Techonology

GM has plans prepared for Trump’s Canada and Mexico tariffs

General Motors officials are closely tracking President Trump’s plans to impose tariffs on imports from Canada and Mexico, but the company is yet to make any major changes in its strategy in North America.

The company’s chief financial officer, Paul Jacobson, stated that the automaker has pulled the “broad playbook” of potential options together, but “until the world changes dramatically, and we move forward a permanent level of tariffs moving forward Let’s see. ” Reporter in a conference call on Monday evening.

He said, “We are preparing for this and want to ensure that we are prudent and do not overract,” he said.

Mr. Trump said last week that he plans to implement 25 percent tariffs on goods from Canada and Mexico starting on Saturday. 1 February. If he follows it through it, the prices of vehicles sold in those countries, and perhaps in the United States have increased.

GM produced around 900,000 vehicles in Mexico in 2024, more than any other car manufacturer, and most were sent to the United States. These include Chevrolet Silverrado and GMC Sierra pickup trucks, as well as the Chevrox Sport-YouTiality Vehicles, a large source of profit for all top-sellers and the company. GM produces some silverdos and electric delivery vans in Canada.

In a separate conference call on Tuesday, Mary T., Chief Executive Officer of GM. Barra said the company can increase production in US pickup truck plants and send trucks that produce in other countries in Canada and Mexico, rather than the United States to export them.

“We have the ability to move some of it in the United States,” she said. “We are working in our supply chain, logistics networks and assembly plants so that we are ready to reduce the effects of the near-tariff.”

GM said on Tuesday that it lost $ 3 billion in the last three months of 2024, which stems from a $ 4 billion noncash expenditure related to the restructuring of its joint venture operations in China. The company’s revenue increased by 11 percent in the quarter.

For all of 2024, GM gave a profit of $ 6 billion below $ 10.1 billion in 2023. Almost all the benefits came from North America.

Mr. Jacobson said that GM is expected to earn between $ 11.2 billion and $ 12.5 billion in net income in 2025, a forecast that does not include the potential impact of tariffs or other policy changes.

He also said that GM expects a slight decline in sales of internal-body vehicles this year.

GM shares closed down 9 percent on Tuesday, mainly on concerns about tariffs. “Business policies can be harmful to demand and thus earning profits in a research note,” Jeff Windau said in a research note, an analyst of Edward Jones.

In its earnings report, the company said that its electric vehicle is progressing towards becoming profitable. The company produced around 189,000 electric vehicles in North America last year – less than its target of 200,000 – and expected to produce around 300,000 in the region in 2025, Mr. Jacobson said.

GM’s electric vehicle business may also suffer if Mr. Trump and Republican in Congress canceled or reduced the tax of biden-era, which make cars and trucks more cheap and companies have a battery in the United States Encourage the construction of.

Ms. Barra said that the company has emphasized the importance of American leadership in a strong manufacturing and advanced technologies in its conversation with the Congress and the White House. “We believe that the President wants to use policy and rules that will not strengthen and harm domestic manufacturers like GM”

He also said that GM has a broad portfolio of internal-combustion engines and electric vehicles and is confident that they will continue to increase the company’s American market share.

Due to the company’s strong performance in North America, GM stated that it would pay a bonus of up to $ 14,500 for 46,000 members of the United Automobile Workers Union that works in its US plants.

) Sports utility vehicle and light truck (T) prices (rent (T) fees and rates) (T) General Motors (T) Barra (T) Mary T (T) Trump (T) Donald J (T) China (T. ) Canada (T) Mexico (T) United States (T) North America
#plans #prepared #Trumps #Canada #Mexico #tariffs

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