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GM’s $1.1 Billion Loss: How Trump’s Tariffs Are Crushing America’s Auto Giant

General Motors’ second-quarter profit plunges by 32%, with tariffs taking a significant toll. The automaker warns of worsening financial impacts in Q3, but can new investments offset the damage?

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GM Faces $1.1 Billion Loss in Q2 2025 Due to Trump’s Tariffs: Will Investments Save the Auto Giant?
GM’s revenue and profit have taken a hit due to Trump’s tariffs, but long-term investments in U.S. manufacturing plants offer hope for recovery.


General Motors (GM), the largest U.S. automaker by market share, has faced a significant setback as Donald Trump’s tariffs continue to hurt its bottom line. The company announced on Tuesday that the 25% tariffs on foreign-made vehicles and parts, imposed in early April, reduced its operating income by a staggering $1.1 billion in the second quarter of 2025. GM is bracing for even more pain in the coming months, forecasting a $4 billion to $5 billion total impact from these tariffs for the year.

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The Financial Fallout

In its second-quarter earnings report, GM revealed that core profit fell 32% to $3 billion compared to the same period last year. The company also reported a nearly 2% decline in revenue, which dropped to about $47 billion. Shares took a hit, falling 3% in premarket trading.

The tariff situation is only expected to worsen in the third quarter of 2025, prompting GM to adjust its full-year core profit forecast. The automaker now predicts an adjusted core profit between $10 billion and $12.5 billion—down from its previous guidance. However, Mary Barra, GM’s CEO, remains hopeful that the company can mitigate at least 30% of the financial damage by improving its internal processes and supply chain efficiency.

Global Investments to Combat Tariffs

In response to these challenges, GM has set its sights on long-term solutions. The company announced plans to invest $4 billion in three U.S. auto plants in Michigan, Kansas, and Tennessee, with the goal of reducing its tariff exposure. These manufacturing upgrades are slated to come online in 18 months, and GM is hopeful that they will eventually reduce the impact of tariffs, especially on foreign-made vehicle imports.

GM’s efforts are backed by the company’s $888 million investment in its Tonawanda, New York, plant, which will support its next-generation V-8 engine. These investments are part of GM’s broader strategy to position itself for a profitable future despite the ongoing trade headwinds.


🇺🇸 The Impact on American Workers

The impact of these tariffs extends beyond GM’s bottom line. The U.S. automotive manufacturing industry employs nearly 1 million workers, with GM employing about 162,000 people globally. As the largest auto manufacturer in the U.S., GM’s struggles under the weight of tariffs highlight broader concerns about the future of American manufacturing in a post-trade war economy.

While GM’s efforts to weather the storm are commendable, the auto industry as a whole is also facing the highest average tariff rates since the Great Depression, with tariffs now sitting at 18.7%. This is impacting not just GM but other automakers like Stellantis, which reported a $350 million loss from tariffs in the second half of 2025.

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The Bigger Picture: A Costly Trade War

GM is not alone in facing the consequences of Trump’s trade policies. Other companies across various industries are dealing with the ripple effects, from inflation to increased costs for consumers. U.S. inflation rose to 2.7% in June 2025, partially due to these tariffs. GM, however, remains committed to adjusting its strategy, with Barra focusing on adapting to new trade and tax policies, and a rapidly evolving tech landscape.

Despite these challenges, GM’s sales in the U.S. market—its largest profit center—rose by 7%, and the company continues to maintain strong pricing on its pickup trucks and SUVs. The automaker even returned to a small profit in China, reversing the losses it faced there just a year ago.

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Tundra trucks and Sequoia SUV’s exit the assembly line as finished products at Toyota’s truck plant in San Antonio, Texas, U.S. April 17, 2023. REUTERS/Jordan Vonderhaar

Can GM Overcome These Trade Headwinds?

The global auto industry is undergoing a massive shift, with companies like GM investing heavily in electric vehicles (EVs) and autonomous technology. However, the tariff crisis is proving to be a major obstacle, especially for manufacturers like GM who rely on imports of foreign-made parts. The Brookings Institution has warned that while the impact of tariffs on U.S. auto manufacturing is still unclear, it has the potential to be net negative for the industry.

