GM CFO Outlines Tariff Costs, Margin Rebound, and EV Reset at Conference

General Motors CFO Paul Jacobson discusses the automaker's strategy amid shifting policy, tariffs, and changing EV demand.

Published on Feb. 7, 2026

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General Motors CFO Paul Jacobson spoke at a conference, outlining how the automaker is managing a shifting policy backdrop, tariff costs, and changing electric vehicle (EV) demand. Jacobson said GM was "impacted pretty heavily by tariffs," citing over $3 billion in costs last year and $3-$4 billion expected this year. He also discussed efforts to restore North American profit margins to 8%-10% within the next 12-18 months. Jacobson highlighted GM's strength across product segments, from high-priced models to lower-priced vehicles, and efforts to reduce inventory and increase cash flow. On EVs, Jacobson described a "reset" as GM adjusts to lower-than-expected consumer adoption, with plans to improve EV profitability through technology changes.

Why it matters

GM's comments provide insight into how major automakers are navigating the complex policy, economic, and technological landscape, including the impact of tariffs, the push for higher profit margins, and the challenges of transitioning to electric vehicles. The company's strategies around inventory management, cash flow, and investment in software and services also offer a window into broader industry trends.

The details

Jacobson said GM was "impacted pretty heavily by tariffs," citing over $3 billion in costs last year and $3-$4 billion expected this year. He also discussed efforts to restore North American profit margins to 8%-10% within the next 12-18 months. Jacobson highlighted GM's strength across product segments, from high-priced models like the Cadillac Escalade to lower-priced vehicles, with the company selling over 700,000 vehicles priced under $30,000 last year. He described efforts to reduce inventory and increase cash flow, moving from generating about $3 billion in free cash flow to consistently running at $10 billion in recent years. On EVs, Jacobson said GM took $7 billion in charges in 2022 as it "reset" its EV strategy to align with lower-than-expected consumer adoption, with plans to improve EV profitability through technology changes.

  • In 2022, GM faced over $3 billion in tariff costs.
  • GM expects $3-$4 billion in tariff costs in 2023.
  • GM aims to restore North American profit margins to 8%-10% within the next 12-18 months.

The players

Paul Jacobson

Chief Financial Officer of General Motors.

General Motors

A global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services.

Mike Colias

Reuters U.S. Auto Editor who interviewed Jacobson at the conference.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

GM's comments highlight the complex challenges facing major automakers as they navigate shifting policy, economic, and technological landscapes. The company's strategies around inventory management, cash flow, and investment in software and services offer insights into broader industry trends, while its "reset" of its EV strategy underscores the ongoing challenges of transitioning to electric vehicles.