Topline
General Motors posted a $3 billion second-quarter profit—down $1.1 billion primarily because of tariffs imposed by the Trump administration, the company said in its earnings call on Tuesday, a day after Stellantis (Jeep, Fiat, Chrysler) blamed steep losses on tariffs.
The American auto manufacturer’s net income fell by 35%, the company said in its second quarter … More earnings call.
Key Facts
GM reported a net income of $1.89 billion for the second quarter, down from $2.93 billion in the same quarter last year, pushing the automaker’s stock down 6.5% after markets opened on Tuesday.
GM said their projected tariff impact was still unchanged—costing between $4 to $5 billion for the year—but expected the impact to be higher in the third quarter due to “indirect tariff costs.”
The company said it planned to mitigate the tariffs by “manufacturing adjustments, targeted cost initiatives, and consistent pricing,” but also noted that the Q2 earnings still reflected “minimal mitigation offsets.”
In its letter to shareholders, GM CEO Mary Barra touted the company’s 4 billion investment in U.S. assembly plants in Michigan, Kansas, and Tennessee—shifting production of an estimated 2 million vehicles previously manufactured in Mexico in a move the company says will also reduce their tariff exposure.
Barra