Following President Trump’s decision to give automakers some tariff relief, General Motors (GM) updated its full-year profit guidance but still sees a big tariff hit.
“Incorporating the positive impact of the Administration’s actions this week, we are updating our full-year EBIT-adjusted guidance to a range of $10 billion – $12.5 billion, including a current tariff exposure of $4 billion – $5 billion,” GM CEO Mary Barra said in her shareholder letter published Thursday morning.
GM also said net income attributable to stockholders is projected at $8.2 billion to $10.1 billion, down from $11.2 billion to $12.5 billion, and sees adjusted automotive free cash flow of between $7.5 billion and $10 billion, down from $11 billion to $13 billion.
GM shares traded higher in pre-market trading.
GM released first quarter results earlier this week, and at the time said investors could no longer rely on its prior full year outlook of 2025 EBIT coming in at a range of $13.7 billion to $15.7 billion, with diluted and adjusted EPS seen at $11 to $12 for the year.
GM, which builds a number of vehicles in places like Canada, Mexico, and South Korea, is more exposed to Trump’s tariffs on foreign imports than its rival Ford. Ford assembles 80% of its vehicles in the US, the highest percentage of any US automaker.
Barra promised that GM will do more to offset its tariff exposure.
“Absolutely, we can make changes. We’ve been working on our supply chain since 2019, to be more resilient,” Barra said in an interview with CNBC, citing a 27% increase in parts made in the US.
On the conference call with analysts, Barra noted GM’s Ft. Wayne truck plant increased production by 50K units, and said the automaker will announce plans to further increase US production.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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