Alright, so here we go. It’s a wild ride, hold on tight.
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Okay, so here’s the scoop—GM just kinda threw everyone a curveball. They chopped down their 2025 profit dreams, like, by a whole 20% or more. And it sounds wild, but tariffs are hiking their costs by somewhere between four to five billion dollars this year. I mean, seriously, thanks a lot, tariffs.
Anyway—wait, was I saying something? Oh yeah—so during this call with a bunch of analysts, GM honchos said they’re now expecting to rake in, like, $8.2 billion to $10.1 billion. Which, let’s be real, is way lower than they were hoping for. I could almost hear the disappointment through the phone. Mary T. Barra, who’s steering the GM ship, reassured everyone that the business is solid as they dance around these new trade moves. Quite the tightrope walk there, huh?
And, in April, a twist came along when President Trump slapped a big ol’ 25% tariff on imported cars. Plus, he’s getting all set to extend this to auto parts too, starting Saturday. But, oh, there’s a twist in this twist—he tweaked the tariff rules a bit, throwing automakers a bone with some two-year relief on parts.
Barra also chimed in about GM’s plan to cushion about 30% of the tariff hit by ramping up U.S. production, jotting down expenses, and getting suppliers to increase their part-making here. Oh, and this bit caught my attention—recollection of them beefing up truck output at their Indiana plant, trimming the imports from our northern and southern neighbors by a good chunk. Like 50,000 trucks more, to be precise. Battery modules are another thing they’re cooking up more locally now, boosting that “Made in the USA” badge for their electric rides.
Then there’s the ding from those overseas-made vehicles—like two billion bucks in extra costs from the likes of Canada, Mexico, and South Korea. I’m no analyst, but that’s some pocket change gone missing.
Speaking of analysts, they’ve got some grim predictions: brace yourself for pricier new rides. We’re talking a 0.5% to 1% bump—ouch. G.M.’s CFO, Paul Jacobson, spilled that tidbit, mentioning it was a shift from expecting prices to dip 1% to 1.5%. I mean, even numbers don’t want to sit still anymore.
But GM’s not alone in this. Mercedes-Benz jumped on the bandwagon—well, auto-wagon with their Alabama factory plans to roll out a newbie vehicle. They’re all about that USA love right now. No spoiler alerts on the car’s details though—just that it’ll be made to charm the U.S. roads by 2027. Patience, my friends, patience.
The Tuscaloosa spot is where the magic happens, mostly luxury SUVs—some electric ones too—geared up for American roads and beyond. Feels like everyone’s making a play to dodge tariff potholes these days. Oh, and some guy named Jack Ewing told me about it. Probably knows more than me.
Phew. What a ride, huh?
