Mary Barra, president and chief executive officer of General Motors Co., at a press conference at the Hudson’s Building in Detroit, Michigan, United States, on Monday, April 15, 2024.
Jeff Kowalsky | Bloomberg | Getty images
DETROIT – General Motors Thursday, reduced its profits forecast in 2025 to include a possible impact of $ 5 billion to $ 5 billion due to the automotive rates of President Donald Trump.
Detroit’s automaker said its new guidelines included adjusted profits before interest and tax between 10 and 12.5 billion dollars. This is compared to its former directives, which did not take into account the prices, from $ 13.7 billion to $ 15.7 billion.
GM directives in 2025 also include a net profit attributable to shareholders of $ 8.2 billion to $ 10.1 billion, compared to $ 11.2 billion at $ 12.5 billion and an automobile available cash flow between $ 7.5 billion and $ 10 billion, $ 11 billion Dollars. The company has not changed its target of capital expenditure between $ 10 billion and $ 11 billion.
“Above all, GM’s activities are growing and fundamentally strong while we adapt to the new commercial policy environment, let us further strengthen our supply base and stimulate the profitability of the EV,” the CEO of GM Mary Barra said on Thursday in a shareholder letter.
The directives take into account “the positive impact” of changes in the Trump administration this week at certain prices which include the reimbursement of car manufacturers for certain American parts and the reduction in “stacking” of the prices on each other for industry.
GM published on Tuesday the results of the first quarter which beat the expectations of Wall Street, but delayed its call to investors and updated the details of the advice in the expected modifications of the car rates.
Barra said Thursday that Phil Lebeau de CNBC that the company tried to compensate as much increased costs as possible from prices.
“Absolutely, we can make changes. We have been working on our supply chain since 2019, to be more resilient,” said Barra, citing a 27% increase in American parts. “We have a lot of opportunities while we continue to work with our supply base to increase American content. You will see more announcements from us now that we have this clarity to be able to reinvest in the United States”
Barra refused to say if the company would pass the production of factories in Mexico in the United States, it said that the company would use its current assets. This includes 11 large assembly factories in the United States which employ tens of thousands of workers.
“We are going to take advantage of this imprint that we have because we have the capacity to add an ability to many of these plants. So we can do it effectively, and this will allow us to do it faster than if we were going to start with a green field,” said Barra.