Despite the setbacks, GM’s long-term investments in U.S. manufacturing and its ongoing efforts to adapt to the changing global trade landscape could eventually turn the tide. However, for now, tariffs remain a significant challenge, and it remains to be seen whether GM can weather this storm without further financial strain.

for more update http://www.dailyglobaldiary.com

Automobile

“VW Makes a Bold U-Turn… Why the Iconic Scout Is Returning as Hybrids, Not EVs”

In a surprising industry shift, Volkswagen revives its legendary Scout brand with hybrid powertrains — as U.S. consumers turn away from fully electric cars.

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VW Revives Scout With Hybrid Power: A Bold Shift Ahead of 2027 Launch
Volkswagen revives its iconic Scout brand with rugged hybrid SUVs and trucks, marking a major shift in its U.S. strategy.

For the last several years, major automakers have been racing toward an all-electric future. But in a twist few insiders saw coming, Volkswagen (VW) — one of the world’s largest carmakers — is rewriting its own EV playbook.

The company has decided to revive its classic Scout line not as futuristic electric vehicles, but as rugged, long-range gas-electric hybrids. And if early demand is any measure, the American market is applauding the move louder than anyone expected.

A Comeback Rooted in Consumer Truth

According to Scott Keogh — the CEO of Scout Motors — more than eight out of ten reservation holders chose the plug-in hybrid or extended-range versions instead of pure EVs.

“The market clearly has spoken,” Keogh said during an interview, adding that the hybrid can deliver up to 500 miles on a tank while eliminating typical “EV drama” such as range anxiety or charger shortages.

Keogh, whose professional profile appears on , emphasizes that these buyers don’t want to abandon electrification — they simply want a version that fits American road realities.

Why VW Pivoted Away from Pure EVs

VW acquired Scout when it bought Navistar (the successor to International Harvester, Scout’s original parent) back in 2021. The revival was initially planned as a fully electric rebirth — inspired in part by Ford’s successful comeback with the Bronco SUV.

But with EV demand dipping sharply in the United States — especially after former U.S. President Donald Trump vowed to eliminate the $7,500 EV tax credit, calling it the “EV mandate” — the landscape shifted fast.

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Meanwhile, sales of large gasoline SUVs surged, and automakers like General Motors, Stellantis, and Ford scaled back ambitious electric truck plans. Even Tesla’s Cybertruck, despite global hype, has struggled to attract mainstream pickup buyers due to towing-range concerns.

By late 2024, VW realized the writing was on the wall: the Scout revival needed to match the American market’s real sentiment, not its projected one.

What the New Scout Lineup Looks Like

Scout plans to launch two flagship models in 2027:

  • Scout Traveler (SUV)
  • Scout Terra (pickup truck)

Both are expected to start at around $60,000 — and Keogh insists that the company will not slash this price, even without the EV tax credit.

“We’re not dropping $7,500 off the price,” he said confidently. “We don’t need to.”

The strategy appears to be working: Scout has already received more than 130,000 non-binding reservations, with 73% preferring the SUV.

Could the Pickup Truck Be Canceled?

Interestingly, Keogh didn’t rule out cancelling the Terra pickup if the hybrid truck segment weakens further — a move similar to what Ford is reportedly considering with the F-150 Lightning, as reported by The Wall Street Journal.

“That’s something we could look at,” he admitted. “But not now.”

Audi May Join the Story

The upcoming $2 billion Scout factory in South Carolina may eventually produce vehicles for Audi, VW’s luxury brand. Audi’s CEO has hinted at a U.S.-centric SUV — with reports suggesting it might share the Scout platform.

Scout Traveler Daily Global Diary - Authentic Global News


Keogh neither confirmed nor denied this:
“We’re capable of building for other brands… but Audi would have to answer that.”

Trump’s ‘America First’ Strategy Accidentally Boosted Scout

Ironically, while Trump’s policy shift is hurting other EV makers, it may strengthen Scout’s “Made in America” narrative.

Scout recently announced a $300 million supplier park in South Carolina, reinforcing its Americana identity. Keogh says the tax credit loss only affects Scout for four years and cannot determine the company’s “50-year decision.”

