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The Markets
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Manufacturing & engineering

General Motors slashes guidance as it expects up to $5M tariff hit

General Motors Company (NYSE:GM) has downwardly revised its full-year 2025 financial guidance to include exposure to new auto tariffs of $4 billion to $5 billion.

The company now expects adjusted earnings before interest and taxes (EBIT) between $10 billion and $12.5 billion.

It had previously forecast $13.7 billion to $15.7 billion in full-year EBIT.

GM projects net income attributable to shareholders of $8.2 billion to $10.1 billion, down from the earlier range of $11.2 billion to $12.5 billion.

Adjusted automotive free cash flow is now expected to be $7.5 billion to $10 billion, compared to the previous estimate of $11 billion to $13 billion.

“We look forward to maintaining our strong dialogue with the Administration on trade and other policies as they continue to evolve,” GM CEO Mary Barra said in a letter to shareholders.

Shares of GM traded up 0.8% at $45 late morning on Thursday, reflecting investor relief that the company has provided clarity on its outlook.

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