- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Tariffs cost GM $1 billion
Posted on 7/22/25 at 7:05 am
Posted on 7/22/25 at 7:05 am
quote:LINKReuters
(Reuters) -General Motors' ( GM ) second-quarter core profit fell 32% to $3 billion on Tuesday, as the automaker continued to confront challenging tariff policies, which it said sapped $1.1 billion from the results.
The largest U.S. automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact.
The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG.
Shares fell about 3% in premarket trade.
GM was among corporations that revised annual guidance due to the impact from President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast.
Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the U.S. market - its main profit center - rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier.
Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs.
15
Posted on 7/22/25 at 7:33 am to bigjoe1
Oh, I thought they said tariffs would just be passed along to the customer?
Posted on 7/22/25 at 7:34 am to bigjoe1
Good. When they going to pay the taxpayers back for getting bailed out years ago?
Posted on 7/22/25 at 7:41 am to Civildawg
Posted on 7/22/25 at 7:50 am to bigjoe1
GM cost me $10,000 when they went bankrupt. Frick those a-holes.
Posted on 7/22/25 at 8:13 am to bigjoe1
quote:
its main profit center - rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs.
Doesn’t sound like they have a tariff problem. It looks like a EV messaging and commitment problem.
Posted on 7/22/25 at 8:14 am to TigerTatorTots
quote:
I thought they said tariffs would just be passed along to the customer?
China pays them I was told ....forget who
Posted on 7/22/25 at 9:57 am to bigjoe1
GM is one of only a few automakers whose sales were up for the last quarter. They've actually done very well recently while VW, Honda, Nissan, etc. all saw big declines. This trend is driven by the popularity of their internal combustion powered pickups and SUVs - especially their full sized models like the Silverado, Sierra, Yukon, and Suburban. They use a lot of the same parts in smaller trucks like the Colorado and Canyon, which are also popular.
Not a lot of people are aware, but GM imports a lot of fully assembled cars from China and South Korea under the Buick brand. The new Chevrolet Trax and Buick Envista are probably the most compelling "affordable" vehicles that GM has ever sold in the US market, and they are both manufactured in South Korea. They are highly competitive with a sub-$25,000 price tag, but it's a different story if the price has to climb to $30,000 or more. GM has almost nothing but "global" platforms, so their imported models are usually compatible with assembly lines in the US. They have the opportunity to onshore in many cases and they seem to be doing that where they can albeit slowly.
It is taking them more time to onshore production from Mexico too. Silao is a huge factory that cranks out a lot of models. They've stood up a huge US factory (Orion) to build EVs but it's going to end up building ICE pickups and SUVs instead. That re-formatting is taking some time, but it's the correct move for now. Looks like their new generation V8 engines will be manufactured entirely in New York, but that's mostly due to massive quality issues with Mexican sourced parts (such as the 6.2L V8 bearings that resulted in a huge recall) but it will likely also help them on tarriffs.
GM bet big on EV production in the US, but they didn't fully commit the way Nissan did.
Not a lot of people are aware, but GM imports a lot of fully assembled cars from China and South Korea under the Buick brand. The new Chevrolet Trax and Buick Envista are probably the most compelling "affordable" vehicles that GM has ever sold in the US market, and they are both manufactured in South Korea. They are highly competitive with a sub-$25,000 price tag, but it's a different story if the price has to climb to $30,000 or more. GM has almost nothing but "global" platforms, so their imported models are usually compatible with assembly lines in the US. They have the opportunity to onshore in many cases and they seem to be doing that where they can albeit slowly.
It is taking them more time to onshore production from Mexico too. Silao is a huge factory that cranks out a lot of models. They've stood up a huge US factory (Orion) to build EVs but it's going to end up building ICE pickups and SUVs instead. That re-formatting is taking some time, but it's the correct move for now. Looks like their new generation V8 engines will be manufactured entirely in New York, but that's mostly due to massive quality issues with Mexican sourced parts (such as the 6.2L V8 bearings that resulted in a huge recall) but it will likely also help them on tarriffs.
GM bet big on EV production in the US, but they didn't fully commit the way Nissan did.
