Bloomberg Talks GM CFO Paul Jacobson Talks Q2 Earnings
Jul 22, 2025
Paul Jacobson, the Chief Financial Officer of General Motors, dives into the company's second quarter earnings, highlighting the financial impacts of recent tariffs on EV sales. He discusses strategic pricing adjustments and cost controls to maintain consumer trust. Jacobson emphasizes investments in U.S. production to enhance supply chain resilience post-COVID-19. He presents an optimistic view on future production stability tied to trade agreements and outlines GM's robust capital allocation strategies, including plans for share repurchases to boost shareholder returns.
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GM's Tariff Strategy
- GM absorbs 30% of tariff impact through cost savings and manufacturing changes rather than large price hikes.
- They maintain pricing discipline based on demand to protect consumers from steep tariff-related price jumps.
Supply Chain Resilience
- GM has already onshored many supply chain elements, with only 3% direct purchases from China.
- They are investing $4 billion to boost US vehicle production to over 2 million, increasing resilience against tariffs.
Timing of Tariff Offset Benefits
- Tariff cost offsets will start producing results in Q3 and Q4 of 2024.
- GM expects 0.5% to 1% pricing increases and cost initiatives in the second half of the year to partially mitigate tariff impact.