General Motors reduced his earning forecast for 2025 on Thursday by more than 20 percent and said that Trump administration rates would increase their costs by $ 4 billion to $ 5 billion this year.
At a telephone conference with analysts, GM executives said the company now expects to win $ 8.2 billion at $ 10.1 billion this year, below a previous forecast or $ 11.2 billion to $ 12.5 billion.
“The GM business is fundamental as we adapt to the new commercial policy environment,” said company executive director Mary T. Barra.
In April, President Trump imposed tariffs or 25 percent on imported vehicles and will begin to impose the same duty on imported cars imported on Saturday. On Tuesday, the president modified how tariffs apply to give some relief to car manufacturers, including partial reimbursements of tariffs in imported parts for two years.
Mrs. Barra said that GM hopes to compensate about 30 percent of the impact of tariffs by increasing production in US plants, reducing costs and working to suppliers to raise their national production of parts and components.
GM had previously said that truck production was increasing in a plant near Fort Wayne, Ind., Which will reduce the number of vehicles that amount to Canada and Mexico. Mrs. Barra said that production at the Fort Wayne factory would increase by about 50,000 trucks this year.
He also said that GM now plans to make more battery modules in his US plants to raise the portion of domestic content in his electric vehicles.
Around $ 2 billion in increases in costs related to the rate will come from vehicles that are held in Canada, Mexico and South Korea and will be sold in the United States.
Analysts have predicted that tariffs will add thousands of dollars to the cost of new cars and trucks, and something or all that would be transmitted to consumers. In the call, the financial director of GM, Paul Jacobson, said the company now expects the new vehicle prices to increase 0.5 percent to 1 percent this year, he added. Previously, the company had predicted that prices would fall by 1 percent to 1.5 percent.
Other car manufacturers also plan to produce more vehicles in the United States. Mercedes-Benz said Thursday that he would build a new vehicle in a Alabama factory as part of what the German car manufacturer called a “commitment of depth” with manufacturing in the United States.
Although the company did not mention rates, Mercedes and other car manufacturers have been affected in recent weeks to emphasize how many cars are already built in the United States and their plans to make more. Mercedes did not provide details about the car, except to say that this would be a new design adapted to the US market and start production in 2027.
The company’s factory near Tuscaloosa, Alabama, brings together luxury sports vehicles, including electrical models, for sale in the United States and exports to other markets.
Jack Ewing Contributed reports.
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