GM's Trading Volume Plummets 20.5% Ranking 70th in Market Activity Amid Tariff Woes and Recall Costs

On July 23, 2025, General Motors (GM) experienced a significant decline in trading volume, with a 20.5% decrease to 13.31 billion, ranking 70th in the day's market activity. The company's stock price also saw a notable drop, reflecting broader market concerns and internal challenges.

GM's second-quarter earnings report revealed a 35% decrease in net income, primarily due to a $1.1 billion impact from tariffs imposed by the Trump administration. Despite this setback, the company managed to achieve a second consecutive quarterly profit in China, which improved by $175 million compared to the previous year. However, the overall net income for the quarter was $1.9 billion, down from $2.9 billion in the same period last year.

GM's Chief Executive Mary Barra acknowledged the challenges posed by new trade policies and the evolving technological landscape. In response, the company announced plans to invest $4 billion in expanding production in Michigan, Kansas, and Tennessee, with a focus on building more small SUVs and large pickups in the U.S. instead of Mexico. This strategic shift aims to mitigate the impact of tariffs and position the company for long-term profitability.

In addition to tariff-related costs, GM faced other financial burdens, including a $300 million expense from recalling nearly 600,000 trucks due to an engine defect. The company also incurred $600 million in costs related to building up inventory of electric vehicles (EVs) as it launched new models and worked to boost plug-in sales. Weaker pricing on fleet sales further weighed on profits, contributing to a $200 million loss.

Despite these challenges, GM remains committed to its investments in electric and hybrid vehicles. The company's agility in adapting to new trade policies and technological advancements is seen as a key strength, positioning it for future growth and profitability.