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GM Reports Better-Than-Expected Q2 Earnings, Tariffs Weigh on Profits

General Motors (GM) has successfully concluded it’s $2 billion accelerated share repurchase (ASR) program, retiring 10 million shares in the second quarter of 2025. This initiative was part of a larger $6 billion share buyback authorization approved by the company’s board in February 2025. GM still has $4.3 billion available for future opportunistic share repurchases, signaling a continued commitment to returning capital to shareholders while investing in growth and maintaining a strong financial position.

The automotive industry is currently navigating important challenges, including sluggish sales of internal combustion engine (ICE) vehicles and mounting losses in the electric vehicle (EV) sector.Legacy automakers are facing increased competition from chinese manufacturers, who are gaining market share globally with attractively priced models, even in the face of tariffs in regions like Europe.

GM had temporarily paused its share buyback program in April due to tariff uncertainties but has since resumed its repurchase activities. The company’s management has indicated expectations for increased buyback activity in the latter half of the year, underscoring their strategy of balancing shareholder returns with strategic business investments.

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