“You don’t build a brand based on money that may or may not exist,” he said.

A Return to Its Roots

Scout hasn’t rolled off an assembly line since 1980. With its revival set for 2027 — this time as a hybrid symbol of American outdoor culture — VW is hoping nostalgia, practicality, and a changing political environment will fuel one of its biggest U.S. comebacks.

Whether consumers embrace the new Scout the way they once cherished the original remains to be seen — but the early numbers suggest VW is finally speaking the language the American market wants to hear.

For more Update ; DALIY GLOBAL DIARY

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Elon Musk’s $1 Trillion Tesla Pay Deal Sparks Outrage: “He Has the Board Wrapped Around His Finger…”

As Tesla’s record-breaking compensation plan for Elon Musk stirs global debate, critics call it a “corporate capture” while supporters hail it as visionary reward for unmatched innovation.

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Elon Musk’s $1 Trillion Tesla Pay Deal Sparks Outrage — “He Has the Board Wrapped Around His Finger”
Elon Musk dances with a Tesla Optimus robot during the company’s annual shareholder meeting, moments before unveiling his $1 trillion pay deal.

It was anything but a typical corporate meeting.
On November 6, Elon Musk — the larger-than-life CEO of Tesla, SpaceX, and X — stormed the stage to a funk soundtrack, dancing beside one of Tesla’s Optimus humanoid robots. “Most shareholder meetings are snooze fests,” Musk quipped, “but ours are bangers.”

Behind the theatrics, however, lies a corporate controversy shaking Wall Street: Tesla’s $1 trillion pay deal for Musk — the largest compensation package ever proposed to a CEO in modern history.

A Billion-Dollar Question: Reward or Power Play?

The plan, initially approved years ago and now revived in new form, ties Musk’s earnings to Tesla’s market performance and profitability. In theory, it aligns his incentives with shareholders. In practice, critics argue it demonstrates something far more troubling — what governance experts are calling “corporate capture.”

According to financial analysts, Tesla’s board — composed largely of Musk loyalists and long-time associates — has effectively surrendered oversight to its chief. A report by The Financial Times described the dynamic bluntly:

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“Tesla’s board no longer checks Musk’s power — it amplifies it.”

Even The Economist noted that Musk now wields “near-monarchical control” over a publicly traded company, with little resistance to his personal decisions, tweets, or strategic whims.

Investors Divided Over the ‘Musk Empire’

To Musk’s fans, this trillion-dollar pay plan is simply the cost of brilliance. Under his leadership, Tesla became the world’s most valuable automaker, revolutionized electric mobility, and forced legacy carmakers like Ford and General Motors to follow suit.

“Elon Musk has created industries where none existed,” said one venture capitalist on LinkedIn, arguing that such vision deserves an equally extraordinary reward.

But others see it as reckless hero-worship. Corporate watchdogs warn that Tesla’s governance structure risks becoming a “cult of personality” rather than a responsibly managed enterprise. “Tesla is now more Elon than company,” wrote governance expert Lucian Bebchuk from Harvard Law School. “That’s dangerous for shareholders and for capitalism itself.”

Dancing with Robots, Dodging Oversight

Musk’s flair for spectacle — whether launching rockets, trolling competitors on X, or performing at shareholder events — often blurs the line between leadership and showmanship. His latest performance with a robot wasn’t just viral marketing; it was a symbolic reminder of who controls the stage, both literally and figuratively.

Behind the applause, however, investors and regulators are quietly asking: At what point does innovation turn into unchecked dominance?

The Bigger Picture: Corporate Power in the 21st Century

The Musk pay saga isn’t just about one man’s paycheck. It represents a broader trend in modern capitalism — where founders and tech visionaries command immense influence over boards meant to hold them accountable.

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As Jeff Bezos, Mark Zuckerberg, and Tim Cook steer trillion-dollar corporations, the balance between innovation and oversight continues to erode. Musk’s trillion-dollar deal, critics say, is simply the most extreme example yet.

The Verdict: “A Banger” or a Boardroom Warning?

