Trump's Trade War Has Resulted in a Loss of Over $1 Billion for GM | Carscoops
GM announced record sales of crossovers and strong demand for trucks.
15 hours ago
by Michael Gauthier
Tariffs resulted in a $1.1 billion loss for GM in the second quarter and may cost the company up to $5 billion this year.
These additional charges impacted the automaker, which reported $47.1 billion in revenue.
GM is dedicated to electric vehicles but acknowledged that internal combustion engine (ICE) models have a "longer runway."
President Trump’s trade war continues to inflict self-harm as American companies face increased fees. General Motors disclosed that tariffs cost them $1.1 billion in the second quarter.
Overall, the automaker predicts tariffs will result in losses of between $4 and $5 billion this year, a substantial amount that may lead to price hikes.
More: GM Requires A Corvette Revamp Amid Sales Declines In First Half
Excluding tariffs, the company reported $47.1 billion in revenue for the second quarter and an adjusted EBIT (Earnings Before Interest and Taxes) of $3 billion, which declined mainly due to tariffs.
In North America, GM reported net revenues of $39.5 billion, boosted by record crossover sales and a strong demand for trucks. U.S. dealer inventories decreased in Q2, while EV sales saw a significant increase.
Other key points include lower-than-average incentive spending and average transaction prices exceeding $51,000, indicating "robust demand across our portfolio."
Although the removal of the clean vehicle credit may create challenges, GM highlighted that second-quarter EV sales were up 111% compared to the previous year, and the company held 16% of the U.S. EV market.
Chevrolet emerged as the second best-selling EV brand with a 146% sales increase in Q2, primarily due to the affordable Equinox EV, which ranks as the third best-selling electric vehicle in America this year. Additionally, Cadillac was noted as the top-selling electric luxury brand and the fifth largest EV brand in the country, encompassing both luxury and mainstream segments.
In a letter to shareholders, CEO Mary Barra acknowledged the slower growth of EVs. However, she reassured, "We believe the long-term future is profitable electric vehicle production, and this continues to be our guiding principle. As we adapt to evolving demand, we will focus on our customers, brands, and adaptable manufacturing strategies, while capitalizing on our domestic battery investments and other profit-enhancement initiatives." Regarding flexibility, Barra mentioned that ICE models now have a "longer runway" than previously anticipated.
Lead image credit: White House photo
Other articles
Tesla's Cybertruck Incentives Appear to Be Panic Sales Disguised as Promotions | Carscoops
Military personnel, first responders, educators, and students are also eligible for a $1,000 discount on a new Tesla.
The Electric M3 Marks the Dawn of a New Era in BMW Design | Carscoops
The iM3 claims to offer a new design, four motors, and the highest power output seen so far in an M3 model.
Lucid Air Introduces New Feature That Only a Fool Would Use | Carscoops
If you're in a hurry or not very smart, you can use a Tesla Supercharger at a very slow rate.
This Might Be the Most Precious Ferrari F40 in the World | Carscoops
Only 19 instances of the extraordinary F40 LM were ever produced.
Trump's Trade War Has Resulted in a Loss of Over $1 Billion for GM | Carscoops
GM announced unprecedented crossover sales along with robust demand for trucks.