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
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 also praised the company’s success in the electric vehicle business, despite the current administration’s efforts to roll back tax credits, noting: “Chevrolet became the #2 EV brand in the second quarter, while Cadillac became the #5 EV brand overall and the luxury EV leader.”
Key Background
On Monday, Stellantis, the multinational automaker that produces Chrysler and Jeep, posted a nearly $2.7 billion loss for the year, making an unusual move of posting unaudited preliminary financial data. Stellantis suspended its financial guidance in April, and the company plans to introduce new guidance on July 29, CFO Doug Ostermann announced. Their second quarter hit was still a surprising loss for the automaker whose portfolio also includes European brands like Fiat, Peugeot, and Maserati. The company said it reduced North American imports by approximately 109,000 units—a 25% decline from the same period last year. About 40% of the 1.2 million vehicles Stellantis sold in the U.S. in 2024 were imported, primarily from Mexico and Canada, Reuters reported. The Trump administration has since imposed 25% tariffs on imports from both countries.