Posted on 7/22/25 at 10:04 am to lsuconnman
quote:
It looks like a EV messaging and commitment problem.
Bingo. GM can onshore a lot of ICE production if they needed to. Things like the Mexican-built Chevrolet Blazer could move to Spring Hill (TN) since that also builds vehicles on the exact same chassis. So many of their products share everything under the sheet metal with 1 or more other vehicles they sell.
Same with the full sized trucks. They have 2 (and soon 3) US plants cranking those out in massive numbers. They can potentially add shifts to Flint, Fort Wayne, and eventually Orion while reducing shifts for the full sized truck line in Silao (Mexico) to skirt tarrifs and increase the % of domestic production for that massively important product line.
Could be wrong but I think all gas or diesel powered full sized SUV's manufactured by GM for all worldwide markets are supplied by their Arlington, TX plant near Dallas. These would be their highly profitable Tahoe, Yukon, Suburban, and Escalade vehicles.
They are clearly slowing the boost to their EV production capacity.
This post was edited on 7/22/25 at 10:06 am
Posted on 7/22/25 at 2:35 pm to bigjoe1
So.....a US-based automaker chooses to build cars in other countries, then import them back into the US? Sounds like the tariffs are just what was needed! Offshoring American jobs then selling the product back to Americans.
Posted on 7/22/25 at 2:40 pm to bigjoe1
quote:
sapped $1.1 billion from the results.
Just wondering, are they claiming they have paid $1.1B directly to the government in tariffs? Or they are estimating it had a $1.1B effect on their P/L?
Posted on 7/22/25 at 2:41 pm to bigjoe1
Ok
How much did their failure to listen to their customers, their bloated management model, and their funding of failed political ideologies cost them?
How much did their failure to listen to their customers, their bloated management model, and their funding of failed political ideologies cost them?
Posted on 7/22/25 at 6:10 pm to bigjoe1
Should be more.
Posted on 7/22/25 at 6:24 pm to bigjoe1
Screw those bastards and their shitty transmissions and AFM V8 killing bs.
Posted on 7/23/25 at 12:26 pm to GREENHEAD22
Why would vehicles made in the USA cost more due to tariffs, besides a small increase for the materials. They should be at a good advantage over imported vehicles.
They are probably lying to get another handout.
They are probably lying to get another handout.
Posted on 7/23/25 at 12:37 pm to TIGERSby10
quote:
Why would vehicles made in the USA cost more due to tariffs, besides a small increase for the materials. They should be at a good advantage over imported vehicles.
Because they use foreign made parts in almost all of them.
Having said that, another poster has a good summary up above. GM chose to make SUVs in China and Korea, then import them. That and the vehicles made in Silao are likely the bulk of the $1B.
They will now have to look for ways to re-shore the assembly and parts, or will have to find cost savings in their foreign plants. Likely some of both. Every global company plays this same game of shuffling production to avoid tariffs worldwide, and has for decades. Until now, they didn't have to do it for the US market, and our manufacturing was hollowed out as a result. Now, things have changed.
I voted for this.
Posted on 7/24/25 at 10:09 am to greygoose
So.....a US-based automaker chooses to build cars in other countries, then import them back into the US? Sounds like the tariffs are just what was needed! Offshoring American jobs then selling the product back to Americans.
_______
How many will pay a significantly higher priced vehicle based on where it is built? Catchy marketing comments work, but have limits. A $60k truck becomes $75k if 25% higher.
_______
How many will pay a significantly higher priced vehicle based on where it is built? Catchy marketing comments work, but have limits. A $60k truck becomes $75k if 25% higher.
Posted on 7/24/25 at 3:59 pm to bigjoe1
So, they increased domestic sales and china sales?
But then there is this...
Keep making cars no one wants? Bold strategy.
But then there is this...
quote:
Car companies are increasingly shifting their focus to bolstering the core lineup of gas trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade.
quote:
"Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star," GM CEO Mary Barra told analysts Tuesday.
Keep making cars no one wants? Bold strategy.
This post was edited on 7/24/25 at 4:00 pm
Posted on 7/24/25 at 4:01 pm to KWL85
Well this would be one thing to make it cheaper.
quote:
Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News