GM reported record crossover sales and strong demand for trucks.
- Tariffs cost GM $1.1 billion in the second quarter and could cost $5 billion this year alone.
- The added fees weighed on the automaker, which reported revenues of $47.1 billion.
- GM is committed to electric vehicles, but noted ICE models now have a “longer runway.”
President Trump’s trade war continues to cause self-inflicted injuries as American companies are getting slammed by higher fees. This includes General Motors, which revealed tariffs cost them $1.1 billion in the second quarter.
All told, the automaker is expecting tariffs to cost them between $4 and $5 billion this year alone. That’s a staggering figure and one that will likely result in price increases.
More: GM Needs A Corvette Turnaround As Sales Crash In First Half
Tariffs aside, the company earned $47.1 billion in revenue in the second quarter and had an adjusted EBIT (Earnings Before Interest and Taxes) of $3 billion. GM went on to note the latter figure decreased primarily due to tariffs.
In North America, the company reported net revenues of $39.5 billion. This was aided by record crossover sales as well as strong demand for trucks. U.S. dealer inventories were also down in Q2, while EV sales were up significantly.
Other notable takeaways include lower than average incentive spending and average transaction prices in excess of $51,000. The automaker said this shows “robust demand across our portfolio.”
While the elimination of the clean vehicle credit will likely cause chaos, GM noted second quarter EV sales were up 111% from a year ago and they controlled 16% of the U.S. EV market.
Chevrolet became the second best-selling EV brand as sales jumped 146% in Q2. This is largely due to the affordable Equinox EV, which is the third best-selling electric vehicle in America so far this year. The company went on to note Cadillac is the best-selling electric luxury brand and the 5th largest EV brand in America – including both luxury and mainstream brands.
In a letter to shareholders, CEO Mary Barra acknowledged slower EV growth. However, she said “We believe the long-term future is profitable electric vehicle production, and this continues to be our north star. As we adjust to changing demand, we will prioritize our customers, brands, and a flexible manufacturing footprint, and leverage our domestic battery investments and other profit-improvement plans.” Speaking of flexibility, Barra noted ICE models have a “longer runway” than initially expected.
Lead image credit: White House photo
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