GM Raises Outlook on Strong Truck Demand
CEO Mary Barra Also Cites Tariff Relief
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General Motors Co. raised its full-year outlook and posted third-quarter results that topped Wall Street estimates on better—than-expected pickup truck sales and fresh relief from the Trump administration’s tariffs on auto parts.
Adjusted earnings before interest and taxes will be $12 billion to $13 billion in 2025, the automaker said in a statement on Oct. 21. That’s up from a previous range of $10 billion to $12.5 billion. The bullish outlook comes as GM has seen a jump in sales of high-margin gas-powered SUVs and trucks partly enabled by swings in federal emissions policy.
In a letter to shareholders, CEO Mary Barra thanked President Donald Trump for extending through 2030 a tariff discount on some imports for carmakers that produce and sell completed automobiles in the U.S. “GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint,” she said.
Shares of the Detroit-based manufacturer rose 6.7% in premarket trading to $61.90 as of 6:35 a.m. in New York. The stock closed Oct. 20 up about 9% for the year compared with a nearly 15% gain in the broader S&P 500 index.
The forecast shows how GM is managing disruption from the White House in areas ranging from emission penalties and electric vehicle subsidies to levies on imports of components and vehicles. Those changes have further undercut an already wavering initiative undertaken to electrify GM’s fleet by 2035 in a bid to better compete with Tesla Inc. and fast-growing Chinese rivals. Earlier this month, GM said it booked a one-time charge of $1.6 billion to restructure its struggling EV business.
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“It is now clear that near-term EV adoption will be lower than planned,” Barra said in her letter. “By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond.”
Adjusted profit in the three months to Sept. 30 came to $2.80 per share, the company said, surpassing analysts’ consensus for $2.27 a share but falling short of the $2.96 per share it reported a year ago — and before the implementation of Trump’s trade agenda.
GM made $80 million in China in the latest quarter and $197 million the first nine months of the year. That comes after it lost $137 million in the same quarter a year ago and $347 million the first three quarters of last year.
