Detroit (Reuters)-General Motors reduced its profit projection to 2025 on Thursday (1), after receiving clarification and a relief from the White House this week in relation to automotive tariffs.
GM’s executive president Mary Barra told shareholders that the company will maintain dialogue with the Trump government about trade and other policies as they evolve.
“There are discussions ongoing with important business partners that may also have an impact,” said Barra.
The automaker of Detroit released the new forecast two days after discontinued an earlier January, which did not consider automotive tariffs, and after US President Donald Trump’s government made changes in them.
The company’s shares rose about 1% in the negotiations on Thursday.
The automaker foresees annual adjusted operating profit between $ 10 billion and $ 12.5 billion, including current exposure to tariffs between $ 4 billion and $ 5 billion. This exhibition includes about US $ 2 billion for the cheapest vehicles that GM matters from South Korea, where it produces Chevrolet and Buick brands, GM Chief Financial Officer Paul Jacobson told Analysts on a teleconferencing analysts on Thursday.
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The automaker’s new “guidance” assumes that the company can compensate at least 30% of tariff costs, Jacobson said.
“Since the election, our supply -making teams have focused on developing strategies to help mitigate the impact of potential tariffs,” said Jacobson. “These strategies are now being actively implemented … We will take additional mitigation measures, including cost reduction goals when it makes sense.”
GM’s previous projection for its profit before interest and taxes was between $ 13.7 billion and $ 15.7 billion.
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The company expects net profit between $ 8.2 billion and $ 10.1 billion in the year, below the previous range of $ 11.2 billion to $ 12.5 billion.
GM foresees investments around $ 10 billion to $ 11 billion by 2025.
