General Motors tops Q1 expectations, suspends guidance amid tariff storm
By Josh White
Date: Tuesday 29 Apr 2025
(Sharecast News) - General Motors reported strong first-quarter results on Tuesday, surpassing Wall Street's expectations for both earnings and revenue.
However, the automaker postponed its earnings call and suspended its 2025 financial guidance due to growing uncertainty around auto tariffs under US president Donald Trump's administration.
GM posted adjusted earnings per share of $2.78, exceeding analysts' forecasts of about $2.70, with revenue rising 2.3% year-over-year to $44.02bn.
Net income, however, declined 6.6% to $2.78bn compared to $2.98bn a year earlier.
Despite the strong results, GM executives emphasised that their previous 2025 outlook, issued in January, assumed a stable policy environment and did not account for potential tariff impacts.
The company delayed its conference call with investors to Thursday, citing the need for more time to assess the potential effects of upcoming tariff changes.
Recent reports indicated that the Trump administration was planning to ease some aspects of its auto tariffs, including removing the compounding effect of tariffs on foreign-made vehicles and modifying levies on imported auto parts.
Treasury secretary Scott Bessent emphasised that the administration's goal remains boosting domestic manufacturing jobs.
GM's chief financial officer Paul Jacobson said the future impact of tariffs could be significant and advised that the prior 2025 guidance should not be relied upon. He noted that GM may be able to offset between 30% and 50% of the North American tariff costs but stressed that the company needs greater clarity before making major strategic decisions.
Jacobson also said GM had made small adjustments to production, such as boosting pickup truck output at an Indiana plant and suspending downtime in Missouri, while deferring larger changes until the tariff situation stabilizes.
Industry analysts warned that the new tariffs could sharply increase car prices and pressure consumer demand.
GM acknowledged that a surge in purchases ahead of expected price increases helped lift first-quarter sales, and strong demand has continued into April.
Meanwhile, concerns over trade policy had already led Wall Street firms to downgrade auto stocks and prompted GM to temporarily suspend additional stock buybacks beyond its current $2bn accelerated program.
The broader uncertainty came as President Trump was planning to visit Michigan, a key battleground state for the auto industry, to discuss his trade agenda.
Michigan has experienced rising unemployment and economic strain tied in part to earlier tariff measures.
General Motors' shares had declined about 12% so far this year, underperforming competitors like Ford.
At 1143 EDT (1643 BST), shares in General Motors were down 1.3% in New York at $46.63.
Reporting by Josh White for Sharecast.com.
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