GM Shares Rise 2.62% Despite 318th Market Volume Rank as Tariff Strategy and $4 Billion US Investment Signal Resilience

Generated by AI AgentAinvest Market Brief
Wednesday, Aug 13, 2025 7:26 pm ET1min read
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- General Motors (GM) shares rose 2.62% on August 13, 2025, despite ranking 318th in market volume, driven by tariff mitigation strategies and $4 billion U.S. production investments.

- CFO Paul Jacobson outlined plans to offset $4–5 billion in tariffs via manufacturing shifts, fixed-cost cuts, and software revenue growth from OnStar/Super Cruise ($4 billion deferred income).

- GM projected $7.5–10 billion 2025 free cash flow, emphasizing resilience through China restructuring, EV margin improvements, and North American production expansion to reduce tariff exposure.

General Motors (GM) rose 2.62% on August 13, 2025, with a trading volume of $380 million, ranking 318th in the market. During the J.P. Morgan Auto Conference, CFO Paul Jacobson outlined strategies to counter $4–5 billion in tariff impacts, targeting a 30% cost offset through manufacturing shifts and fixed-cost reductions. The company plans to invest $4 billion in U.S. production capacity, adding nearly 2 million units, while leveraging software revenue growth from OnStar and Super Cruise, which generated $4 billion in deferred income.

GM emphasized resilience amid global trade challenges, projecting $7.5–10 billion in free cash flow for 2025. Restructuring efforts in China have driven profitability and market share gains, while EV strategy adjustments focus on reducing losses and boosting margins. The firm also highlighted progress in optimizing fixed costs and expanding its North American production footprint to enhance flexibility and reduce tariff exposure.

The backtest of a strategy buying top-volume stocks and holding for one day from 2022 to 2025 yielded a profit of $2,385.14, reflecting moderate returns with steady growth over the period.

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