General Motors Company

Global automakers face a doubled problem after President Trump declared that from January 1 next year, the US will impose 50% tariffs on Canadian-made vehicles, auto parts, and trucks. One industry executive said, "We must not let Canada be treated like China in January." According to Barclays, Canadian-made vehicles account for only about 6% of US sales in 2025, but if tariffs double, Ford Motor, General Motors, Stellantis, Toyota, and Honda will face significant additional costs on their main models. Moreover, higher tariffs on parts would hit the entire US automotive supply chain. Some industry sources interviewed by Reuters suggested that since the tariffs are months away, there is still room for both sides to reach an agreement. Toyota and Honda are expected to be the most affected, as according to the Canadian Automobile Manufacturers Association, they account for over 75% of the 1.2 million vehicles produced in Canada in 2025, most of which are exported to the US.

General Motors is under federal investigation for potential brake failure risks affecting over 1.1 million vehicles equipped with its eBoost brake-by-wire system. US safety regulators opened the probe to assess reports of braking performance issues and possible safety hazards for drivers. The review could lead to recalls, repairs, or other corrective actions depending on the findings. Investors are monitoring potential regulatory, legal, and reputational impacts for GM as the probe progresses. The main near-term financial risk is the cost of any recall, repair, or software fix if regulators conclude the eBoost system creates a safety defect, which could pressure margins already affected by quality-related outlays. The clearest signal for investors will be the outcome of the investigation, particularly whether it triggers a formal recall with quantified repair obligations across the affected vehicles.

Ford Motor Company announced on August 12, 2026 that it will increase US production of its Lincoln vehicles starting in 2030 and phase out imports from China entirely, a move the company said will generate thousands of direct and indirect US jobs. Days earlier, Samsung SDI acquired General Motors' 49.99% stake in SynergyCells, ending a $3.5 billion US battery joint venture between the two companies. Ford CEO Jim Farley called Lincoln a quintessentially American brand and said the company builds in America because it believes in America, noting Ford assembled more than 2 million vehicles domestically in 2025, more than any other automaker. Ford reported roughly $3 billion in gross tariff costs in 2025, with about a $2 billion hit to earnings even after offsets, while General Motors expects gross tariff costs of $2.5 billion to $3.5 billion this year alone, a burden that could eat more than 20% of its operating profit. Samsung SDI said it will keep working with General Motors on next-generation prismatic battery technology and plans to repurpose the partially built Indiana plant, originally designed for 27 gigawatt-hours of annual EV battery output, to serve the fast-growing energy storage systems market instead.

General Motors disclosed a $4.5 billion purchasing facility with Procura Auto Parts to secure components during supply-chain disruptions, while Ford said it will move production of some Lincoln models from China to the United States starting in 2030. GM's facility, funded by a bank syndicate led by JPMorgan Chase and Santander, prepays suppliers so GM can avoid paying for stored parts until needed, though it pays interest, premiums, and an annual fee on unused amounts. Ford's shift targets the Lincoln Nautilus, which faces a 52.5% US tariff, and builds on existing domestic assembly of the Navigator in Kentucky and the Aviator in Chicago. GM expects gross tariff expenses of $2.5 billion to $3.5 billion this year, while Ford pegs its net tariff hit at about $1 billion. GM was held by 77 hedge funds as of Q1 2026, down from 81, and Ford by 50, down from 52.

Ford and Stellantis each fell 4% after President Trump announced 50% tariffs on all Canadian vehicles and parts starting January 2027. Ford stock was down to $13.87 and Stellantis to $5.19 in Monday mid-morning trading, while General Motors slipped 2% to $86.28. The announcement came in a Truth Social post in which Trump accused Canada of ripping off the United States and cited a $60 billion trade deficit. The move follows the collapse of U.S.-Canada trade talks late Friday, with Canada's ambassador Mark Wiseman saying the written trade text diverged from what Canada believed it had agreed to. Washington separately applied 50% tariffs to about $20 billion of Canadian goods, and Canada announced counter-tariffs scheduled for September 8.

