Do Not Cry for GM

[teamzr1]

So GM again raises the sticker prices for the 2026 Corvettes yet :

General Motors Co. brought in $3 billion in adjusted pre-tax earnings between April and June, the company announced Tuesday.

GM said earnings in the second quarter reflect a more than $1 billion hit from President Donald Trump's tariffs, "reflecting minimal mitigation offsets
." For comparison, GM earned close to $3.5 billion in the first three months of the year.

The latest earnings data show GM’s resilience in the face of tariff whiplash and changing federal policies, Ahole CEO Mary Barra said in a letter to shareholders Tuesday.
"In addition to our strong underlying operating performance, 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," Barra wrote.

GM said it's on track to meet lowered projected earnings of $10 billion to $12.5 billion this year.

GM leaders had warned that pain from tariffs would start to hit between April and June, before the company’s efforts to offset tariff costs fully kick in.
The company in May lowered its yearly earnings guidance from an adjusted EBIT between $13.7 billion and $15.7 billion because of tariffs.

But GM’s U.S. sales remained strong in the first half of the year, helped in part by buyers trying to get ahead of possible tariff-related price hikes.
GM now is saying the next three months will show a larger net tariff impact "due to timing of indirect tariff costs."

“Despite the unfavorable manufacturing footprint position relative to Ford, the company has managed inventory and cost with strong discipline,” Deutsche Bank analysts said in a Monday report. “We believe share repurchase, which has been a vital part of the investment thesis in the not-too distant past, will resume in 3Q though perhaps in more moderate and less ‘flashy’ ways.”

GM is the first of Detroit's three automakers to release data on its latest profits.

 

[teamzr1]

Also, do not cry for this Europe nameplate that pretends to be all American

Non-American owned Stellantis NV reported a preliminary loss of $2.7 billion (2.3 billion euro) for the first half of the year amid President Donald Trump's tariffs (they were tanked before there were tariffs) and as the global automaker's sales continued to sputter as to their mandate to sell EV vehicles

The early results a full earnings report comes July 29 reveal how the transatlantic parent of Jeep, Ram and Fiat remains deep in recovery mode following a dismal 2024 that culminated in the ouster of CEO Carlos Tavares.

Stellantis' recent problems come just as U.S. tariffs start to bite. They have cost the company about $385 million (330 million euro) through the first half, with Chief Financial Officer Doug Ostermann estimating deeper financial impacts later in the year.
"Really, when I look at the first half results, they are far below our potential, even taking into account the strong industry headwinds," Ostermann said on a Monday conference call.

Ostermann acknowledged that the Stellantis report was below analysts' earnings expectations. But there is optimism that new CEO Antonio Filosa is putting the company on the right path.
The company's shares in New York closed up less than 1% Monday, and also rose slightly in other markets.

"The story these results tell us is one many of you already know," Filosa, who took over the struggling company last month, wrote in a Monday note to employees. "This has been a tough first half, with increasing external headwinds including tariffs, foreign exchange effects and challenging macro-economic conditions. Yet despite these difficulties, it has also been six months of meaningful progress compared to the second half of 2024."

The owner of Chrysler and Dodge as well as European brands such as Peugeot and Citroën said its global vehicle shipments fell 6% in the second quarter. In North America, they plummeted 25%, thanks to tariff disruptions as well as lower fleet vehicle sales.

For the January through June period, Stellantis reported revenues of $86.7 billion (74.3 billion euro) down from $92.2 billion a year ago, but higher than last year's second half. And the carmaker revealed $3.8 billion (3.3 billion euros) in pre-tax charges tied to program cancellations, like a high-profile hydrogen fuel cell project, as well as emissions penalties that have now been eliminated, and other restructuring costs.
The company added it had burned through $2.7 billion (2.3 billion euros) in cash during the first half.

Stellantis has scrambled to adapt to Trump's tariffs in several ways, including pulling back imports from Europe, and slashing production levels at plants in Canada and Mexico moves that hurt the automaker's recent shipment figures.

Ostermann estimated that, over the course of the full year, the U.S. tariffs would cost the company between $1 billion and $1.5 billion. While Stellantis hasn't raised prices on its vehicles, Ostermann indicated they could be ahead.
"Tariffs are inherently inflationary," he said.

So far, automakers have been reluctant to raise prices in response to the import duties because Trump is often changing the policy, but also because many automakers had a few months of non-tariffed inventory to sell down.
But Ostermann said now, "I think we're coming to the end of that period."

Stellantis said it was releasing Monday's preliminary figures in the absence of its usual annual financial guidance, which was suspended in April amid uncertainty around President Donald Trump's tariffs. Stellantis reports its full first-half earnings details next week.

