DETROIT — General Motors announced Thursday that it is revising its earnings forecast for 2025, projecting a potential financial impact of $4 billion to $5 billion from tariffs imposed under President Donald Trump’s administration. The revised outlook specifies adjusted earnings before interest and taxes in the range of $10 billion to $12.5 billion, a decrease from the previous estimate of $13.7 billion to $15.7 billion.
The automaker’s updated guidance now includes net income attributable to stockholders between $8.2 billion and $10.1 billion, reduced from an earlier forecast of $11.2 billion to $12.5 billion. Additionally, adjusted automotive free cash flow is now expected to fall between $7.5 billion and $10 billion, down from a prior estimate of $11 billion to $13 billion. GM is maintaining its capital spending target, which remains set between $10 billion and $11 billion.
Despite the adjustments, GM CEO Mary Barra emphasized the company’s strong growth trajectory in her letter to shareholders. She noted that GM is adapting to the current trade policy landscape while fortifying its supply base and enhancing profitability in electric vehicle (EV) production.
The modified guidance reflects the new considerations stemming from the Trump administration’s recent tax policy adjustments, which provide some rebates for automakers using U.S.-made parts and lessen the accumulation of tariffs on the industry.
Earlier this week, GM reported surging earnings in its first quarter that exceeded analysts’ expectations. However, the company opted to delay its investor call to address anticipated changes in tariff structures. During an interview with CNBC, Barra highlighted the firm’s proactive efforts to mitigate the effects of these tariffs.
“Our team has been refining our supply chain since 2019, working to boost resilience and increase the percentage of U.S.-sourced components by 27%,” she remarked, indicating that the company has multiple opportunities to further enhance domestic production.
When asked about the possibility of shifting production from Mexico to the United States, Barra refrained from providing specifics. Instead, she underscored GM’s strategy to optimize existing manufacturing assets, which include 11 major assembly sites in the United States employing tens of thousands of workers.
“We plan to leverage our current facilities, which gives us the capability to expand production at many of these sites. This approach allows us to ramp up operations more efficiently than starting from scratch,” she explained, pointing towards the company’s agile manufacturing approach in response to market demands.
As General Motors navigates these challenges, its commitment to innovate and invest in U.S. operations remains evident, with expectations for more announcements in the near future as the landscape becomes clearer.