General Motors (GM) has experienced a dive in profits, the news coming as its leadership continues touting electric vehicles (EV).
According to the Daily Mail, General Motors “reported $1.89 billion in net income for the second quarter, a sharp $1.1 billion decline from $2.93 billion during the same period last year. That’s a 35 percent drop from the previous quarter alone,” the outlet said on Tuesday, noting it happened amid “regulatory upheaval” and “tariff pressure.”
GM has been trying to win over President Donald Trump’s administration even though some of the company’s initiatives that include trying to keep EV mandates and subsidies do not align with his agenda, Breitbart News reported in June.
“When Trump first announced tariffs on imported cars to the United States market, GM CEO Mary Barra jumped to seemingly support the tariffs despite the automaker importing millions of foreign-made cars every few years,” the article said.
Republicans recently passed Trump’s “Big, Beautiful Bill” that cut consumer subsidies for EVs and changed corporate fuel economy targets, per the Mail report.
However, Barra has held on to the company’s EV strategy, reportedly telling shareholders in a recent letter that the company is growing in EVs because people love what they have to offer.
“Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,” Barra said.
In 2024, Barra remained committed to taking the company fully electric by 2035 even though third-quarter earnings showed EVs were not profitable, according to Breitbart News:
“That is the plan we’re still executing,” Barra told the New York Times of GM’s plans to fully transition to EVs by 2035 regardless of who is in the White House.
Barra first made the commitment in 2021 after President Joe Biden and Vice President Kamala Harris took office. The commitment, though, has not made EVs any more profitable.
Meanwhile, GM recently announced plans to expand production of gas-powered vehicles in Michigan.
“While GM has seen a surge in EV sales recently, overall customer demand for EVs has not met expectations,” the Breitbart News article said.
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