General Motors recently announced a decline in profits for the second quarter, attributing a $1.1 billion hit to the impact of trade tariffs. Despite higher global unit sales compared to the previous year, with Q2 2025 seeing 1.54 million units sold and Q2 2024 at 1.43 million, net income dropped by over a third to $1.9 billion.
Quarterly revenues for GM were reported at $47.1 billion, down from $48 billion in the same quarter last year. Adjusted EBIT also saw a decrease to $3 billion from $4.4 billion in Q2 last year, with the adjusted EBIT margin falling to 6.4% from 9.3%.
CEO Mary Barra addressed shareholders in a letter, emphasizing GM’s efforts to position the business for long-term profitability amidst changing trade and tax policies and a rapidly evolving tech landscape. Barra highlighted a $4 billion investment in US assembly plants to increase capacity by 300,000 units for high-margin light-duty pickups, full-size SUVs, and crossovers. This increased capacity is expected to come online within 18 months, with projections to build over two million vehicles annually in the US.
Despite the challenges posed by trade tariffs, GM has left its 2025 guidance unchanged, maintaining a gross tariff impact of $4-$5 billion. The company stated that it is making progress in mitigating at least 30% of this impact through manufacturing adjustments, cost initiatives, and consistent pricing strategies.
In addition to its financial updates, GM also highlighted the Just Auto Excellence Awards, which celebrate innovation, leadership, and impact in the automotive industry. By entering the awards, companies can gain recognition, elevate their industry profile, and showcase their achievements among industry leaders. The Excellence Awards provide an opportunity for businesses to stand out and position themselves as drivers of automotive industry advancements.
Overall, GM remains focused on adapting to market challenges, investing in future growth opportunities, and maintaining a strong position in the automotive industry.
