General Motors Cuts 2025 Guidance Amid $4–5 Billion Tariff Impact

On May 1, 2025, General Motors (NYSE: GM) lowered its full-year 2025 financial outlook, citing an estimated $4.0 to $5.0 billion impact from new tariffs. Key updates include:

- Net income now expected at $8.2–$10.1 billion (down from $11.2–$12.5 billion)
- Adjusted EBIT revised to $10.0–$12.5 billion (down from $13.7–$15.7 billion)
- Automotive operating cash flow now projected at $17.3–$20.8 billion (down from $21.0–$24.0 billion)
- Adjusted automotive free cash flow reduced to $7.5–$10.0 billion (from $11.0–$13.0 billion)
- Adjusted EPS outlook lowered to $8.25–$10.00 from a prior range of $11.00–$12.00

Capital spending guidance remains unchanged at $10.0–$11.0 billion, including investments in battery joint ventures.

CEO Mary Barra and CFO Paul Jacobson are hosting a conference call to discuss Q1 results and the revised guidance. Additional materials and non-GAAP reconciliations are available on GM’s investor website.

GM releases 2025 first-quarter results and reschedules conference call to Thursday, May 1

Auto Stocks Tumble as Tariff Tensions Mount; Investors Turn to Dealers, Domestic Producers

A sharp rise in tariffs has hit the auto industry hard, dragging the S&P 1500 Automobiles and Components Index down nearly 40% this year. The 25% tariff, introduced by the Trump administration, targets cars and auto parts imported into the U.S., with credits for domestically produced components. The policy aims to boost U.S. production, but it has brought short-term turbulence for automakers, suppliers, and investors.

Imported vehicles, which made up about half of U.S. sales in 2024, are now significantly more expensive, with average prices nearing $48,000. In response, several automakers have implemented import surcharges, paused production, raised prices, and announced layoffs. Fewer dealer incentives and longer car ownership cycles are expected as a result.

Amy Ge, manager of the Fidelity® Select Automotive Portfolio (FSAVX), is leaning toward U.S. auto dealers and parts retailers, citing their relative insulation from direct tariff impacts. She believes used car prices may remain high due to tighter new car supply, benefitting dealer margins. Ge also notes that domestic electric vehicle (EV) makers and luxury brands with in-country production may have a competitive edge under current policy conditions.

While some industry players are adjusting to the new landscape, many face ongoing uncertainty as the full impact of tariffs, trade negotiations, and possible exemptions remains unclear. Investors are advised to prepare for continued volatility across the auto sector.

Source: www.fidelity.com

General Motors Reports Strong Q1 Sales in China with Significant Growth in EVs and Hybrids

General Motors and its joint ventures delivered over 442,000 vehicles in China during the first quarter of 2025, marking positive year-over-year sales growth and the third consecutive quarter of market share gains.

Sales of new energy vehicles (NEVs)—including battery electric vehicles (BEVs) and plug-in hybrids (PHEVs)—rose by 53.2% compared to the same period last year. GM plans to expand its NEV portfolio in China further this year with the introduction of extended range electric vehicles (EREVs), ensuring that every new local launch in 2025 includes at least one NEV variant.

Product highlights in Q1 included:
- The Buick GL8 MPV family leading the premium MPV segment with 24,000 units sold. A new PHEV version of the GL8 Lu Shang is expected to launch in Q2.
- Buick LaCrosse deliveries more than doubled year-over-year.
- Buick Envision Plus sales more than tripled.
- The Wuling Hong Guang MINIEV continued its success with a new four-door version, which contributed to over half of the model's 87,000 deliveries.

GM’s premium import business, The Durant Guild, began Chevrolet Tahoe deliveries in March. The platform is expanding its sales footprint through Brand Centers and new Experience Centers offering end-to-end services.

Steve Hill, GM senior vice president and president of GM China, said, “Strong performance in Q1 has set a solid foundation for our sustainable and profitable growth throughout 2025. We will continue to build momentum by enhancing product competitiveness, delivering exceptional customer experiences, and exploring new growth opportunities.”

GM continues to strengthen its position in China through a diverse portfolio that includes both gasoline-powered and new energy vehicles across its Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brands.

GM posts 17% Q1 sales growth on strength in trucks, SUVs, and EVs

General Motors announced that its U.S. sales increased 17% in the first quarter, with double-digit increases across all four of the company’s brands. For the quarter, GM led the U.S. automotive industry in total, retail, and fleet sales.

GM continues to be the market leader in full-size pickups and SUVs. We expect GM to be again the #2 seller electric vehicles in the U.S. with sales up 94% in the quarter.

Chevrolet sales were up 14%, with the best first quarter since 2019. Chevy is the fastest growing EV brand in the U.S., led by Equinox EV and Blazer EV. Cadillac retail sales were up 21%, with EVs up 37%. GMC had its best Q1 ever, with sales up 18%. Buick posted its best Q1 since 2007, with sales up 39%.

