GM's North American profits jumped 43% and the company raised its full-year guidance for the second time this year, even while absorbing another $2.3 billion in EV-related charges.
GM is heading into the second half of the year with stronger pricing, better margins, and a noticeably healthier North American business.
📊 The Numbers
North American profit: up 43% to $3.45 billion
Global adjusted earnings: up 30% to $3.94 billion
Operating margins: above 8%, up from around 6% a year ago
Full-year guidance: raised again, now $14-16 billion
We haven't made excuses, we've just continued to perform.
🎙️ Want the full conversation?
Listen to today's Automotive State of the Union episode for the complete discussion, additional context, and the conversations that shaped our perspective.
The Write-Downs Are Real. So Is the Profit.
Net income still fell 31% after another $2.3 billion EV realignment charge, bringing total EV-related charges to roughly $11 billion over the past year. That's not a small number to absorb, and it's the same posture Ford has taken with its own EV losses this year.
Paul and Kyle’s Take
GM and Ford are both being praised for refusing to spin the EV recalibration as anything other than what it is: a strategic bet that didn't pan out as planned.
Rather than making excuses, both companies are taking the write-downs directly while still posting strong underlying profit, which our hosts see as a genuinely healthier position than pretending the EV pivot went as expected.
Trucks and SUVs Are Still Doing the Heavy Lifting
Stronger vehicle sales and transaction prices pushed global revenue to $48 billion, up 1.9% year-over-year, a modest topline gain riding on top of a much larger jump in margin and profit.
Upcoming redesigns of the Chevrolet Silverado and GMC Sierra, GM's most profitable vehicles, are expected to push margins even further once they reach dealer lots. Barra also confirmed the company plans to bring "significant production" into the U.S. to reduce tariff exposure going forward.
What This Means for Your Store
If you're a GM dealer, this is a real confidence signal heading into H2. Strong truck and SUV margins, a clear plan to reduce tariff exposure through U.S. production, and two major redesigns coming down the pipeline all point toward continued strength, not a company still finding its footing.
