Summary
General Motors (GM) reported losing $1.1 billion in profits over three months due to tariffs, lowering its profit margin from 9% to 6.1%. GM plans to offset some costs through efficiency measures and price adjustments. Stellantis also reported significant tariff-related costs and saw a decline in vehicle shipments.
Key Facts
- General Motors lost $1.1 billion in profits over three months because of tariffs.
- The company's profit margin dropped from 9% to 6.1%.
- GM aims to offset 30% of the $4 to $5 billion in 2025 tariff costs through cost-cutting and price changes.
- The U.S. tariff policy has been unstable, impacting carmakers' strategies.
- GM continues to import cars from Korea despite a 25% tariff, as these models are in demand.
- GM stock fell by 6% after revealing earnings, indicating investor concerns.
- Stellantis reported $387 million in tariff costs, reducing vehicle shipments by 6%.
- Car makers generally have not passed the increased costs from tariffs to consumers yet.
- The average new car price rose 1.2% over the previous year, below historical increases.