Executives have promised there will be sales progress in the second half, including in the profit-rich United States, as key models like the new Jeep Cherokee SUV hit the market and other gas-powered models and variants are revived due to less stringent emissions requirements under Trump. In Europe, several key vehicle launches have also been slow, which Ostermann said contributed to lower deliveries.

U.S. sales fell 10% in the second quarter, even as most other major automakers posted gains.
But the company did see progress with its highly profitable Jeep and Ram brands, which both eked out sales gains.

In his letter to workers, Filosa pointed to several recent launches in Europe, and bringing back the Cherokee and Hemi V-8 engine in the Ram 1500 in the United States, as moves that will bear fruit for Stellantis in the coming months.
"At the same time," he added, "we have made difficult but decisive decisions on our product programs where we could not see sufficient return prospects, such as discontinuing our hydrogen fuel-cell technology development program."

He said the aim is for 2025 to be "a year of gradual and sustainable improvement," and urged employees to "roll up our sleeves and release that energy and creativity I have felt and seen firsthand while travelling around our company, meeting many of you, over these past weeks since I became your CEO."

 

[teamzr1]

Interesting `why "We the People" do not know what the hell is going on
Depending on the political side, the rags that write this crap are telling a totally different side of what is going on with like GM

America's biggest carmaker just posted a steep drop in profits and doubled down on a controversial truth: electric vehicles are still the future.
General Motors, the company behind Chevrolet, Cadillac, GMC, and Buick reported $1.89 billion in net income for the second quarter, a sharp $1.1 billion decline from $2.93 billion during the same period last year.
That's a 35 percent drop from the previous quarter alone.

The company's falling profits come amid major regulatory upheaval and tariff pressure. (the ole blame game)

Earlier this month, Republicans passed the Big, Beautiful Bill Act, which slashed consumer subsidies for electric and plug-in vehicles and rewrote corporate fuel economy targets, seemingly a big blow to carmakers investing in battery-powered models.
But despite the political pushback, GM CEO Mary Barra made clear in a letter to shareholders: the company isn't backing off its EV strategy.
Yet last week stated GM was going to make a lot more gas engined vehicles
'We are also growing in EVs (only 1.4 % of GM sales is EV) because people love the design, performance, range, and value,' she wrote in a shareholder letter Tuesday. (BS)

'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star.'
Wall Street reacted swiftly to the earnings miss, sending GM’s stock down nearly 7 percent. But some analysts said the selloff was overblown.
'The sell off this morning is unfair,' David Whiston, a car industry analyst at Morningstar, told DailyMail.com. 'Tariffs took a lot out of earnings, but that should have been expected by the market.'

In May, GM lowered its full-year profit forecast and said it expects to spend between $4 billion and $5 billion complying with the trade policies.
The company is currently pouring billions into US manufacturing as it looks to avoid steep new import tariffs tied to President Donald Trump's 25 percent levy.
The automaker is investing nearly $900 million to overhaul a powertrain plant near Buffalo, New York, where it will build gas-powered V8 engines for its high-margin trucks and SUVs.

It also paused production at one of its Mexican truck plants last week before announcing a boost in production from an assembly plant in Michigan.
Barra said the company will benefit from the 'longer runway' provided to gas-combustion vehicles in the Republican bill.

The company's best-selling cars, the Chevy Silverado and GMC Sierra, produce the most profits for the automaker.
But Barra said GM's market share in the EV industry is gaining. She doesn't expect that will stop.
'Five years ago, the EV market essentially had one player,' she wrote.

'Today, there are 30, and Chevrolet became the number two EV brand in the second quarter, while Cadillac became the number five EV brand overall and the luxury EV leader.'
GM, which currently has a slate of electric SUVs, trucks, and a sedan with price tags between $35,000 and $340,000 is expecting to roll out even more EVs.

In February, the company killed off the Cadillac XT4's Kansas-based production to make way for the upcoming Chevy Bolt EV.
The upcoming Bolt is expected to compete as one of the cheapest EVs in the US market.
GM is also heavily investing in new battery technologies that increase energy density, reduce dependence on foreign rare earth minerals, and are cheaper to produce.

'The EV plan seems to be continuing to have more product choices which can in turn increase EV sales mix, while also reducing battery costs,' Whiston said.
'It's a long journey that's not close to over.'

Just a reminder,
Barra gave herself another $2 million salary raise and sold some of the FREE stock GM gave her for a profit to her of $85,000,000

 

[Roscobbc]

Whilst we're on the subject of the USA's car manufacturers 'health'. It is interesting to note that a number of the larger car distribution and dealer groups here in the UK (that have traditionally marketed the continually dwindling numbers of UK manufactured vehicles - and the European/Japanese and other far eastern brands that have replaced them) have relatively recently been 'closing-up shop'. Most have re-branded themselves and taken-on 'new' Chinese brands.
If one looks at the retail prices of most of these Chinese vehicles (and consider the prices they are sold for in their own market) the immediate question that comes to mind has to be the excessively high prices being asked here in the UK for most of these vehicles - certainly when compared with existing European equivalents.

