GM Revamps Strategy Amid Tariff Relief and Shifting EV Market

General Motors has revised its 2023 profit outlook upwards due to easing tariff pressures and refining its electric vehicle strategy. CEO Mary Barra highlighted a shift in EV adoption timelines, resulting in reduced losses from 2026. The auto giant reported better-than-expected earnings, though challenges remain.

General Motors announced an upward revision in its annual profit expectations, bolstered by declining tariff impacts and a strategic shift in its approach to electric vehicles. The company reported that its adjusted core profit now ranges between $12.0 billion and $13.0 billion, increased from a previous projection of $10.0 billion to $12.5 billion.

CEO Mary Barra, in a letter to shareholders, explained the focus on EV investments aligning with stringent federal standards. However, following regulatory changes, GM anticipates lower near-term EV adoption, planning to mitigate associated losses by 2026. Despite this, electric vehicles remain central to GM's future vision.

While earnings exceeded Wall Street expectations, with quarterly adjusted EPS at $2.80, revenue saw a slight decline year-over-year to $48.6 billion. GM anticipates potential challenges from supply chain disruptions and additional EV-related expenses but sees relief from recent U.S. tariff policy adjustments, which aim to enhance competitiveness for U.S.-produced vehicles.

(With inputs from agencies.)