GM has plans ready for Trump Canada and Mexico Rates

General Motors executives are closely tracking President Trump's plans to impose tariffs on imports from Canada and Mexico, but the company is not yet making important changes in its strategy in North America in response to threatened tariffs.

The automobile manufacturer has gathered an “extensive play book” of possible options, but does not establish them in its place “until the world changes dramatically, and we see a permanent level of tariffs in the future,” said the financial director of the Company, Paul Jacobson, to reporters at a telephone conference on Monday night.

“I will not go into details exactly, but we have been preparing for that and we want to make sure we are prudent and do not react exaggeratedly,” he added.

Trump said last week that he planned to impose 25 percent tariffs on the assets of Canada and Mexico from Saturday, February 1. produce vehicles and components in those countries, and probably increase the prices of many vehicles sold in the United States.

GM produced almost 900,000 vehicles in Mexico in 2024, more than any other car manufacturer, and most of them were sent to the United States. Among them are the Chevrolet Silverado and GMC Sierra trucks, as well as the sports utility vehicle Chevrolet Equinox, all the best selling and large sources of profits for the company. It also produces some silver and electricity delivery trucks in Canada.

GM said Tuesday that he lost $ 3 billion in the last three months of 2024, derived from an expense no helmet of $ 4 billion related to a restructuring of his joint business operations in China. The company's income increased by 11 percent.

For all 2024, GM reported a gain of $ 6 billion, below $ 10.1 billion in 2023. Almost all its profits come from North America.

The company also said that its electric vehicle business is progressing to become profitable. The company produced around 189,000 electric vehicles in North America last year and hopes to produce around 300,000 in the region in 2025, Jacobson said.

The GM electric vehicle business can also suffer if Mr. Trump and Republicans in the Congress repeal or reduce the tax exemptions of the Biden era that make these cars and trucks more affordable and provide to the incentive companies to manufacture Batteries in the United States.

In a letter to the shareholders, the executive director of GM, Mary T. Barra, said that the company has emphasized in its conversations with the Congress and the White House the importance of a strong manufacturing sector and the US leadership in advanced technologies.

“Whatever happens on these fronts, we have a wide and deep portfolio of ice vehicles and electric vehicles that are growing market share,” he said, referring to vehicles with internal combustion engines and electric vehicles, “and we will be agile and execute in the most efficient way possible. ”

Due to the strong performance of the company in North America, GM said that he would pay bonds of $ 14,500 each to 46,000 members of the United Car workers union who work in their US plants.