General Motors CEO confirms automaker is swerving extra car fees with spike in US production after billion-dollar drop

THE CEO of General Motors has confirmed the car giant is increasing its US production to soften the impact of tariffs and other costs.

President Donald Trump imposed 25% tariffs on foreign-made vehicles and car parts in early April – and maybe manufacturers have suffered losses as a result.

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Car giant General Motors has increased its US production in recent months to soften the impact of tariffs[/caption]

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They have seen sales of their EVs more than double thanks to new models such as the Chevrolet Equinox[/caption]

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They have also enjoyed sales success in China – a market that has proved a stumbling block in recent years[/caption]

One of them is GM, who, according to the New York Times, is facing hefty financial challenges in their second quarter – with their profits dropping by over a third, from $2.9 billion last year to $1.9 billion this quarter.

What’s more, their sales have decreased by 2 percent to $47 billion.

They also reported that Trump’s tariffs have significantly impacted the company, costing over $1 billion in the quarter and potentially $5 billion for the year.

One of the biggest stumbling blocks for many car makers is effects on vehicles manufactured in Canada, Mexico and South Korea, and exported to the US.

To lessen these costs, GM has been cutting expenses and increasing US manufacturing – investing $4 billion to produce more pickups and SUVs domestically.

GM has enjoyed plenty of success with their electric vehicles, as sales of their EVs has more than doubled – thanks to new models such as the Chevrolet Equinox.

Indeed, GM holds 16 percent of the US electric vehicle market, with Tesla only ahead of them.

But it isn’t all about EVs, as GM has also been investing in their internal combustion engine tech – with $900 million put into the production of a new V8 gasoline engine in New York.

This has been massively helped by Republican policies that reduced enforcement of clean air and fuel economy standards.

The US car giant has also enjoyed success in China – a market that has proved a stumbling block for many manufacturers in recent years.

GM increased sales in China from $4.7 billion to $6.1 billion during the quarter, even competing with domestic companies such as the mighty BYD.

They sell Cadillac, Buick and Chevrolet vehicles in China – thanks to a joint venture with SAIC Motor.

Encouragingly, half of the vehicles sold in this venture have been electric or hybrid models.

Overall, they emphasize their commitment to profitable EV production, all the while acknowledging that internal combustion engines still have significant demand.

GM’s CEO, Mary Barra, said: “We are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.”

She added: “Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production.”

Despite the positive, GM’s stock price has dropped by 7 percent – perhaps reflecting investor concerns about their current financial performance.

This comes as GM recently paused production lines at its Silao, Mexico assembly plant – with the site already experiencing two separate two-week shutdowns recently.

According to Reuters, two of the mega-brand’s most popular pickup trucks, the Chevrolet Silverado and GMC Sierra, are built at the location – making the shutdowns particularly unusual considering the brands’ high demand.

Last year, GM built 889,072 cars in Mexican factories, while the Silverado sold more than 540,000 units in 2024 and the higher-end Sierra sold over 340,000 examples.

The move comes after GM’s CEO, Mary Barra, spoke about future financial struggles the company may face.