GM lowers 2025 guidance, citing up to $5 billion in tariff exposure
DETROIT — General Motors on Thursday lowered its 2025 financial guidance to include an expected $4 billion to $5 billion impact as a result of President Donald Trump’s auto tariffs.
DETROIT — General Motors on Thursday lowered its 2025 financial guidance to include an expected $4 billion to $5 billion impact as a result of President Donald Trump’s auto tariffs.
The Detroit automaker said its new guidance includes adjusted earnings before interest and taxes of between $10 billion and $12.5 billion. That compares with its former guidance, which did not take tariffs into account, of $13.7 billion to $15.7 billion.
GM’s 2025 guidance also includes net income attributable to stockholders of $8.2 billion to $10.1 billion, down from $11.2 billion to $12.5 billion, and adjusted automotive free cash flow of between $7.5 billion and $10 billion, down from $11 billion to $13 billion. The company did not change its capital spending target of between $10 billion and $11 billion, including its battery joint ventures.
The Detroit automaker also expects to spend $500 million during the second quarter to fix roughly nearly 600,000 SUVs and trucks that were recalled this week in the U.S. due to engine issues.
“Importantly, GM’s business is growing and fundamentally strong as we adapt to the new trade policy environment, further strengthen our supply base, and drive EV profitability,” GM CEO Mary Barra said in a shareholder letter on Thursday.
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