Trump tariffs take a $1bn bite out of GM earnings; shares fall
The largest US carmaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4bn (R70,198,998,400) to $5bn (R87,748,748,000). GM said it could take steps to mitigate at least 30% of the impact. Shares fell about 6% in early trading.
The carmaker's revenue in the quarter ended June 30 fell nearly 2% to about $47bn (R824,838,231,200) from a year ago. Its quarterly adjusted earnings per share fell to $2.53 (R44.40) compared with $3.06 (R53,71) a year earlier. Analysts on average expected adjusted profit of $2.44 (R42,82) per share, according to data compiled by LSEG.
GM's adjusted earnings before interest and taxes was among corporations that revised annual guidance due to the impact from US President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between $10bn (R175,501,993,000) and $12.5bn (R219,377,491,250). The company on Tuesday stood by the forecast.
Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit centre – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year before.
Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. Jeep-maker Stellantis on Monday warned tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about €300m (R6,177,180,000) in the first half of the year.
Shares of rival Ford Motor and US-traded shares of Stellantis fell about 1% on Tuesday morning. The carmaker took steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of petrol-powered cars and trucks by 2035.
GM announced in June it would invest $4bn at three US facilities in Michigan, Kansas and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The carmaker imports about half the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its US-sold vehicles domestically.
Car companies are increasingly shifting their focus to bolstering the core lineup of petrol trucks and SUVs as the growth rate of EV sales has slowed. Demand for battery-powered models has slowed after rapid growth earlier this decade.
The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by the US Congress will eliminate $7,500 (R131,658) tax credits for buying or leasing new electric vehicles and a $4,000 (R70,217) used-EV credit at the end of September.
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The Citizen
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- The Citizen
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Discovery Life's Claims Experience for the 2024 calendar year shows that for severe illness claims, cancer was the leading claim cause at 41%, with heart and artery claims next at 16%, followed by nervous system claims at 13%. Of the severe illness cancer claims, skin cancer was the top cause among men aged 40 and younger (44%), while breast cancer accounted for 43% of cancer claims among women aged 40 and younger. Cancer was also the largest cause of disability claims in this age group (29%). Friedlander adds that two in five income protection claims were paid to clients aged 40 or younger in 2024. One in four of these were for permanent conditions. However, these permanent claims made up 67% of the total rand amount paid out. This highlights the value of income protection, especially for permanent claims where these clients will receive an income going forward. 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IOL News
7 hours ago
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REVIEW: Jaecoo J7 SHS plug-in hybrid impresses with its advanced tech and refinement
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This is because it can operate both as a parallel hybrid, in which both the petrol and electric motors power the vehicle at the same time for maximum performance, or as a series hybrid, wherein the petrol engine acts as a generator to charge the battery when it's running low. The J7 SHS can operate in series and parallel hybrid modes. Image: Supplied Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ And this is what makes it more economical than a traditional PHEV, which can get thirsty after the battery is depleted. This is because in series hybrid mode, the petrol engine is operating in a more efficient range as it powers the battery, rather than directly driving the wheels, which the 150kW e-motor does with ease all on its own. 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IOL News
9 hours ago
- IOL News
Stellantis to raise its compact SUV game in SA with Opel Frontera and Citroen Basalt
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Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ To that end, the current Indian-built C3 and C3 Aircross models, which are more affordable than their European-built predecessors, will be joined in early 2026 by the sportier C3 Basalt crossover. Opel is also set to launch its new Frontera early next year, he said, although it's unclear whether the German product would compete in the same entry segment. What is a Citroen Basalt? Developed primarily for the Indian and South American markets, the newcomer is essentially a sportier version of the C3 Aircross, featuring coupe-inspired body styling and a lower roofline. The Basalt is due in early 2026. Image: Supplied Citroen says it combines the dynamism of a Coupe with the robustness of an SUV, although the performance is not altogether sporty. In India, which will inevitably supply SA's vehicles, the Basalt is offered with two powertrain choices. The manual version features a 1.2-litre normally aspirated petrol engine delivering 60kW and 115Nm. The six-speed automatic model has a turbocharged version of that engine, offering 81kW and 205Nm. Opel Frontera to target Duster? Built on the same Stellantis 'Smart Car' platform as the Citroen C3 Basalt and C3 Aircross SUV, and sharing its bodyshell with the latter, the Opel Frontera was designed to compete with affordable SUVs such as the Renault Duster. Built in Slovakia it does appear to be a touch more upmarket than the C3 Aircross, although South African pricing and specifications are not confirmed as yet. Opel Frontera mild hybrid in base form. Image: Supplied In European markets it is sold with a mild hybrid 1.2-litre turbopetrol engine, in 74kW and 100kW guises, and a fully electric version is offered to. Its exterior design follows a more rugged interpretation of Opel's 'Pure' design philosophy, and the cabin has a focus on practicality, with a luggage capacity of 460 litres. Inside it differs from its Citroen sibling, with a typically Opel 'Pure Panel' cockpit that combines two 10-inch screens. Future plans and local production These two models will give Stellantis a firmer footing in the compact SUV space, while the recently launched Opel Grandland and upcoming Alfa Romeo Junior will expand its presence in the premium SUV segment. The company recently consolidated its five core brands (Citroen, Peugeot, Fiat, Jeep and Opel) into 32 'under one roof' dealer operations, while five standalone Alfa Romeo dealerships remain outside of this structure. Stellantis is pressing ahead with its plans to produce the Landtrek one-tonne bakkie at a new facility in Coega in the Eastern Cape, and this will now be joined by two additional models, including a 'new energy vehicle'. Speaking of the revised plan at Stellantis Week recently, Whitfield declined to provide further details on the new locally assembled models, but said an announcement would be made before the end of this quarter. ALSO READ: Stellantis revises South African Landtrek production plans IOL Motoring
