GM Bets $2B Profit Jump on Supersized SUVs as Regulatory Winds Shift
Detroit’s automaker is cashing in on America’s appetite for oversized vehicles. General MotorsGM projects earnings will climb by as much as $2B this year — a healthy jump from 2025’s estimates. The company is now prioritizing high-margin trucks and SUVs like the GMC Sierra and Cadillac Escalade while scaling back EV output as looser fuel economy rules shift incentives back to gas-powered profits.
- GM beat Wall Street’s fourth-quarter expectations and rewarded investors by authorizing $6B in share buybacks while bumping its quarterly dividend to 18 cents.
- It now expects net income of up to $11.7B this year, a sharp rebound from 2025’s $2.7B after $7.6B in EV write-downs dragged results last year.
Road ahead: CEO Mary Barra said GM is operating in a US policy environment that is “increasingly aligned,” signaling confidence despite lingering headwinds. CFO Paul Jacobson warned tariffs could cost $3B to $4B annually and said, “I don’t think anyone really knows what the steady state EV demand will be in this new environment” after subsidies were cut. Even so, Piper Sandler’s Alexander Potter praised the execution, noting the company “re-upped its buyback authorization despite fears EV charges impact the pace of repurchases.”