General Motors (GM), the largest carmaker in the United States, reported a major financial setback in the second quarter of the year, with profits plunging by over a third and losses exceeding $1 billion. The company attributed the downturn primarily to the impact of tariffs on its operations.
Despite the loss, GM’s CEO has pledged billions in new investments within the United States, aimed at reshaping the customer experience at local dealerships and reinforcing the company’s domestic footprint.
The announcement comes amid wider industry struggles. Earlier in the week, Stellantis, the manufacturer of Jeep and Ram, reported a $2.86 billion net loss this year, also citing tariffs as the key contributing factor.

Joe Hill, general sales manager at Shea Buick, GMC, and Chevrolet, shared concerns about shifting customer sentiment during an interview with NewsNation’s Morning in America. According to Hill, business was strong through April, but foot traffic noticeably declined in May.
“The biggest concern we have is customer sentiment,” Hill said. “Are they hesitant to make big purchases because of tariffs or even just the discussions around them?”
Hill also highlighted concerns around employment and the broader economic impact on local communities, particularly in smaller towns where dealerships serve as key job providers. He acknowledged uncertainty in the short term but noted that customers are turning to used vehicles as a more affordable option amid pricing anxiety.

While used car sales have remained steady at his dealership, Hill noted that delays in overseas shipments have slowed the delivery of car parts. Meanwhile, the automotive sector is also anticipating upcoming regulatory changes concerning electric vehicle mandates later this year.
Despite the challenging climate, GM has announced it will not raise vehicle prices in response to tariff pressures, aiming to maintain consumer confidence and market stability during a turbulent period for the American auto industry.
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