Key Points
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Tariffs and the removal of EV incentives are impacting the automotive industry.
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GM offset nearly 40% of its tariff costs in 2025, totaling around $2 billion in savings.
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Despite a $3.3 billion loss in Q4 2025, GM’s restructuring and growth strategies indicate sustainability.
General Motors (NYSE: GM) reported a notable performance in 2025 despite challenges from tariffs and declining electric vehicle (EV) market incentives. The company exceeded earnings estimates for Q4, saw its highest U.S. market share since 2015, increased its dividend by 20%, and introduced a $6 billion share repurchase program.
GM faced a substantial $7 billion in charges related to its EV production strategy, contributing to a $3.3 billion loss in Q4. However, the company is targeting a reduction in EV operating losses by $1 billion to $1.5 billion by 2026. Additionally, GM successfully lowered its total tariff costs to about $2 billion, below initial projections of $3.5 billion to $4.5 billion, thanks to various cost-reduction measures.