Samsung SDI has agreed to reduce its stake in Samsung Display from 15.2% to 10.2%, selling 13.09 million shares at KRW 304,000 each to free up KRW 4.45 trillion, or US$3.2 billion, for investment in future growth businesses. Samsung Display will buy back the shares as treasury stock, with the final valuation subject to change during the repurchasing process. The move comes as Samsung SDI faces rising investment demand in the US amid falling battery electric vehicle sales following the withdrawal of purchase incentives worth up to US$7,500 per vehicle last year. Samsung SDI recently agreed to take over General Motors' almost 50% stake in its Synergy Cells joint venture, giving it full control of the US$3.5 billion battery plant under construction in New Carlisle, Indiana.

US-Canada trade talks collapsed over a range of issues where the written text of a potential deal was at odds with what the Canadian side believed it had agreed to, Prime Minister Mark Carney's top US envoy says. Mark Wiseman, Canada's ambassador to the US, said in an interview Sunday that there was no one issue that led talks to collapse late Friday, a development that triggered new tariffs and a potentially escalating trade fight. Wiseman likened the negotiations to a handshake deal to buy a house, only for the prospective buyer to learn appliances weren't included, the furnace had no warranty and neither the garage nor yard is on the same property, and ultimately walk away. The US proceeded to apply a 50% tariff on about $20 billion in Canadian goods, and Carney announced retaliation that will take effect on Sept. 8. Wiseman said Canada needed medium and heavy duty vehicles to be included in tariff relief, an issue affecting General Motors Co. and Ford Motor Co., two US automakers operating in Canada, but added that this was not why the deal fell apart. Carney also said the US demanded that Canada constrain its ability to do separate trade deals with other nations, and that the administration was looking to curtail the use of French, one of Canada's two official languages, in digital services and US-based streaming services. Wiseman declined to say whether Canada was open to restarting talks, but said communications with the administration continue and that the talks were cordial throughout.

The National Highway Traffic Safety Administration opened a probe into 997,743 pickup trucks and SUVs made by General Motors over engine failure concerns. The vehicles include the Cadillac Escalade, Chevrolet Silverado 1500 and GMC Yukon from model years 2021 to 2026, all fitted with GM's L87 engines. NHTSA said it received 499 reports alleging engine failures in vehicles that had already undergone an earlier recall remedy. GM recalled the L87 last year over the same concern and attributed the problem to a supplier. The engineering analysis will look at those post-recall failures and assess how effective GM's repairs have been, and it can lead to a recall request.

Rivian Automotive is closing the gap with Tesla in advanced driver-assistance technologies, making software a bigger part of its growth strategy. CNBC testing over hundreds of miles indicated Rivian's Autonomy+ technology was better than historical systems such as General Motors' Super Cruise, but Tesla's FSD was still more capable overall. Tesla navigated traffic signals, junctions, exit ramps and nearly 200 miles of combined highway and city driving with little assistance, while Rivian still needs driver input for some of these and can't change lanes by itself yet. Rivian plans to launch point-to-point driving later this year, moving Autonomy+ closer to what Tesla already offers today. Rivian's Autonomy+ subscription is priced at $49.99 per month, compared to Tesla's FSD subscription at $99 a month.

General Motors plans to stop Chevrolet sales in China after nearly 21 years, while Ford will stop producing Lincoln vehicles in China for the US market beginning in 2030. Chevrolet's China sales fell from over 767,000 vehicles in 2014 to less than 9,000 last year, a 98.8% decrease, prompting GM to focus on Buick and Cadillac. Ford's move targets the Lincoln Nautilus, its best-selling model and the only vehicle it currently makes in China for American buyers, which faces a 52.5% US tariff. CEO Jim Farley said the decision was prompted by the Trump administration's trade policies, and GM recently extended its SAIC joint venture until 2047 while planning at least 30 new energy vehicles domestically by 2030.

