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GM Revises 2025 Outlook, Citing $5 Billion Tariff Impact and $500 Million Recall

General Motors lowers earnings forecasts while maintaining capital investment plans and committing to supply-chain strategies to offset rising costs.

GM CEO Mary Barra.
Harley-Davidson has suffered from falling demand as consumers reconsider their purchases in an uncertain economy
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Overview

  • General Motors reduced its 2025 adjusted EBIT guidance to $10–12.5 billion, down from $13.7–15.7 billion, due to new U.S. auto tariffs.
  • The company projects a $4–5 billion financial impact from the tariffs but plans to mitigate over 30% of these costs through supply-chain initiatives.
  • GM's updated outlook includes a $500 million allocation in Q2 to address a recall of nearly 600,000 SUVs and trucks with engine issues.
  • Despite cost pressures, GM is maintaining its $10–11 billion capital expenditure plan, including investments in electric vehicle battery ventures.
  • CEO Mary Barra emphasized supply-chain resilience efforts, including a 27% increase in U.S.-sourced parts since 2019, to adapt to the changing trade environment.