, favorable pricing, and profit margins within its target range.
In other recent tariff news, President Donald Trump is expected to soften his tariff policy on cars. The 25 percent tariff on cars imported to the United States will remain, but automakers paying that tariff won’t also be charged other tariffs on materials like steel and aluminum. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy,” GM CEO Mary Barra said of the news, according to CNBC.
Comments
Some news outlets are saying that GM has commenced whining about profits tanking. Those poor, poor things!
Ahh, -a revision in the formula in ‘cooking the books’…
Of course they have to issue a revision, they are going to eventually have to replace nearly 900,000 L87 6.2L engines for vehicles over the last 4 years. That won’t be cheap.
The correct amount is 597k vehicles, and if you think the vast majority won’t get the 0w40 oil change and Owners patted on their head and sent on their way, then you really don’t know how GM treats their customers