For now, Musk remains unfazed. “The shareholders voted. The people have spoken,” he declared with a grin, as applause filled the hall. Yet, beyond the cheers and flashing cameras, the unease lingers.

Is Elon Musk a genius pushing humanity forward — or a corporate emperor rewriting the rules of accountability?

Only time, and Tesla’s next earnings report, will tell.

For more Update http://www.dailyglobaldiary.com

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The 2026 Cadillac Celestiq Just Got Even Pricier — Here’s Why It Costs Over $400,000 Now

General Motors’ ultra-luxury electric sedan, the Cadillac Celestiq, is getting a massive $60,000 price hike for 2026, with new features and exclusive updates meant to cement its status as America’s answer to Rolls-Royce.

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Cadillac Celestiq Price Soars Past $400,000 for 2026 — Here’s What’s New
The 2026 Cadillac Celestiq – GM’s handcrafted luxury EV masterpiece, now starting above $400,000, combines technology, elegance, and exclusivity.

The Cadillac Celestiq, the most luxurious and hand-built model ever produced by General Motors (GM), is about to become even more exclusive. As per a report by Automotive News, the 2026 edition of the Celestiq will now start in the low $400,000 range, marking a steep $60,000 increase over the 2025 version’s $340,000 base price.

A Price Tag That Matches Its Ambition

Cadillac says the price hike reflects the inclusion of the smart glass panoramic roof as standard, along with eight years of connected services. These updates aim to position the Celestiq not just as a car, but as a rolling expression of design, technology, and craftsmanship.

While the figure might sound staggering, Cadillac insists this EV isn’t just transportation — it’s a statement of what American engineering can achieve. “No two Celestiqs will ever be alike,” said a GM executive, referencing the bespoke personalization process that lets buyers hand-pick every inch of the car’s design — from custom paint finishes to hand-stitched interiors and even 3D-printed components.

cropped orange cadillac celestiq on country road Daily Global Diary - Authentic Global News


The Most Technologically Advanced Cadillac Ever

Under its sculpted body, the Celestiq rides on GM’s Ultium Platform — the same electric foundation used in vehicles like the GMC Hummer EV. Its dual-motor setup delivers a staggering 655 horsepower and 640 lb-ft of torque, allowing it to hit 0–60 mph in just 3.7 seconds in Velocity Max mode.

The sedan also features Magnetic Ride Control 4.0, adaptive air suspension, four-wheel steering, and Super Cruise, GM’s semi-autonomous driving system. Inside, you’ll find a pillar-to-pillar HD display, a 38-speaker AKG Studio Reference audio system, and even heated armrests — because why shouldn’t your elbows be as comfortable as the rest of you?

Exclusivity at Its Core

The 2026 Celestiq will continue to be built at the GM Global Technical Center in Warren, Michigan, in extremely limited quantities. Cadillac confirmed that all 25 units of the 2025 model have already been sold, and production for 2026 will remain just as restricted.

Unlike mass-market EVs from Tesla, the Celestiq isn’t meant to dominate sales charts. Instead, it serves as a halo product, showcasing Cadillac’s ultimate potential in electric luxury — a handcrafted rival to the Rolls-Royce Spectre and Bentley Flying Spur.

What Makes It Worth the Money

Every Celestiq undergoes a meticulous artisan-led build process that takes hundreds of hours per unit. Each car can be customized to reflect its owner’s personality — a reflection of Cadillac’s renewed philosophy of “Artful Obsession”.

Owners also receive a dedicated concierge from Cadillac’s bespoke division, ensuring a seamless design-to-delivery experience — something usually reserved for ultra-high-end European marques.

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The Bigger Picture

The Celestiq’s steep new pricing signals Cadillac’s confidence in its luxury EV direction. While Mary Barra, GM’s CEO, continues to emphasize an “all-electric future,” the Celestiq stands as a symbol that sustainability and opulence can indeed coexist — at a price, of course.

IMAGE CAPTION:
The 2026 Cadillac Celestiq – GM’s handcrafted luxury EV masterpiece, now starting above $400,000, combines technology, elegance, and exclusivity.

For more Update http://www.dailyglobaldiary.com

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