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GM cuts 2025 profit forecast as expects up to $5 billion impact tariff hit
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GM cuts 2025 profit forecast as expects up to $5 billion impact tariff hit
May 25, 2025 11:15 PM

DETROIT, May 1 (Reuters) - General Motors ( GM ) cut its

2025 profit forecast on Thursday after receiving some clarity

and a reprieve from the White House this week on automotive

tariffs.

CEO Mary Barra told shareholders in a letter that the

company would maintain dialogue with the Trump administration on

trade and other policies as they evolve.

"There are ongoing discussions with key trade partners that

may also have an impact," Barra said.

The Detroit automaker released the forecast two days after

pulling a previous one issued in January that did not take into

account the automotive tariffs, and after the Trump

administration made changes to them.

The automaker expects an annual adjusted core profit of

between $10 billion and $12.5 billion, including a current

tariff exposure of between $4 billion and $5 billion.

GM's previous guidance for earnings before interest and

taxes was between $13.7 billion and $15.7 billion.

It expects to earn an annual net income of between $8.2

billion and $10.1 billion, down its from prior range of $11.2

billion and $12.5 billion.

GM anticipates 2025 full-year capital spending will be

between $10 billion and $11 billion.

In an interview with CNBC Thursday morning, Barra said the

automaker expected to make further announcements on plans to

increase U.S. production.

"We are making a commitment that we are going to bring more

production back to this country to build on what we already

have," Barra said.

Reuters broke the news that GM will increase light-duty

truck production at its Fort Wayne, Indiana, assembly plant.

Barra also said the company is "assuming a pricing

environment that's similar to what it is today," even though

industry estimates find new vehicle prices could increase by

thousands of dollars under tariffs.

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