Detroit-based automaker General Motors told shareholders Thursday that it expects tariffs will cost the company about $4 billion to $5 billion and it lowered its financial guidance for the year.
GM CEO Mary Barra said the company has been in near continuous talks with President Donald Trump’s administration since the inauguration in January.
“They have invested the time to understand what it takes to be successful in this capital-intensive and highly competitive global industry, how we can work together to grow American manufacturing, and the importance of companies like GM to communities across the country,” she said. “Almost one million people in this country depend on GM for their livelihoods, including our employees, suppliers and dealers.”
Barra said the company plans to continue to invest in the U.S., where it has a network of 50 manufacturing plants and parts facilities in 19 states. That includes 11 vehicle assembly plants.
GM has invested $60 billion in U.S. operations over the past five years, Barra said.
“We will continue to grow our investments as we move forward,” Barra wrote in a letter to shareholders.
GM cut its adjusted earnings before interest and taxes to between $10 billion and $12.5 billion. That’s down from previous guidance of $13.7 billion to $15.7 billion.
“We look forward to maintaining our strong dialogue with the Administration on trade and other policies as they continue to evolve,” Barra said. “As you know, there are ongoing discussions with key trade partners that may also have an impact.”
She also said the company continues to grow.
“Importantly, GM’s business is growing and fundamentally strong as we adapt to the new trade policy environment, further strengthen our supply base, and drive EV profitability,” Barra wrote.
Barra declined to say if the company would raise vehicle prices or move production from Mexico to the U.S. She told CNBC on Thursday that the company is working to offset as much of the increased costs from tariffs as possible.
