General Motors’ profit declined 35% in its second-quarter but the automaker easily topped expectations and stuck by its full-year financial outlook that it lowered in May.
GM CEO Mary Barra also said in a letter to shareholders on Tuesday that the automaker is attempting to “greatly reduce our tariff exposure,” citing $4 billion of new investment in its U.S. assembly plants.
“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,” she said.
GM said that it’s making solid progress in mitigating at least 30% of the $4 billion to $5 billion gross tariff impact it anticipates for the year through manufacturing adjustments, targeted cost initiatives and with pricing.
There was a $1.1 billion net impact from tariffs in the second quarter and GM anticipates a higher