THE CFO of General Motors has spoken out on the brand’s recent price hikes and plans to keep cars affordable.
The US car giant’s chief, Paul Jacobson, told reporters at a Barclays conference that if US tariffs became permanent, the company would have to consider moving plants.
According to a report by Reuters, GM and other automakers are keeping a close watch on how President Trump’s proposed tariffs on vehicles and parts from Canada, Mexico and elsewhere impact their businesses.
The brand’s executives have said they’ve been moving more inventory across borders ahead of tariffs potentially hitting.
They’re also evaluating other actions to help mitigate costs on the business.
This comes as President Trump said he will introduce a 25% tariff on automobiles starting in April.
He also delayed 25% tariffs on goods from Mexico and Canada for a month, having introduced them days into his second term as president.
Jacobson said: “If they become permanent, then there’s a whole bunch of different things that you have to think about in terms of, where do you allocate plants, and do you move plants, etc.
“Those are questions that just don’t have an answer today, because I can tell you, as much as the market is pricing in a big impact of tariffs and lost profitability, think about a world where, on top of that, we’re spending billions of capital, and then it ends.”
This comes just days after GM abruptly ended its deal with its largest customer Jack Cooper, the largest female-owned, union-affiliated vehicle logistics company in the US.
“We can confirm that Jack Cooper Transport management has informed us of their plans to unilaterally stop services to GM, effective immediately,” a recent statement by General Motors said.
“In light of this material breach of their agreement and the ongoing and timely needs of GM’s business, we have no choice but to implement contingency plans with other providers.
“We do not anticipate any further disruptions to the delivery of our vehicles.”
However, Jack Cooper fired back and blamed GM for the axed deal.
Elsewhere, GM’s great rivals, Ford, have been forced to push back the launch of a potentially top-selling truck by at least a year.
The US automaker has reportedly been in contact with suppliers about a delay to the next incarnation of the F-150 pickup truck.
According to reports, Ford is now set to keep the current model until 2028, having previously been expected to release the 15th generation iteration with both gas and hybrid power in 2027.
Code-named P736, the iconic pickup was set to be produced at Dearborn Truck and Kansas City Assembly – according to three auto supplier executives.
They were also informed that production of the current P702 version, first introduced in 2021 and refreshed in 2024, will be extended to 2028.
However, the delay won’t impact the future of the F-150 Lightning – the pickup’s all-electric equivalent that launched in 2022.
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