General Motors Aims to Boost U.S. Production to Become Top Assembler
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
- Production Goals: General Motors expects to increase its annual production in the U.S. to 2 million units in the coming years, aiming to surpass Ford and become the top assembler, thereby enhancing its market competitiveness and brand influence.
- Tariff Costs: The automaker anticipates tariff costs between $3 billion and $4 billion for 2025, which aligns with last year's $3.1 billion, but could rise due to tariffs on vehicles imported from South Korea, impacting profit margins.
- Production Line Adjustments: GM plans to shift gas-powered crossovers currently made in Mexico to plants in Kansas and Tennessee, while also ramping up production of full-size SUVs and pickups at an idled Michigan plant, reducing tariff impacts and increasing capacity.
- Trade Agreement Hopes: CEO Mary Barra expressed optimism about finalizing a new trade deal with South Korea to restore a 15% tariff level, which is crucial for supporting GM's 2026 production outlook and reducing reliance on imports.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
Current: 84.900
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Ongoing Technology Investments: GM is ramping up investments in electric vehicles and robotics to enhance manufacturing quality and reduce costs, with CEO Mary Barra stating that the company will continue to execute cost-reduction plans to ensure future profitability.
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