by The Impact of Tariffs on General Motors
General Motors has suffered significant financial losses due to the current tariff regime. In the second quarter, the company lost $1.1 billion, and total losses for the year could reach $5 billion. This has impacted financial results, although GM’s revenue amounted to $47.1 billion.
Besides tariffs, the company noted a 111% increase in electric vehicle sales compared to last year. Chevrolet became the second best-selling electric car brand in the US, and Cadillac the leader among premium brands. However, GM management acknowledged that traditional internal combustion engine vehicles will remain relevant longer than expected.
We believe the long-term future belongs to profitable electric vehicle production, and this remains our primary goal
In North America, GM recorded revenue of $39.5 billion thanks to record sales of crossovers and pickups. The average vehicle price exceeded $51,000, indicating stable demand. At the same time, investments in electric vehicles continue, despite the cancellation of government incentives for “clean” cars.
The tariff situation could lead to further increases in car prices, which will affect end consumers. GM, like other manufacturers, is forced to adapt to regulatory changes while maintaining competitiveness in the market. The growth in electric vehicle sales indicates the success of the strategy, but the transition period will require flexibility from the company.
