General Motors Boosts Profit Outlook Amid Strong Demand and Tariff Relief

General Motors Raises Profit Forecast on Strong Demand and Lower Tariff Costs In a surprise move, General Motors (G.M.) has increased its profit forecast, citing strong demand and lower tariff costs. The automaker's stock surged 15% on Tuesday, following the announcement. G.M. now expects its profit to rise in 2026, after a recent change in trade policies reduced the impact of tariffs on imported cars and parts. G.M. reported a 50% decline in third-quarter profit, falling to $1.3 billion from $3 billion in the same period last year. However, the company's revised forecast suggests a turnaround is underway. The positive outlook was attributed to the administration's decision to lower tariffs on imported vehicles, which will reduce G.M.'s losses on electric vehicles. The company's shift in strategy, announced on Tuesday, involves increasing production of internal-combustion trucks in the United States and scaling back its electric vehicle plans. G.M. CEO Mary T. Barra stated that the company has "reacted with urgency and discipline" to strengthen its position in the market. The change in trade policies has forced automakers to adapt quickly, with G.M. being a prime example. The company's efforts to reshape its operations have come at a cost, but the revised forecast suggests a brighter future ahead. G.M.'s revised profit forecast is a significant development in the automotive industry, which has been impacted by the Trump administration's trade policies. The company's stock price increase reflects investors' optimism about the company's prospects. As the industry continues to evolve, G.M. will need to navigate the changing landscape to maintain its position. The company's revised forecast suggests that it is well-positioned to do so, with a strong focus on internal-combustion trucks and a reduced reliance on electric vehicles. Key financial details: - Third-quarter profit: $1.3 billion (down 50% from $3 billion in 2024) - Revised profit forecast: expects profit to rise in 2026 - Stock price: up 15% on Tuesday - Tariff costs: reduced due to administration's decision to lower tariffs on imported vehicles *This story is developing. Information compiled from Nytimes reporting.*