GM’s Strategic Shift: Can Duncan Aldred Navigate the Tariff Storm and EV Uncertainty?
65min read General Motors’ appointment of Duncan Aldred as President of North America marks a critical juncture for the automaker. With 33 years of experience at GM, Aldred brings a proven track record of brand revitalization—most notably turning Buick and GMC into customer-satisfaction leaders—but now faces a far more complex landscape. From U.S. tariffs on Asian imports to EV production delays, Aldred’s mandate is to balance legacy strengths with a rapidly evolving industry.
Aldred’s Track Record: Brand Revival Meets Operational Challenges
Aldred’s career has been defined by turning around struggling brands. At Buick, he shifted the focus from sedans to SUVs, launched premium sub-brands like Avenir, and achieved record dealer satisfaction scores. His leadership at GMC similarly drove pickup truck sales to historic highs. Now, as North America’s top executive, Aldred must apply this expertise to a broader portfolio under heightened scrutiny.
The stakes are immense. GM’s North America division accounts for roughly 60% of its global revenue, but its reliance on imported vehicles—from Buick’s 86% Asian production to broader supply chain vulnerabilities—has created a financial time bomb. shows a stock that has lagged peers amid EV execution concerns and geopolitical risks.
The Tariff Dilemma: Buick’s Existential Crossroads
Buick’s future hangs in the balance. Over 86% of its U.S. sales rely on vehicles produced in South Korea and China, exposing it to punitive tariffs. A 25% duty on Korean imports and 145% on Chinese goods could add $5,000–$6,000 to the price of entry-level models like the Envista, while the Enclave SUV could see its price surge to over $100,000.
highlights the brand’s precarious position. Analysts estimate tariffs could cost GM over $1 billion annually if passed to consumers—a move that risks pricing Buick out of its core market. Alternatives like relocating production to the U.S. face logistical and financial hurdles, as retooling plants would take years and billions in investment.
EV Hurdles: Delayed Targets and Market Realities
GM’s EV ambitions face execution challenges. The delayed retooling of its Michigan plant for electric trucks until mid-2026—pushing back its 2025 goal of 1 million North American EVs—underscores a broader reality. Despite a 40% jump in U.S. EV deliveries in Q2 2024, EVs still accounted for just 3.2% of GM’s total U.S. sales, reveals.
CEO Mary Barra’s pivot to “growing responsibly and profitably” signals a recalibration of aggressive timelines. Yet Buick’s delayed EV rollout—its first model, originally due in 2024, lacks a revised timeline—adds to investor concerns. Competitors like Tesla are waging price wars, while GM’s record 2024 results (doubled EV market share, $180 billion revenue) mask near-term uncertainties.
Aldred’s Path Forward: Balancing Act or Strategic Masterstroke?
Aldred’s strengths lie in operational agility and customer-centricity. His focus on modernizing services like GM Energy and OnStar aims to deepen brand loyalty. However, his success hinges on three critical moves:
1. Mitigating Tariff Risks: Negotiating tariff exemptions, accelerating U.S. production of key Buick models, or strategically pruning less profitable SKUs.
2. EV Execution: Leveraging partnerships (e.g., LG Electronics) to stabilize supply chains and accelerating Buick’s EV timeline.
3. Balancing Portfolios: Maintaining ICE sales (e.g., Enclave SUVs) while transitioning customers to EVs without alienating core buyers.
Conclusion: GM’s Stock—A Gamble on Leadership and Resilience
Investors must weigh Aldred’s credibility against the scale of GM’s challenges. On one hand, his track record of turning brands around and modernizing operations offers hope. On the other, the company’s stock—down 15% year-to-date—reflects skepticism about its ability to navigate tariffs and EV delays.
Crucial data points:
- Buick’s U.S. sales fell 12% in 2024, signaling vulnerability to price hikes.
- GM’s 2024 EV deliveries rose 40%, but its 3.2% EV market share lags Tesla’s 65%.
- Debt levels remain manageable (under $20 billion), but tariff costs could eat into margins.
Aldred’s appointment is a bet on leadership over quick fixes. If he can realign GM’s global supply chain, accelerate EV adoption, and preserve Buick’s relevance, investors may see a turnaround. Failure, however, could amplify calls for a broader restructuring. For now, the market is holding its breath—and GM’s stock price will tell the tale.
In the end, Aldred’s legacy will be defined not just by his past successes but by how he navigates this storm—and whether GM’s North American portfolio can remain the “best and broadest” in a world where old rules no longer apply.
