General Motors executives are closely tracking President Trump’s plans to impose a tariff on imports from Canada and Mexico, but the company has not yet made any major changes to its strategy in North America.
The auto company has collected a “large -scale game book” from possible options, but it will not put it in place “until the world changes significantly, and we see a permanent level of customs tariffs.” Correspondents in a group call Monday evening.
He added: “We have prepared for that and we want to make sure that we are wise and we do not exaggerate his reaction.”
Mr. Trump said last week that he intends to impose a 25 percent tariff on goods from Canada and Mexico, starting on Saturday, February 1. In those countries, the prices of many vehicles sold in the United States may increase.
GM produced some of them, including Chevrolet Silvrado and GMC Sierra Pickup, as well as the Chevrolet Moderation Sports Carbcke, and all major profit sellers and great sources of profit for the company. GM also produces some Silverdos and electricity connection trucks in Canada.
In a separate phone call on Tuesday, Mary T. said. Para, CEO of General Motors, the company can increase production in American Beck App truck factories and send more trucks it produces in Canada and Mexico to other countries, rather than exporting them to the United States.
“We have the ability in the United States to convert some of it,” she said. “We are working through the supply chain, logistics network and assembly plants so that we are ready to mitigate the effects of the range” for definitions.
General Motors said on Tuesday that she had lost $ 3 billion in the last three months of 2024, which was crowned from a non -crocple expense of $ 4 billion in restructuring its joint operations in China. The company’s revenues increased in a quarter of 11 percent.
Over the course of 2024, General Motors recorded a $ 6 billion profit, a decrease of $ 10.1 billion in 2023. Almost all profits came from North America.
Mr. Jacobson said that General Motors is expected to win between $ 11.2 billion and $ 12.5 billion of net income in 2025, a expectation that does not include the potential impact of definitions or other policy changes.
He also said that General Motors expect a modest decrease in the sales of internal combustion cars this year.
GM shares closed 9 percent on Tuesday, especially regarding concerns about definitions. “Trade policies can be harmful to demand and thus pressure profits,” said Jeff Windaw, an Edward Jones analyst, in a research note.
In its profit report, the company said that its electrical business is making progress to become profitable. Mr. Jacobson said that the company produced about 189,000 electric cars in North America last year – less than its goal of 200,000 – and hopes to produce about 300,000 in the region in 2025.
General Motors electric car business may also suffer if Mr. Trump and the Republicans in Congress cancel or reduce tax exemptions dating back to the Biden era that make these cars and trucks more affordable and give companies incentives to manufacture batteries in the United States.
Ms. Para said that the company has confirmed in her talks with Congress and the White House the importance of a strong manufacturing sector and an American leadership in advanced technologies. “We believe that the president wants to use politics and regulations that will enhance and do not harm local manufacturers such as General Motors.”
She also said that General Motors has a wide range of internal combustion engine and electric cars, and it is confident that it will continue to increase the company’s American market share.
Because of the strong performance of the company in North America, General Motors said it would pay bonuses of up to $ 14,500 each with 46,000 members of the United Auto Labor who work in its American factories.