Then consider the fact that under our current government the UK charges the same import duty on Chinese cars as they do on European and most other far eastern imports (not Chinese).........whereas 90% of the worlds countries charge additional import duties (some quite significant) to prevent the 'dumping' of cheap Chinese vehicles and the effects if will have on other car manufacturers.

We learnt a few days ago that the UK Labour government are introducing grants to UK electric car manufacturers of either £1500 or £3750 per vehicle sold to help generate poor EV sales in the UK.
With perhaps only Mini, Nissan and Toyota being the only EV vehicles actually manufactured in the UK (within the £37000 top limit of the grant) this can't be particularly helpful for UK buyers.........then we later see that other European car makers are 'talking' with HMG to see their part in this promotion.
The Chinese car companies (or more likely their UK based mouthpieces) are now calling-out "this is unfair" and several have announced they will be introducing their own 'incentives' for purchsers of Chinese EV's to match the HMG's plans.
Kinda makes one think that the Chinese manufacturers and their UK based distribution/dealer networks are already financially ripping the UK buyers-off sufficiently enough to be able to 'knee-jerk' their very own discount structures.
As Mike Rutherford, long term respected auto journalist comments that "its only a matter of time before Chinese cars outsell all other countries in the UK"

 

[teamzr1]

So GM has cars made in China, then ships them across the globe and sells them at a super low price but only sells in Mexico right off the border of the USA screwing American workers

Uber driver Patricia Gatica looked no further than her nearby Chevrolet dealership for a new car. The mustard yellow Chevy Aveo she chose is small enough to squeeze through the congested streets of Mexico City, and it gets a very respectable 48 miles per gallon.

Best of all, with a price tag of about $17,000, the General Motors Co. subcompact is very, very affordable.
The secret: The American-branded car sold in Mexico is actually made in China, where cheaper labor and component costs allow companies to churn out less expensive cars.

Right now, her Chinese-made car is only available outside the US. But with prices starting below $18,000, the Aveo and similar Chevy Onix subcompact sedans show how much cheaper cars can be in a market that welcomes vehicles built in China.
In the US, the average new car price has soared to almost $49,000, compared with about $32,000 in Mexico, according to the country’s automotive dealer's association, AMDA.

GM’s lowest-cost car in the US, the Chevy Trax, starts at around $5,000 more than an Aveo sold in Mexico - and that’s for a babare-bonesersion; It typically sells for thousands of dollars more with popular options like heated seats and remote ignition.

Washington has promised to shield American automakers from Chinese imports with tariffs, some in place since President Donald Trump’s first administration. But that hasn’t stopped GM, Ford Motor Co. and Stellantis NV which owns the Chrysler, Jeep and Ram brands from shipping their own China-made cars to Mexico and other Latin American markets. They’re part of a wave of Chinese car exports in recent years.

About 65% of GM’s sales in Mexico are brought in from China, totaling some 60,942 vehicles in the first half of the year, according to Mexican national statistics bureau Inegi. Overall, Chinese car imports by all brands made up almost one-fifth of total new car sales in Mexico last year, outpacing shipments from the US, Brazil, India and Japan.

The number is probably even higher as some Chinese brands like BYD Co., Geely Automotive Holdings and Guangzhou Automobile Group don’t report their data to Inegi. Mexico became the biggest destination for Chinese cars in the world in the first four months of the year, having overtaken Russia, according to the China Passenger Car Association.

“The Chinese automotive industry has a production capacity on a scale superior to that of competitors in other regions, and this gives them a competitive advantage,” said Guillermo Rosales, president of auto association AMDA. Mexico’s policy of welcoming Chinese cars has helped drive down prices, he noted.

 

[Nassau65]

[QUOTE="teamzr1, post: 65996],
Barra gave herself another $2 million salary raise and sold some of the FREE stock GM gave her for a profit to her of $85,000,000 [/SIZE][/COLOR][/B]
[/QUOTE]

Very nice work if you can get it.

 

[teamzr1]

I doubt she really worked a day in her whole life
She got where she is as being a personal buddy to obama, and he forced her into the GM position and also on GM Corp board

 

[Nassau65]

Well, there’s a very old saying,
It’s not what you know, it’s who you know.

 

[Chuffer]

Well, there’s a very old saying,
It’s not what you know, it’s who you know.

In my experience , having a long tongue helps no end too !!!

 

[Nassau65]