DETROIT (WWJ) -- General Motors says it’s putting the costs of EV changes in the rear view mirror, as the company posts strong second quarter earnings.
GM posted what it says is a final one time charge of $2.3 billion, lowering its net income by 31%, to $1.3 billion. Take out those one time charges and they posted a pre-tax profit of $3.9 billion, up 29% from the same time in 2025.
“The business continues to perform very well. Customer demand in North America remains strong driven by our very attractive lineup of pickups and SUVs,” said CEO Mary Barra, in a letter to shareholders. "Pricing is consistent, and we delivered the best quarter and first half ever for new Super Cruise -equipped vehicles.”
GM has now taken $11 billion in charges related to changes in EV plans. The company says it expects to lose less money on EVs going forward.
These profits come from strong sales of gasoline powered vehicles, particularly large pickup trucks and SUVs. GM recently revealed new versions of its important Chevy Silverado and GMC Sierra pickups, which should help the bottom line in the future.
The company is profitable around the world, other than China. But GM’s profit engine is North America, where pre tax earnings increased by 42% to $3.4 billion. That’s an important number here in the Detroit area, because it’s at the center of the profit sharing formula.
CEO Mary Barra increasing GM’s full year pre-tax guidance by $500 million to a range between $14 billion and $16 billion. She expects to finish the year strong.
“We expect these trends will continue to strengthen our performance into 2027 and beyond because we have multiple engines of margin expansion and growth while maintaining our capital discipline.”
