GM CEO Mary Barra has addressed the automaker’s strategy in response to new tariffs implemented by the Trump administration. General Motors now plans to increase domestic truck production by 50,000 units annually, while simultaneously slashing production at its facility in Oshawa, Canada. In addition, the CEO states that GM will “remain competitive” and “disciplined” when it comes to vehicle pricing.
“We are not going to do what we’ve seen others do, especially in EV space, of putting on very high incentives to move that,” Barra said during an interview with CNBC.
GM CEO Mary Barra in 2021
While it’s largely assumed that automakers will need to raise prices in the face of increased production costs, the GM CEO stated that General Motors is “assuming a pricing environment that’s similar to what it is today.”
General Motors recently released its updated 2025 financial guidance, which was delayed as a result of the timing for the White House’s latest tariff announcements. The automaker is currently expecting the new taxes to increase company costs by $4 billion to $5 billion. However, General Motors also says it is actively working to mitigate the financial impact by moving to increase production at its domestic facilities. Barra is also quick to point out that more than 80 percent of The General’s U.S.-built vehicles already meet compliance under the U.S.-Mexico-Canada Agreement (USMCA) trade agreement, with a 27-percent increase in U.S. parts souring over the last six years. Check out our previous coverage for more information on GM vehicle parts content, including Buick parts content, Cadillac parts content, Chevrolet parts content, and GMC parts content.
GM Renaissance Center in Detroit
General Motors currently operates more than 50 production facilities in the U.S., many of which are well below production capacity, including standouts like Factory Zero and Lansing Grand River.
Back in March, President Trump announced a 25-percent tariff on new vehicles assembled outside the U.S.
Check out the full Barra interview below:
Comments
Oh Mary Mediocrity Barra mind explaining that $25,500 discount on the Brightdrop EVs?
Yes that was correct. A discount worth a chevy trailerblazer.
Nothing bright about it except, the red ink.
Go look at the production numbers, can barely give them away. Although a lot of dealerships have signed up to sell them.
More horschetta from Queen Mary. The 4 from Korea will have to get big price increases and the Equinox/Terrain come from the troubled (union issues) Mexico plant. So, sure, focus on your moneymakers – big trucks that are headed for a BIG sales slump. Brilliant. And no big incentives on EVs? Oh, THAT made my day. Nearly rolled off my chair in hysterical laughter.
GM pricing strategy to remain, “whatever the market will bear.”. I do believe we’re approving the absolute limit of that strategy. To bad so much money was incinerated on EV with not much to show..
Mary doing the spin again. She has a problem telling the truth about the industry. Prices will go up especially on those built in China and Korea. The biggest selling vehicles are made in Mexico(Equinox) Korea (Trailblazer) with almost no content of USA parts. She has been in charge way too long and has put the Company in this position by outsourcing product to other countries and then shipping back to the USA for sale. The Company deserves everything they are getting right now, because they have never been loyal to America or the American workers!
And the Silverado EV’s continue to rot on the lots.