General Motors | Q2 2025: profit drop, tariff pressure and confidence in the second half of the year

General Motors enters the second half of 2025 with an ambition to maintain strong operating performance despite weaker second quarter results. The company faced a number of challenges, including declining margins, lower cash flow and the impact of new US tariffs, but still reaffirmed its full-year financial guidance. Second quarter results showed a decline in both sales and profit, reflecting rising costs and lower operating efficiencies in key regions. Nevertheless, GM remains committed to countering these pressures through a combination of cost savings, production shifts and investment in growth areas.

Management's strategy continues to rely on two key ingredients - stable revenues from traditional vehicle sales and the gradual, measured development of electric mobility, which is seen as a medium-term pillar of profitability. While profit declines have been significant and cash flow has seen a sharp fall, $GMmanagement is betting on a recovery in the second half of the year, when the…

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