General Motors CEO Mary Barra revealed what she expects from the new auto tariff and how the company would comply with the administration’s guidance during a comprehensive interview on ‘Morning with Maria’.
General Motors’ Despite President Trump’s Automotive Tariff as the largest automeker in the US, the net income decreased by 35% in the second quarter despite the strong sales benefits in the US.
Despite the decline in profit, GM results More than Wall Street Estimates For revenue and adjusted operational income. The company maintained its previous profit guidance for 2025.
In the letter to the shareholders, CEO Mary Barra said that GM “is making business conditions for a profitable, long -term future because we are compatible with new trade and tax policies, and are technical landscapes that develop rapidly.”
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The CEO of General Motors, Mary Barra, speaks during an interview with David Rubensinstein, president of the Economic Club at Ritz Carlton Hotel in Washington, DC on December 13, 2023. Bara covers many subjects related to motor vehicle industry (Photo by Anna Moneymaker / Getty Image / Getty Image)
In the second quarter, tariffs increased GM’s operational income to more than $ 1.1 billion. The company’s net income of $ 1.8 billion was below $ 2.9 billion in the second quarter of 2024. GM said some of its tariffs “mitigation” efforts, such as making more vehicles in their American factories, were fully implemented.
The company said earlier this year Tariff cost will add $ 4 billion to $ 5 billion – one -third of its pretax gains last year – and its purpose is to offset 30% of the tariff bill through tasks such as adjusting your manufacturing footprint.
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The GM has not implemented a wide -scale price hike in response to tariffs, but Barra has not denied the prices, saying that the company will remain competitive.
According to the Cox Automotive, GM posted an industry-municipality benefit of 12% through the first half of the year. The sales for the industry were 7% during the same period, the cox data show.
An American flag flies at a Chevrolet dealership on August 4, 2021 in Glendel, California. (Mario Tama / Getty Image / Getty Images)
In April, Trump imposed 25% tariffs on imported vehicles and motor vehicle parts, although he later allowed the vehicle manufacturers to pay tariffs on non-US materials in their vehicles gathered in Canada and Mexico, although he exempt most parts from Canada and Mexico.
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GM almost imports Half of the vehicles sell it In the US, including entry-level Chevrolet and Buke manufactured in South Korea, including stickers prices under $ 30,000, as well as full-sized trucks and electric vehicles made in Mexico and Canada.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | General Motors cum. | 53.21 | -0.01 |
-0.02% |
GM has said that this small SUV is born in South Korea, such as Chevy Tracks, still covers its cost of production with tariffs.
The company has announced steps to move a small portion of production in the US, such as Spring Hill from a factory in Mexico, bringing a gas -powered shaveler blazer SUV from a factory in the tennine.
During the Wall Street Journal event in May, Barra said, “We are trying to make changes to pay less tariffs because we are strengthening our American manufacturing.”
