General Motors (GM) has lifted its profit outlook for 2026 after posting stronger than expected first-quarter results and lower than expected tariff costs.
The US automaker reported an 11 per cent year-on-year profit increase in North America – covering the USA, Canada and Mexico – and has raised its full-year guidance to between US$13.5 and $15.5 billion (A$18.8-21.6bn).
GM also expects to spend less on tariffs than previously forecast, revising its estimate from between US$3 and $4 billion (A$4.2-$5.5bn) to between US$2.5 and $3 billion (A$3.5-$4.2bn).
The reduction follows a February ruling by the US Supreme Court that a 10 per cent tariff on imports into the US was unlawful, forcing the White House to refund previously collected duties.
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However, GM warned that lower tariff costs will be partly offset by rising parts and material costs linked to conflict in the Middle East.
“We are working to offset these cost pressures by reducing spending in other areas, and by continuing to find efficiencies across the business,” GM CEO Mary Barra said.
“But we believe it’s prudent to wait and see how events unfold before we make any further changes to guidance.”
Despite lifting its earnings outlook, GM has trimmed its net income forecast for 2026 to between US$9.9 and $11.4 billion (A$13.8-$15.9bn), down from US$10.3 to $11.7 billion (A$14.3-$16.2bn) previously.
New-vehicle sales in the US fell by 14.2 per cent year-on-year in March, compared with an overall market decline of 11.4 per cent.
GM’s best-selling model, the Chevrolet Silverado pickup, was the second-most popular vehicle in the US behind the Ford F-Series, which includes the F-150 also sold in Australia.
The F-150 has remained on top despite recent stock shortages in the US, which Ford Australia has said won’t affect local supply.
While electric vehicle (EV) sales have surged in Australia – rising by 88.9 per cent year-on-year in March to a record 14.6 per cent market share – EV demand has softened in the US following the removal of federal incentives in October 2025.
Ms Barra said GM is well placed to respond to shifting consumer demand amid rising fuel costs linked to the war with Iran.
“I think we’re well prepared with a portfolio that can stand against anyone when we look at how consumer behaviour might shift depending on how long the war lasts,” she said.
GM, like Ford and Stellantis, has been impacted by tariffs and a scaling back of EV investment, recently announcing an indefinite delay to its electric truck program in favour of combustion and hybrid powertrains.
Ford has taken a similar approach, ending production of the electric F-150 Lightning in 2025, with its successor expected to adopt extended-range electric vehicle (EREV) hybrid powertrain technology.
In Australia and New Zealand, General Motors Specialty Vehicles (GMSV) sells a limited range including the Silverado and Corvette supercar, and the GMC Yukon full-size SUV.
Sales of the Corvette and Silverado are down year-on-year, while the Yukon has recorded 106 sales so far this year, in addition to the 342 units sold last year after its launch in May 2025.
Cadillac, meantime, so far sells only the large Lyriq electric SUV in Australia, but is set to introduce three new electric SUVs here by the end of this year as it expands its local dealer network.