General Motors' executives follow President Trump's plans exactly to impose tariffs for imports from Canada and Mexico, but the company does not make any significant changes to its strategy in North America.
The car manufacturer has put together an “extensive playbook” of possible options, but it will only be “dramatically changes and we see a permanent tariff,” the Chief Financial Officer of the company, Paul Jacobson, told reporter in a telephone conference on Monday evening.
“We prepared ourselves and want to make sure that we are careful and not overreact,” he added.
Last week, Mr. Trump said that from Saturday, February 1, 25 percent for goods from Canada and Mexico wanted to impose in these countries and probably increasing the prices of many vehicles in the United States.
In 2024, GM produced almost 900,000 vehicles in Mexico, more than any other car manufacturer, and most of them were shipped to the USA. Among them are the Chevrolet Silverado and GMC Sierra Pickup trucks as well as the Chevrolet Equinox Sport Utility vehicle, all top sellers and large sources of winning for the company. GM also produces some Vans Silverados and Electric Delivery in Canada.
In a separate conference on the phone on Tuesday, Mary T. Barra, Managing Director of GM, said the United States.
“We have capacities in the United States to change some of them,” she said. “We work in our supply chain, our logistics network and our assembly systems so that we are willing to alleviate short -term effects on the tariffs.
GM said on Tuesday that it has lost 3 billion US dollars in the past three months from 2024, which is due to an effort of $ 4 billion, which is restructured by restructuring its joint venture operations in China. The company's turnover in the quarter rose by 11 percent.
For all 2024, GM made a profit of $ 6 billion of $ 10.1 billion in 2023. Almost the entire profit came from North America.
Mr. Jacobson said GM should earn a net result between 11.2 and 12.5 billion US dollars in 2025, a forecast that does not contain the potential effects of tariffs or other political changes.
He also said that GM had expected a modest decline in sales of sales of vehicles with interior defense times this year.
The GM shares declined by about 10 percent on Tuesday afternoon, mainly due to concerns about tariffs. “Trading policy could have a negative impact on the demand and thus for the pressure of the pressure,” said Jeff Windau, analyst at Edward Jones, in a research note.
In its earnings report, the company stated that its business with electric vehicles had become progress in relation to profitable. The company produced around 189,000 electric vehicles in North America last year – shortly before the target of 200,000 – and hopes to produce around 300,000 in the region in 2025, said Jacobson.
GM's electric vehicle business can also suffer if Mr. Trump and Republicans offer or reduce tax benefits in the congress that make these cars and trucks more affordable and give companies incentives to produce batteries in the USA.
Ms. Barra said that in his conversations with the congress and the White House, the company emphasized the importance of a strong, manufacturing trade and the American leadership in advanced technologies. “We believe that the President wants to use guidelines and regulations that strengthen and do not harm the domestic manufacturers like GM.”
She also said that GM has a wide portfolio of interior detachment engines and electric vehicles and is confident that they will further increase the company's US market share.
Due to the strong performance of the company in North America, GM said that there would be a bonus of up to $ 14,500 at 46,000 members of the United Automobile Workers Union who work in their US plants.