General Motors, Ford Motor, and Stellantis plan to tell the Trump administration that its proposal to tighten automotive rules of origin under the United States-Mexico-Canada Agreement would add at least $2 billion a year in costs and could hurt their competitiveness against foreign automakers. According to estimates by two of the major U.S. automakers, if requirements are introduced mandating that vehicles contain at least 50 percent U.S.-made parts, or if the North American parts content requirement is raised from the current 75 percent, the Detroit Three would face at least $2 billion in additional annual costs, on top of cost increases from various tariffs introduced since last year. General Motors has already indicated that its total tariff-related costs this year could reach $2.5 billion to $3.5 billion, potentially equivalent to more than 20 percent of its operating profit, while Ford estimates its net tariff burden at about $1 billion. The Office of the United States Trade Representative did not respond to a request for comment.

General Motors is selling its 49.99% stake in the $3.5 billion Indiana battery plant joint venture to partner Samsung SDI, making the South Korean company sole owner of SDI-GM Synergy Cells Holdings. The purchase price was not disclosed. The two companies will maintain a business relationship through a separate agreement to jointly develop next-generation prismatic battery cells, and GM will continue to source batteries from Samsung SDI. The exit comes amid weaker-than-expected U.S. EV demand following the expiration of the $7,500 federal EV tax credit in September 2025, and GM has already incurred roughly $6 billion in charges related to scaling back its EV strategy.

Tesla sold 93,579 units to Chinese buyers in July, according to official EV figures from the China Passenger Car Association, even as China's overall passenger car market fell 20.9% to 1.46 million retail units. The company also exported 66,330 units from its Shanghai plant during the month, while rival BYD failed to rank among the top three sellers in China. In the US, Tesla holds over half the EV market, helped by GM and Ford retreating from the segment, though US EV sales dropped about 20% in the first half of the year after the $7,500 federal tax credit ended. A 100% US tariff on Chinese EVs shields Tesla from cheaper rivals, and US oil reserves at a low not seen since 1983 could push gas prices toward $5, potentially boosting EV demand.

Japanese, Western, and Chinese automakers are facing sales headwinds in China's auto market. In the first half of 2026, Honda's China sales fell 34.6 percent year on year, Toyota Motor dropped 17.1 percent, and Nissan Motor declined 15 percent, with Japanese brands posting double-digit decreases. European players Volkswagen, Mercedes, and BMW saw drops of 20 to 30 percent, while US automaker General Motors slipped 6 percent. Chinese manufacturers also saw domestic sales fall below the previous year for the first time in two years, with EV leader BYD down 16 percent and Li Auto down 5 percent. A rapid expansion of production capacity for new energy vehicles, including EVs, has led to oversupply, pushing factory utilization rates well below the 80 percent breakeven level. The strain of overproduction is spilling over into exports, with so-called zero-kilometer used cars, where new vehicles are shipped overseas as used cars, now accounting for over 90 percent of used car exports, prompting authorities to question BYD and others. NIO CEO William Li expressed a sense of crisis, saying China's auto industry has entered its most brutal phase, as the state-led push to nurture the EV industry reaches a crossroads.

General Motors projected in 2021 that its connected-vehicle software and services could generate $20 billion to $25 billion in annual revenue by 2030, including more than $6 billion from OnStar Insurance alone, a target disclosed to investors years before Australian regulators opened a privacy investigation into Toyota and Hyundai. The Office of the Australian Information Commissioner is examining whether Toyota and Hyundai collect excessive personal data, share it with third parties without consent, or fail to properly delete it, a probe expected to last up to 18 months. Consumer group CHOICE previously found Hyundai sharing drivers' voice-biometric data with an artificial intelligence company, while Ford filed a patent for in-car advertising based on cabin audio and driving behavior. Cybersecurity researcher Vanessa Teague noted that manufacturers could easily install a physical kill switch for data transmission but choose not to, citing the revenue already promised to shareholders. The investigation highlights an industry-wide shift toward recurring revenue from data collected by connected cars, a business model GM explicitly acknowledged in its own risk disclosures as vulnerable to tightening privacy regulation.