GM withdraws annual forecast due to tariffs, but reports strong quarterly results; uncertainties bring stock down

From Yahoo Finance: 2025-04-29 06:32:00

General Motors withdrew its annual forecast due to Trump’s trade war, but reported strong quarterly results. The automaker delayed its investor call to assess tariff policy changes, causing shares to fall 1%. GM’s costs increased by $400 million from last year, despite strong business performance. Quarterly revenue rose 2.3% to $44 billion, exceeding expectations.

President Trump plans to reduce auto tariffs by easing levies on foreign parts in U.S.-made vehicles. The Center for Automotive Research estimates the tariffs will cost U.S. automakers $108 billion this year. GM’s positive results follow a 17% increase in U.S. auto sales. The company is pausing share buybacks to assess economic conditions.

Analysts support GM’s decision to withdraw annual guidance amidst tariff uncertainty. The automaker’s revenue exceeded estimates at $44 billion, with adjusted earnings per share of $2.78. GM anticipates growth opportunities in the truck and SUV market. In China, GM saw improvement in equity income.

The auto industry has faced uncertainty due to Trump’s tariff threats, leading to weakened consumer confidence. GM is focusing on quick, efficient actions to mitigate tariff effects. Barclays cut GM’s 2025 earnings estimates by 40% based on volume and tariff impact. GM shares have dropped 12% this year, compared to Ford’s 3% gain.

Read more: GM pulls forecast due to tariffs as nervous consumers rush to buy