General Motors (GM) raised its 2026 profit outlook after the company reported stronger-than-expected first-quarter results and lower-than-expected tariff costs.
The US automaker reported an 11 percent year-on-year profit increase in North America – including the United States, Canada and Mexico – and raised its full-year forecast to $13.5 billion to $15.5 billion (A$18.8 billion to $21.6 billion).
GM also expects to spend less on tariffs than previously forecast, revising its estimate from $3 billion to $4 billion (AU$4.2 billion to $5.5 billion) to $2.5 billion to $3 billion (AU$3.5 billion to $4.2 billion).
The reduction follows a February U.S. Supreme Court ruling that a 10 percent tariff on imports into the U.S. was illegal and forced the White House to refund previously imposed tariffs.
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However, GM warned that lower tariff costs will be partially offset by rising parts and materials costs related to the conflict in the Middle East.
“We are working to offset these cost pressures by reducing spending in other areas and continuing to seek efficiencies across the company,” said GM CEO Mary Barra.
“But we believe it is prudent to wait and see how events unfold before making any further changes to the guidance.”
Despite raising its profit outlook, GM cut its 2026 net profit forecast to $9.9 billion to $11.4 billion (A$13.8 billion to $15.9 billion), from a previous forecast of $10.3 billion to $11.7 billion (A$14.3 billion to $16.2 billion).
U.S. new vehicle sales fell 14.2 percent year-over-year in March, compared with an overall market decline of 11.4 percent.
GM’s best-selling model, the Chevrolet Silverado pickup, was the second most popular vehicle in the United States behind the Ford F-Series, which includes the F-150, which is also sold in Australia.
The F-150 remained at the top despite the recent inventory shortage in the US, which Ford Australia says will not impact local supply.
While electric vehicle (EV) sales have surged in Australia – rising 88.9 per cent year-on-year in March to a record 14.6 per cent market share – demand for electric vehicles in the US has fallen following the removal of federal incentives in October 2025.
Ms. Barra said GM was well positioned to respond to changing consumer demand amid rising fuel costs related to the war with Iran.
“I think we are well prepared with a portfolio that can compete with anyone as we look at how consumer behavior might change depending on how long the war lasts,” she said.
GM, like Ford and Stellantis, has been hit by tariffs and a decline in investment in electric vehicles and recently announced an indefinite shift in its electric truck program in favor of combustion and hybrid powertrains.
Ford has taken a similar approach, ending production of the electric F-150 Lightning in 2025. Its successor is expected to adopt extended-range electric vehicle (EREV) hybrid propulsion technology.
In Australia and New Zealand, General Motors Specialty Vehicles (GMSV) sells a limited range, including the Silverado and Corvette supercars and the full-size GMC Yukon SUV.
Sales of the Corvette and Silverado are down year-over-year, while the Yukon has recorded 106 sales so far this year, in addition to the 342 units sold last year following its May 2025 launch.
Cadillac currently only sells the Lyriq large electric SUV in Australia, but will launch three new electric SUVs here by the end of this year as the company expands its local dealer network.
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