Agility is a key strength
Digest more
General Motors told investors on Tuesday that it took a $1.1 billion hit from tariffs last quarter. Stellantis, which makes Chrysler, Dodge and Jeep vehicles, told investors on Monday that it felt
General Motors braces for higher tariffs and capex, maintains 2025 guidance, and projects $7.5-$10 billion in free cash flow despite volume headwinds.
U.S. automakers are concerned about President Donald Trump's agreement to tariff Japanese vehicles at 15%, saying they'll face steeper import taxes on steel, aluminum and parts than their competitors.
General Motors said tariffs slashed its second-quarter income by more than $1 billion, and other companies pointed to import duties to explain smaller profits.
General Motors valuation remains attractive at 5.0X P/E forward earnings, with solid EV momentum and upside if tariffs ease. Learn more on GM stock here.
General Motors is the latest U.S. auto giant to say tariffs have taken a chunk from their earnings. The company beat earnings expectations on Tuesday, but reported a decline in second-quarter profits, including a $1.1 billion hit as a result of hefty import taxes.
General Motors said it expects the tariff impact to worsen in the third quarter, with a $4 to $5 billion hit to its bottom line.
General Motors has delivered a warning to corporate America, publishing second-quarter earnings that included a shocking impact from auto-industry tariffs on its bottom line.