GM Just Lost More Than A Billion Dollars—Here's Why
The Detroit giant reported a $1.1 billion year-over-year drop in quarterly revenue. But while the numbers are grim, GM is focusing on the bright spots, including record first-half revenue and growing EV momentum.
Key Points
- General Motors saw a $1.1 billion year-over-year revenue drop in Q2 2025 due to tariffs, but still managed to set a record for first-half revenue thanks to strong SUV sales earlier in the year.
- New U.S. tariffs—especially on Korean imports like the Trailblazer and Encore GX—are projected to cost GM between $4 and $5 billion this year, though executives say strategic manufacturing shifts could offset up to 30% of that.
- Chevrolet became the No. 2 EV brand in the U.S. in Q2, and Cadillac cracked the top five, signaling momentum for GM’s electrification plans—even as federal tax credits for EVs begin to expire.
GM executives were transparent during this week's earnings call, acknowledging what we all knew—U.S. trade policy is rearranging the company’s financials.
The tariffs, which have especially impacted vehicle imports from Korea, are expected to cost GM between $4 and $5 billion this year alone. Vehicles built in Korea like the Chevrolet Trailblazer, Buick Encore GX, and Envista are among those hit hardest.
CFO Paul Jacobson believes the company can offset up to 30% of the impact through strategic manufacturing shifts and other long-term tactics. But those aren't overnight fixes, and GM acknowledged the rest of 2025 will remain challenging.
Despite the Q2 loss, GM closed the first half of 2025 with a record $91 billion in revenue. The revenue surge was fueled by a pre-tariff buying blitz, as consumers ran to dealerships in April and May to avoid incoming price hikes. SUVs in particular drove the momentum. Chevrolet Equinox sales jumped 20% year-over-year before tariffs started to rip through pricing structures.
The company believes it can navigate the remainder of 2025 by capitalizing on its SUV leadership and gradually realigning its manufacturing footprint to soften the blow of trade disruptions.
Another bright spot was GM’s electric vehicle lineup. Chevrolet became the second-best-selling EV brand in the U.S. during Q2, while Cadillac ranked fifth. CEO Mary Barra said the company's long-term EV strategy was still in play, even as the loss of federal tax credits cools demand.
“Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,” Barra said. She added that GM will lean into its domestic battery investments and flexible production capacity to keep its EV plans on track.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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Tariffs aint what they used to be when the economy has gone golbal.