“GM’s sales growth outpaced every other major automaker , and the driving force is our portfolio,” said Rory Harvey, GM executive VP and president of global markets. “We're the industry leader in trucks and affordable small SUVs, Cadillac is growing significantly in luxury, and we have the broadest portfolio of EVs in the industry.”

GM Announces 2025 Q1 Earnings Conference Call Details

General Motors (NYSE: GM) will release its first-quarter 2025 financial results on Tuesday, April 29, 2025, at approximately 6:30 a.m. ET, followed by a conference call at 8:30 a.m. ET.


Financial materials will be available on GM’s Investor Relations website in the Earnings Releases section.

Conference call details are as follows:

1-800-857-9821 (U.S.)
1-517-308-9481 (international/caller-paid)
Conference call passcode: General Motors
Please dial in at least 15 minutes in advance to ensure a timely connection to the call. An audio replay will be available on the GM Investor Relations website in the Events section.

General Motors is expanding its partnership with NVIDIA to enhance AI-driven vehicle technology, manufacturing, and robotics. GM will use NVIDIA Omniverse for digital twins of assembly lines, improving efficiency and reducing downtime. The company is also integrating NVIDIA DRIVE AGX for advanced driver-assistance systems.

AI will optimize precision welding, material handling, and automation, freeing workers to focus on craftsmanship. GM aims to develop unified software for vehicles, enabling over-the-air updates and features like hands-free driving with Super Cruise. Looking ahead, GM plans to launch personal autonomous vehicles, further advancing AI-driven mobility.

General Motors (GM) announced an increase in its share repurchase program to a total of $6.3 billion, with $4.3 billion remaining after executing a $2.0 billion accelerated share repurchase (ASR) agreement. The ASR will involve GM repurchasing shares from Barclays and J.P. Morgan Chase, with final settlement expected by June 30, 2025.

Additionally, GM plans to raise its quarterly dividend by $0.03 per share, beginning with its next expected dividend declaration in April 2025. The company remains focused on strategic capital allocation to enhance shareholder value.

GM's filing also included forward-looking statements, outlining potential risks such as supply chain disruptions, inflationary pressures, regulatory challenges, and competition in the electric vehicle market. The company reaffirmed its commitment to operational efficiency and financial discipline while navigating the evolving automotive landscape.

General Motors (GM) announced its 2024 financial results, reporting full-year net income attributable to shareholders of $6.0 billion and EBIT-adjusted of $14.9 billion. Fourth-quarter results included a net loss of $3.0 billion, primarily due to over $5 billion in special charges. These charges included $4 billion in non-cash restructuring and impairments related to certain China Joint Ventures, along with $0.5 billion linked to halting funding for the Cruise robotaxi business.

Despite the fourth-quarter challenges, GM exceeded its guidance for adjusted automotive free cash flow, achieving $14.0 billion compared to an expected $12.5-$13.5 billion range. Full-year diluted adjusted EPS came in at $10.60, surpassing its guidance of $10.00-$10.50. Automotive operating cash flow reached $23.9 billion, within the guided range.

Looking ahead to 2025, GM forecasts net income attributable to shareholders of $11.2-$12.5 billion and EBIT-adjusted of $13.7-$15.7 billion. Diluted adjusted EPS is projected between $11.00 and $12.00, with adjusted automotive free cash flow expected in the range of $11.0-$13.0 billion. The company plans capital expenditures of $10.0-$11.0 billion, including investments in battery cell manufacturing joint ventures, and anticipates a $0.5 billion cost reduction at Cruise. These projections assume a stable North American policy environment.

Deutsche Bank upgrades General Motors from hold to buy

Cox Automotive reports that electric vehicle (EV) sales in the U.S. reached a record 1.3 million units in 2024, a 7.3% increase compared to 2023. The fourth quarter alone saw a 15.2% year-over-year rise in sales, highlighting strong demand driven by automaker incentives, competitive lease deals, and government programs. Despite Tesla's dominance in the EV market with the Model Y and Model 3 accounting for over 40% of total EV sales, the company experienced a year-over-year decline of over 37,000 units. In contrast, brands like General Motors and Honda significantly increased their sales, contributing to the market's growth.

The hypercompetitive U.S. EV market introduced 17 new models in 2024, with vehicles like the Ford Mustang Mach-E and Hyundai Ioniq 5 gaining traction alongside Tesla's lineup. The introduction of the Tesla Cybertruck also marked a notable milestone. Cox Automotive forecasts further growth in 2025, expecting EVs to comprise nearly 10% of total vehicle sales, driven by the launch of more than 15 new products, improved charging infrastructure, and sustained incentives. Although potential policy changes in Washington could slow this momentum, the market's expansion is expected to continue as buyers move quickly to take advantage of current benefits. (Source: Cox Automotive)