With an impact of customs duties of more than $ 1 billion, the benefits of General Motors plunge, the action unscrews to Wall Street

(BFM Stock Exchange) – The American manufacturer suffers from Wall Street on. Consequently, Tuesday while its profit dropped in the second quarter due in particular to a negative impact of more than $ 1 billion from customs duties. However, The company warned that customs from customs would weigh even more in the third quarter.

The results season has a virtue: it allows the market to measure the impact of American customs duties on. Nevertheless, business accounts. Therefore,

The automobile is particularly affected. Furthermore, The sector is both concerned by customs duties hitting Mexico. For example, Canada – manufacturers import many parts and vehicles from these two countries to the United States – by, more generally, surcharges against automobile imports and equipment, as well as by customs duties on steel and aluminum. Furthermore,

Even if, in April, Donald Trump had impact customs duties more than signed a decree to limit the “double sorrows”. Moreover, And that imports of parts. However, vehicles from Mexico and Canada can see their surcharges be reduced, in conditions to comply with the free trade agreement entered between the three countries (agreement called “USMCA” for “United States Mexico CANADA Agreement). Meanwhile,

Bernstein wrote in November that Stellantis. Volkswagen imported Mexico and Canada around 40% of volumes sold in the United States, a rate that drops around 30% for General Motors and around 25% for Ford.

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An even more painful third trimester

Monday, Stellantis issued a major warning on results, announcing a net loss of 2.3 billion euros in the first half and 2.3 billion euros in cash burned over the same period. The Franco-Italian-American group then mentioned a net impact of 300 million euros linked impact customs duties more than to customs duties on the first half.

For General Motors, the bill is much more salty. On the occasion of the publication of its results. the Mother house of Chevrolet, Cadillcac and Buick said it had undergone a net impact of customs dollars dollars in terms of its operating profit, in the second quarter alone. The company said that, over this period, the measures to compensate for these impacts had been “limited”.

General Motors said he expected that customs duties weigh even more on his accounts in the third quarter. This is due to the “timing” of the indirect costs of these customs surcharges.

The company has confirmed its estimate of a “gross” impact of these customs rights from $ 5 billion to the whole of 2025.

General Motors thinks that it can reduce this figure by 30% via price increases. stocks on its costs, or “adjustments” impact customs duties more than to its production.

Increase in capacity in the United States

The American manufacturer notably announced in June 4 billion dollars in investments. over the next two years to increase its industrial footprint in the United States. This should result in additional capacities representing 300,000 vehicles, including crossovers, SUVs and pickups.

“This will help us meet the unsatisfied demand for our customers. considerably reduce our exposure to customs duties and seize the upward opportunities when launching new models,” said Mary Barra, general manager of General Motors in a letter to shareholders published on Tuesday. “The production capacity will be put into service in only 18 months. after which we plan to build more than 2 million vehicles per year in the United States as we develop,” she added.

In Wall Street, the action General Motors drops 6.7% around 5.30 p.m. French time. Questions about customs duties completely overshadow the group’s results, impact customs duties more than however better than expected.

In the second quarter, the group released revenues of $ 47.1 billion, down 2% over one year. The adjusted operating profit reached $ 3 billion compared to 4.4 billion a year earlier, while the corresponding margin registered 6.4% against 9.3% in the second quarter of 2024. Papa per share increased from $ 3.06 to 2.53 dollars.

According to a consensus quoted by Dan Ives, analyst at Wedbush, analysts tabbed on income of $ 45.84 billion, an adjusted operating profit of $ 2.84 billion and a profit per share of 2.34 dollars.

The adjusted cash flow from automotive activities has also been divided by almost two, to 2.8 billion dollars, penalized by payments due to customs duties and by variations in working fund need.

“While the big titles on customs duties continue to exert additional pressure on the financial results in the foreseeable future. we impact customs duties more than believe that (Mary) Barra and the others continue to brilliantly navigate in a complex context, while benefiting from a demand that is always strong for its entire fleet of electric vehicles and thermal vehicles”, judges Dan Ives.

General Motors has confirmed all of its prospects for 2025 with in particular an adjusted operating profit between $ 10 billion and $ 12.5 billion, and an adjusted share per share expected between $ 8.25 and $ 10.

Julien Marion – © 2025 BFM Bourse