General Motors (GM) anticipates its North America EBIT margins will rise to the 8-10% range by 2026, up from 6.8% in 2025. Key factors contributing to this recovery include lower electric vehicle (EV) losses, projected to decrease significantly in 2026, and a $1 billion benefit from reduced warranty expenses. Additionally, GM expects $500-$750 million in savings from lower compliance costs related to emissions regulations.
The company will benefit from strong demand for full-size pickups and SUVs, maintaining low inventory levels and incentives, which will help protect margins amidst competition. Despite a challenging EV landscape, management believes disciplined cost control and a solid product lineup will offset pressures from market dynamics and tariff impacts.
