General Motors (GM) reduced on Thursday its forecast of adjusted benefits before interest and taxes (adjusted EBIT) in 2025 to between 10,000 and 12.5 billion dollars after assessing between 4,000 and 5,000 million dollars the negative impact of tariffs imposed by the administration of President Donald Trump.
After the publication of the annual guide, the GM management team stressed at a telephone conference that the company is focused on increasing the purchase of car parts in the United States and further reduce the impact of tariffs.
Before the start of the commercial war, the largest American car manufacturer had planned annual benefits in 2025 between 13,700 and 15.7 billion dollars.
The new guide for 2025 also includes a net profit attributable to shareholders between 8,200 and 10.1 billion dollars, compared to between 11,200 and 12.5 billion planned above.
In the teleconference with analysts, the financial director of GM, Paul Jacobson, said that the company has taken measures to compensate for 30% of the impact of tariffs and what “additional measures are being evaluated”.
“The adaptation to this dynamic environment will need time but we trust our ability to respond effectively and compensate at least 30% of our exposure,” Jacobson explained.
In a letter to the shareholders, the president and CEO of GM, Mary Barra, said that the calculation of the new benefits figures takes into account the amendment announced this week by Trump to the executive order of March 26, 2025 that established a 25% tariff on some imported parts.
The amendment applies an equivalent loan 3.75% of the total value of the vehicle for assemblies in the country between April 3, 2025 to April 30, 2026 and 2.5% for those mounted from May 1, 2026 to April 30, 2027.
Jacobson said that the GM principle is “to buy where we produce” and that the company, although already buys “basically” in the US, is working with its suppliers for more parts to come from local plants.
“Tuesday’s presidential action will provide tariff compensation to more than 1.5 million vehicles that we produce in the United States every year. This will help mitigate a substantial portion of tariffs on parts that are used in those vehicles and will help avoid added costs to the production of US vehicles,” he explained.
In the letter to the shareholders, Barra explained that “taking into account the positive impact of the shares adopted by the administration this week, we update our provision of EBIT adjusted for the whole year, placing it in a range of between 10,000 and 12.5 billion dollars, including a current tariff exhibition of between 4,000 and 5,000 million”.
The head of GM also said that the manufacturer has been in constant communication with the Trump team since before its inauguration on January 20 and that it is confident that the dialogue will continue in the future.
“We hope to continue maintaining a solid dialogue with the administration in trade and other policies as they evolve. As you know, there are ongoing negotiations with key commercial partners that could also have an impact. We will continue to be agile and disciplined and we will keep them informed as we know more details,” he added.
With EFE information
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