Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer:
by Kalea Hall
General Motors (GM) announced on Tuesday a 22% increase in its first-quarter core profit and raised its profit outlook for the year, supported by a resilient American auto market and expected duty refund.
The Detroit automaker reported a pre-tax profit of $4.3 billion, or $3.70 per share, surpassing analysts’ estimates of $2.62, according to LSEG data.
GM raised its 2026 profit forecast by $500 million, the amount it hopes to recover through refunds following a Supreme Court decision that invalidated some of the tariffs imposed by the Trump administration. It now expects an annual core profit between $13.5 and $15.5 billion.
The quarterly net profit of the automaker decreased by 6% compared to the previous year, reaching $2.6 billion, mainly due to a $1.1 billion charge to settle supplier claims related to the slowdown in electric vehicle programs. Revenue of $43.6 billion decreased by less than 1%.
American consumers continued to buy cars despite a year of economic uncertainty due to tariffs, rising gasoline prices, and unstable employment market. “We are clearly operating in a very dynamic environment, which is not unusual for this sector,” said GM CEO Mary Barra.
In North America, GM’s main revenue source, its profit margin improved from 8.8% to 10.1% from the previous year, despite a 10% decline in first-quarter sales.
This sales decline is partly due to a tough comparison with the first quarter of 2025, when American buyers rushed to new vehicles to beat price increases due to tariffs.
GM indicated that savings from relaxed emissions regulations in the United States, as well as lower warranty costs, helped offset the sales decline.
In China, where GM is restructuring its operations, the automaker reported a $165 million equity income, compared to $45 million a year ago. Its international operations outside of China recorded a core profit of $123 million, up from $30 million previously.
Like many other automakers, GM reduced its electric vehicle production due to decreased demand following pro-fossil fuel policies implemented by the Trump administration last year. GM’s electric vehicle sales dropped by 43% in the last three months of the previous year.
In addition to the $1.1 billion charge recorded in the first quarter, GM accounted for $7.6 billion depreciation on its electric vehicle programs last year.
