{"id":1236,"date":"2025-05-01T17:48:40","date_gmt":"2025-05-01T17:48:40","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/gm-cuts-profit-forecast-by-20-and-says-auto-tariffs-will-cost-it-billions\/"},"modified":"2025-05-01T17:48:40","modified_gmt":"2025-05-01T17:48:40","slug":"gm-cuts-profit-forecast-by-20-and-says-auto-tariffs-will-cost-it-billions","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/gm-cuts-profit-forecast-by-20-and-says-auto-tariffs-will-cost-it-billions\/","title":{"rendered":"GM Cuts Profit Forecast by 20% and Says Auto Tariffs Will Cost It Billions"},"content":{"rendered":"<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">General Motors cut its profit forecast for 2025 on Thursday by more than 20 percent and said that the Trump administration\u2019s tariffs would increase its costs by $4 billion to $5 billion this year.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In a conference call with analysts, G.M. executives said the company now expects to make $8.2 billion to $10.1 billion this year, down from a previous forecast of $11.2 billion to $12.5 billion.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cG.M.\u2019s business is fundamentally strong as we adapt to the new trade policy environment,\u201d the company\u2019s chief executive, Mary T. Barra, said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In April, President Trump imposed tariffs of 25 percent on imported vehicles and will begin imposing the same duty on imported auto parts on Saturday. On Tuesday the president modified how the tariffs are applied to give automakers some relief, including partial reimbursement for tariffs on imported parts for two years.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Ms. Barra said G.M. hopes to offset about 30 percent of the impact of the tariffs by increasing production in U.S. plants, cutting costs, and working with suppliers to raise their domestic production of parts and components.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">G.M. had previously said it was increasing pickup truck production at a plant near Fort Wayne, Ind., which will reduce the number of vehicles it imports from Canada and Mexico. Ms. Barra said output at the Fort Wayne factory would increase by about 50,000 trucks this year.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">She also said G.M. now plans to make more battery modules in its U.S. plants to raise the portion of domestic content in its electric vehicles.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">About $2 billion in tariff-related cost increases will come from vehicles that are made in Canada, Mexico and South Korea and sold in the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Analysts have predicted that the tariffs will add thousands of dollars to the cost of new cars and trucks, and some or all of that would be passed on to consumers. In the call, G.M.\u2019s chief financial officer, Paul Jacobson, said the company now expected new vehicle prices to rise 0.5 percent to 1 percent this year. Previously, the company had forecast that pricing would fall by 1 percent to 1.5 percent.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Other automakers are also planning to produce more vehicles in the United States. Mercedes-Benz said Thursday that it would build a new vehicle at an Alabama factory as part of what the German carmaker called a \u201cdeepening commitment\u201d to manufacturing in the United States.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While the company did not mention tariffs, Mercedes and other carmakers have been at pains in recent weeks to emphasize how many cars they already build in the United States and their plans to make more. Mercedes did not provide details about the car, except to say that it would be a new design tailored to the U.S. market and begin production in 2027.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The company\u2019s factory near Tuscaloosa, Ala., primarily assembles luxury sport utility vehicles, including electric models, for sale in the United States and export to other markets.<\/p>\n<p class=\"css-798hid etfikam0\">Jack Ewing<!-- --> contributed reporting.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>General Motors cut its profit forecast for 2025 on Thursday by more than 20 percent and said that the Trump administration\u2019s tariffs would increase its costs by $4 billion to $5 billion this year. In a conference call with analysts, G.M. executives said the company now expects to make $8.2 billion to $10.1 billion this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[532,916,790,452,915,914,199],"class_list":["post-1236","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-auto","tag-billions","tag-cost","tag-cuts","tag-forecast","tag-profit","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=1236"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/1237"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=1236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=1236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=1236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}