General Motors (GM) has boosted its profit forecast for 2026 after posting stronger than expected first-quarter results and lower than anticipated tariff costs.
According to the US automaker, “the total annual profit in North America – including USA, Canada and Mexico has increased 11 per cent year-on-year guidance for its full-time program to between US$13”. 5 and $15, . 1billion (A$18) – 5 billion). Paraphrasing 8-21. 6bn) .
Also, GM says it will spend less on tariffs than previously predicted — increasing its estimate from between US$3 and $4 billion (A $4). 2-$5 $ Between US$2 and 5bn) to . A$3 and 5 and $3 billion (A$3) . 4-$5 per cent of s. 2bn) .
The move is in response to a February ruling by the US Supreme Court that if an imports were not subject to any 10 per cent tariff on import into the United States, it was illegal for the White House to refund previously collected duties.
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Nevertheless, GM warned lower tariff costs will be partly offset by rising parts and material costs associated with conflict in the Middle East.
He said ‘We are trying to reduce these cost pressures by cutting off spending in other areas and still finding efficiency across the business.’ GM CEO Mary Barra said she was ‘very much working on making progress at this point of time’.
“But we believe it’s prudent to wait and see how events unfold before we make any further changes to guidance.”
GM has cut its net income forecast for 2026 to between US$9, even though it lifted its earnings forecast. 9 and $11. a 4 billion (A$13) . Paraphrasing 8-$15 9bn), from US$10, down from . 11 to 3. A$14 billion (A$12 billion) 7 billion. 3-$16. Former 2bn)
US sales of new-vehicles were 14 per cent lower than the previous year, according to . The market is falling 11 per cent, compared to 2 Percent year-on–year in March for . a 4 per cent , and is worth four percent.
GM’s best-selling model, the Chevrolet Silverado pickup, was the second-most popular vehicle in the US behind the Ford F-Series, which includes the F-150 also sold in Australia.
The F-150 has remained on top despite recent stock shortages in the US, which Ford Australia has said won’t affect local supply.
While electric vehicle (EV) sales have surged in Australia – rising by 88.9 per cent year-on-year in March to a record 14.6 per cent market share – EV demand has softened in the US following the removal of federal incentives in October 2025.
Ms Barra said GM is well placed to respond to changing consumer demand as fuel costs are rising due to the war with Iran.
We’re well prepared with a portfolio that can be used against anyone when we look at how consumer behaviour might change depending on the length of the war,’ she said.
GM, like Ford and Stellantis, has been impacted by tariffs and a scaling back of EV investment, recently announcing an indefinite delay to its electric truck program in favour of combustion and hybrid powertrains.
Ford has taken a similar approach, ending production of the electric F-150 Lightning in 2025, with its successor expected to adopt extended-range electric vehicle (EREV) hybrid powertrain technology.
In Australia and New Zealand, General Motors Specialty Vehicles (GMSV) sells a limited range including the Silverado and Corvette supercar, and the GMC Yukon full-size SUV.
Sales of the Corvette and Silverado are year-on yearly, while the Yukon has recorded 106 sales so far this year (including 342 units sold last year after its launch in May 2025).
Cadillac, meantime, so far sells only the large Lyriq electric SUV in Australia, but is set to introduce three new electric SUVs here by the end of this year as it expands its local dealer network.
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