General Motors faces billions of dollars in new tariff-related hits to earnings but still plans to hold vehicle prices steady, CEO Mary Barra told FOX Business on Thursday, citing the company’s push to expand U.S. production.
With the side effects of tariffs looming, something has to give – but, for now, GM says customers won’t be paying the price.
“From a pricing perspective, we’ve said, and we’ve included in our guidance, it is going to stay at the same level as it is,” Barra told “Mornings with Maria.”
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Barra credited strong demand for GM’s gas-powered and electric vehicles, noting the company hasn’t needed major incentives to drive sales and remains committed to giving consumers more choices.
To also absorb the tariff-related hit, Barra said GM is focusing on expanding domestic production.
“We think there’s a lot we can do to impact those tariffs by continuing to increase our U.S. content and continuing to build even more cars in this country than we do today,” she said.
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Barra also warned that competition from China is “very fierce,” acknowledging subsidies from the Chinese government as a factor.
“I think it’s very important with the trade policy that’s happening is that we make sure there is a level playing field there because manufacturing in this country, when you look at the technology that is on vehicles today, there are many implications from not only economic security but a national security perspective,” she noted, adding, “I don’t make trade policy. I need to make sure that we’re as competitive as possible.”
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President Donald Trump signed an executive order on Tuesday to soften the tariff blow for U.S. automakers, preventing those already paying tariffs from also being hit with duties on steel and aluminum.
Commerce Secretary Howard Lutnick said the president is “building an important partnership” with “domestic automakers and our great American workers.”
“This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing [a] runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” Lutnick said.
FOX Business’ Christina Shaw contributed to this report.
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