Overview

• General Motors’ second-quarter profit plunged 35.4% to $1.9 billion, driven largely by a $1.1 billion tariff charge on imported vehicles and parts.
• Stellantis projects up to €2.3 billion ($2.7 billion) in first-half losses, attributing nearly €300 million to direct tariff payments and a 25% drop in North American sales.
• Both companies cautioned that tariff headwinds will intensify in the second half of 2025, with GM maintaining a $4–$5 billion annual tariff hit outlook and Stellantis warning of further production disruptions.
• GM announced a $4 billion investment across three U.S. plants and plans to shift production of models like the Cadillac Escalade to domestic facilities to curb future tariff exposure.
• Together, GM and Stellantis aim to offset roughly 30% of their tariff burden through manufacturing adjustments, targeted cost initiatives and steady pricing strategies.