Key Facts
• On July 22, 2025, GM announced its Q2 financial results.
• Revenue fell 2% year-over-year to $47.12 billion (approx. ¥6.9 trillion).
• Net profit dropped 35% to $1.895 billion (approx. ¥280 billion).
• Tariffs under the Trump administration caused a $1.6 billion cost increase.
• GM imports 50% of U.S. vehicle sales from Mexico and South Korea.
• Full-year tariff-related costs are projected at $4–5 billion.
• GM’s global vehicle sales rose 7% to 1.54 million units.
• Strong performance in China and U.S. electric vehicle (EV) sales.
• EV tax credit of $7,500 to end by September 2025, potentially slowing sales.
• GM plans a $4 billion investment in three U.S. factories to boost production.
• CEO Mary Barra emphasized adapting to trade and tax policy changes.
• GM’s stock price fell over 7% during trading on July 22, 2025.
Summary
General Motors (GM) reported a 35% drop in net profit for Q2 2025, citing a $1.6 billion cost increase due to tariffs imposed by the Trump administration. Revenue declined 2% year-over-year to $47.12 billion. Despite a 7% rise in global vehicle sales, including strong performance in China and U.S. EV markets, the company faces challenges as a $7,500 EV tax credit is set to expire by September 2025. GM anticipates $4–5 billion in full-year tariff-related costs and has announced a $4 billion investment in U.S. factories to strengthen domestic production. CEO Mary Barra reaffirmed GM’s commitment to adapting to evolving trade and tax policies. Following the earnings announcement, GM’s stock price dropped over 7%.
