General Motors has reported a sharp drop in profits as it took a $1.1bn hit in Q2 due to the impact of trade tariffs. It said the net impact reflected ‘minimal mitigation offsets’. Net income was down by over a third on last year at $1.9bn, despite higher global unit sales (Q2 2025 1.54m; Q2 2024 1.43m).
Quarterly revenues for GM were reported at $47.1bn versus $48bn in the same quarter last year. Adjusted EBIT was down to $3bn from $4.4bn in Q2 last year. Adjusted EBIT margin was down to 6.4% from 9.3% last year.
Q2 GAAP operating profit was reported at $2.1bn versus $3.9bn last year.
CEO Mary Barra said in a letter to shareholders that GM “positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.”
Barra highlighted $4 billion of new investment in GM’s US assembly plants to add 300,000 units of capacity for high margin light-duty pickups, full-size SUVs and crossovers.
“The capacity begins coming online in just 18 months, after which we project building more than two million vehicles in the US each year as we scale,” she said.
GM left its 2025 guidance unchanged and said the 2025 gross tariff impact is unchanged at $4-$5bn. However, it also said it is ‘making solid progress to mitigate at least 30% of this impact through manufacturing adjustments, targeted cost initiatives, and consistent pricing.’
