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GM Profits Fall Thanks To EVs, Tariffs, WarrantiesFor Q2 2025, GM saw its profits diminish as EVs, tariffs, and warranties whittled away 34.5 percent of the company’s net income. It brought in $1.9 billion in net income, while at the same time gaining a 17.4 percent share of the US car market. That might sound ironic, but it’s where things are at presently.
Mercedes and Porsche both feel the pinch of US tariffs.
The big story everyone seems to be focusing on is how much tariffs cost GM. The automaker is reporting it lost $1.1 billion in the second quarter to them. However, thanks to strong sales of internal combustion engine trucks and SUVS, GM beat out what analysts were predicting for company profits.
That might be why GM has been pivoting towards those products more, pulling away from EVs some.
In fact, for Q2 2025, GM saw sales increase seven percent compared to the second quarter of last year. For the first half of 2025, they were up 12 percent year over year.
While GM has ramped up production of trucks and SUVs at some of its exiting US factories, it’s still importing many of its more budget-conscious vehicles overseas. For example, the Chevy Trax is assembled in South Korea and the Buick Encore GX is made in China.
GM attributes its increased sales to keeping prices stable despite the hit on profits from tariffs. While competitors did discounts, many have also been signaling prices will eventually increase.
Another development in Q2 2025 was that GM knocked Ford off its perch as second in the EV market niche. While the company has said some of its profit losses are from EV inventory adjustments, with the market for all-electrics turning down, being number two is apparently worth the sacrifice.
Before you start feeling too sorry for the automaker, know that its total revenue for last quarter was $47.1 billion, which wasn’t too shabby compared to Q2 2024. However, its adjusted operating income plummeted to $3 billion, down from $4.4 billion during the same period last year.
Image via GM
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