General Motors recently released its first quarter financial report for 2025, with revenue increasing by 2.3% year-on-year to $44 billion, net profit of $2.8 billion, and adjusted EBIT of $3.5 billion. Despite the decline in net profit, General Motors still exceeded Wall Street's expectations for its first quarter financial results.
General Motors Orion Plant in Lake Orion, Michigan, USA.
GM's revenue growth is mainly due to the substantial increase in deliveries and market share in the United States. In the first quarter of 2025, GM's share of the US market increased by nearly two percentage points year-on-year to 17.2%. In the electric vehicle market, GM ranks second in sales, and Chevrolet becomes the fastest growing electric vehicle brand in the US market. In the SUV segment, where GM has a traditional advantage, full-size SUV sales have achieved the best performance in the same period since 2007.
GM also mentioned the good performance of the Chinese market after the business restructuring in the earnings conference. After achieving positive profitability in the Chinese market in the fourth quarter of 2024, GM has consolidated its profitability momentum with its steadily improving market performance. GM has achieved month-on-month growth in market share in China for three consecutive quarters, and achieved year-on-year positive sales in the first quarter. Sales of new energy vehicles, including pure electric and plug-in hybrid vehicles, increased by 53.2% year-on-year.
Although GM beat Wall Street's first-quarter expectations, the automaker is reassessing its 2025 financial guidance and suspending any additional share buybacks amid expected cost increases and industry uncertainty over Trump's continued auto tariffs (the tariffs had a relatively small impact on GM in the first quarter).
GM said it currently faces a negative impact of $4 billion to $5 billion in tariffs. GM Chief Financial Officer Paul Jacobson said that based on the current business environment and assuming that we can offset 30% of the impact through self-help measures. On this basis, GM lowered its profit forecast for 2025, expecting adjusted annual core profit to be between $10 billion and $12.5 billion (down from the previous $13.7 billion to $15.7 billion), and full-year net profit to be between $8.2 billion and $10.1 billion (down from the previous $11.2 billion to $12.5 billion).
On March 26, US President Trump signed an executive order announcing a 25% tariff on all imported cars, which will take effect on April 2. On April 29, White House officials said Trump plans to sign an executive order to ease the impact of auto tariffs. According to the latest policy of the US Customs on May 1, auto parts produced in Mexico that meet the USMCA rules of origin (North American value content ≥ 75%) will be permanently exempted from the 25% tariff.
General Motors Chairman and CEO Mary Barra revealed in the earnings conference call that "all vehicles produced by General Motors in North America meet the requirements of the USMCA, and more than 80% of the parts used in vehicles produced in the United States meet the requirements of the USMCA."
"GM is adapting to the new trade policy environment, further strengthening its supply chain system and improving the profitability of its electric vehicle business," said Mary Barra.
