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.