General Motors (GM) will report first-quarter earnings ahead of the bells held Tuesday morning as the largest of the three major automakers fight President Trump’s auto tariffs. Investors are driving GM in light of increasing trade wars, in view of increasing trade wars.
General Motors is expected to report revenue of $43.03 billion in the first quarter, down 11% from a year ago. Analysts expect GM to post adjusted earnings per share of $2.57 for the first quarter and adjusted net income of $2.758 billion, 21.4% lower than the height of the same period last year.
However, GM's global revenue and profit declines are not due to underselling sales in the United States. GM said U.S. sales in the first quarter rose 17% year-on-year to 693,363 units, powered by trucks and electric vehicles, and the company is on the company’s four brands: Chevrolet, Cadillac, Buick and GMC.
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General Motors said it ranked first in overall full-size pickup truck sales, including Chevrolet Silverado and GMC Sierra models, with more than 200,000 units sold, its best first quarter since 2007. GM said the full-size pickup also has its best first quarter since 2007, with sales of its models Tahoe, Tahoe, Suburban, Suburban, Suburban, Suburban, Suburban, Suburban, Suburban, and GMC Yukon.
Industry-wide sales grew in the first quarter, especially in March, as buyers tried to raise Trump's 25% tariff on imported vehicles, which began on April 2. However, this sales have fueled sales, ongoing tariffs on automatic imports and ongoing tariffs on auto parts, which may begin on May 2, which may start to worry automakers and investors.
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At the end of the fourth quarter, GM expects the 2025 EBIT (earnings before interest expenses and taxes) to be priced at $13.7 billion to $15.7 billion. The diluted and adjusted EPS is $11 to $12 for the year.
At the time, GM did not model the impact of potential tariffs or loss of federal electric vehicle tax credits in its guidance. General Motors CEO Mary Barra said in an interview with Yahoo Finance that GM does not think these policy moves will happen, but will adjust them based on the results.
Although GM did not model these programs in its forward-looking guidance, it does have a "script" and prepare for various results based on what Trump's policy might take, GM CFO Paul Jacobson said on a phone call with reporters after the fourth quarter results.
Analysts such as Barclays’ Dan Levy believe automakers like GM and Ford will beat the results, but the 2025 guidance may be withdrawn due to tariff uncertainty.
Given Ford's huge U.S. manufacturing industry, Ford may be OK, but GM will suffer losses due to relying on Canada, Mexico and South Korea to build cars.
"GM may only be able to add about 1 million units to Fort Wayne, offsetting a small portion of ~400,000 units of LD (lightweight) pickups," Levy said. "In addition, GM has to deal with its affordable lineup, which comes from South Korea and MX, accounting for about a third of GM's sales in the U.S.." We believe that vehicles from South Korea (Trax, Trax, Traxblazer, Envista) are especially risky - but GM has very little timely product capacity in the United States. ”
"It wouldn't surprise us if GM stopped importing these vehicles, and tariffs made these products economically unviable," Levy added.
There is no doubt that import fees for light trucks and losses of vehicles imported from South Korea will hurt GM's top and bottom line.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him x Then continue Instagram.
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