General Motors is expecting less impact from tariffs after the recent U.S. Supreme Court decision that overturned some of the duties imposed on imports, while also showing the early impact of the change in its EV strategy.
Zooming in: In its first-quarter earnings report released today (April 28), GM downgraded its expected gross tariff costs by $500 million to between $2.5 billion and $3.5 billion.
The earnings report showed the automaker sold 626,000 vehicles in the U.S. and 1.3 million worldwide, excluding European markets, in the opening quarter of 2026, earning a 16.5% market share. Total U.S. sales were down 67,000 from the opening quarter of 2025.
The report emphasized GM’s strategy to keep inventories “lean” to maintain agility in the market. With this strategy taking shape:
The reported inventory was 516,000 units. The average transaction price for the quarter was $52,000.
More than half of the GM sales were trucks, 324,000, gaining a 32.1% share of the market.
GM reported Chevrolet Silverado sales increased by 8% year-over-year. It also said that it was the top quarter for the Chevrolet Trax and Buick Envista.
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Changing strategy: The report reflects the automaker’s EV strategic realignment, including transitioning its Orion assembly plant from EV to ICE production, discontinuing the production of the BrightDrop electric van, and lowering production of other vehicles. In the first quarter:
GM decreased its wholesale EV volume by 23,000.
GM said it was second in the U.S. in EV sales, with 13% of the market.
Cadillac EV sales were up 20% compared to Q1 2025, with 9,500 vehicles delivered. More than 10,500 Chevrolet Equinox and Blazer EVs were sold.
What they’re saying: In her letter to shareholders, GM CEO Mary Barra stated the automaker is operating in a “very dynamic environment” at this time, while pointing out its status in the industry.
“We have solid momentum in our core operations. We maintained overall sales leadership in the U.S. and Canada,” Barra said.
She also highlighted the company’s performance in the crossover SUV segment.
“Since we began refreshing our lineup in 2023, crossovers have grown from just over 40% of GM sales to more than 46%, and no one offers more budget-friendly choices,” Barra said. “At the same time, crossovers like the Chevrolet Trax and Equinox, the Buick Envista and GMC Terrain, and the Chevrolet Traverse and GMC Acadia, have become significant contributors to our profitability.”
What it means: With tariffs expected to have less of an impact on GM, and the company's recent shift in EV strategy, dealers can expect tight inventory levels and incentives lower than the industry average.
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