GM's $5 Billion Bill of Horror Comes Due As Decades of Offshoring Backfires Spectacularly…

Another one bites the dust…

GM just dropped its updated 2025 forecast, and shocker… it reads more like a confession under duress than anything. In short, the bane of Ford's existence is bracing for up to $5 billion in tariff-related costs, mostly thanks to Trump’s made-in-America-or-die trade policy reboot, which just turned GM’s balance sheet into a hostage situation. 

(Source: Giphy) 

The company slashed its full-year net income guidance down to $8.2 billion–$10.1 billion, which pretty much screams they’re bleeding out and doing it publicly—especially since their previous forecast was $11.2 billion to $12.5 billion. Of course, CFO, Paul Jacobson, joined the call and tried to make the “were getting our teeth kicked in” sound manageable. The solution, as we’re told, is they’re hoping to offset some of the damage by… *checks notes*... making more cars. Which honestly, is hilarious if you ignore the last four decades of offshoring and labor arbitrage that made their current margins possible in the first place. Now they want to pretend Indiana solves everything. Sounds legit. 

Additionally, Mary Barra, GM’s CEO and queen of the long pause before saying absolutely nothing, told investors they plan to lean into their U.S. manufacturing footprint. As if tariffs are just a minor speed bump and not a loaded gun pointed at their most affordable cars, like the Chevrolet Trax and the Buick Envista—both imported from South Korea, and both now carrying a financial body count.

(Source: WSJ) 

She didn’t say whether they’ll raise prices, which means they’re absolutely going to raise prices. You just won’t see it until you’re deep into the dealership finance office, getting raw-dogged on APR. Meanwhile, there’s also a GM recall going around that’s about as contagious as the measles. Half a million SUVs and trucks with engine issues. That’s another $500 million out the door. So on top of a trade war, GM is also playing whack-a-mole with quality control. 

(Source: CNBC) 

But, but, but… don’t worry tree-huggers, because GM says their EV investment is still on track. Translation: They still plan to hemorrhage billions while dumping more capital into a segment that half the country is currently torpedoing. Regardless though, GM posted the usual soundbites to make this look more like a growth story instead of a faceplant. "Strengthening the supply base," "leveraging existing assets," "resilient supply chain." But the real story is that GM is getting screwed by the same playbook they’ve been milking for decades.

They built an empire on cheap labor and cross-border logistics, and now that the rules are changing, they’re scrambling like it’s the last round of musical chairs and someone just shot the DJ. And yet, they delayed their guidance call until Trump made his tariff announcement, which tells you everything. They knew it was going to be ugly. They just hoped the Street was too distracted to notice. 

(Source: Giphy) 

Spoiler: The Street noticed. And while the company tries to spin this as manageable, the numbers are screaming something else. Tariffs are going to eat up to a quarter of their profits. And if you think Ford or Stellantis are any better positioned, well don’t say I didn’t warn ya. Meaning, if your portfolio is even the slightest affiliated with these stocks… keep your head on the swivel. The bills are coming due, and you don’t want to be in the crosshairs when they get paid.

For now, place your bets accordingly and stay safe out there, friends. Until next time…

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News holds positions in Ford as mentioned in the article.