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

Jacobson discusses GM's strategy to manage shifting policy, tariffs, and changing EV demand while emphasizing financial discipline.

Published on Feb. 9, 2026

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General Motors CFO Paul Jacobson spoke at a conference, outlining how the automaker is navigating a shifting policy backdrop, tariff costs, and changing electric vehicle (EV) demand. Jacobson highlighted GM's efforts to restore North American profit margins, reduce inventory levels, and reset its EV strategy amid lower-than-expected consumer adoption.

Why it matters

GM's comments provide insight into the challenges and opportunities facing the automaker as it navigates a complex policy environment, evolving consumer preferences, and the transition to electric vehicles. The company's ability to manage these factors will be crucial to its long-term competitiveness and profitability.

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 added that GM is working to restore its North American profit margins to 8%-10%, about 12-18 months ahead of investor expectations. Jacobson highlighted GM's strength across its product portfolio, from high-priced models to lower-priced vehicles, and its efforts to reduce inventory levels and increase cash flow. On EVs, Jacobson said GM took $7 billion in charges to 'reset' its EV strategy as consumer adoption lagged regulatory expectations. He said GM is focused on reaching 'variable profitability at every vehicle level' and cited planned technical changes to reduce EV costs.

  • In 2025, GM expects repeated production forecast reductions for EVs.
  • GM plans to retool its Orion facility to produce internal combustion engine vehicles starting in 2027.

The players

Paul Jacobson

Chief Financial Officer of General Motors.

General Motors (GM)

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 automaker's efforts to navigate a complex policy environment, evolving consumer preferences, and the transition to electric vehicles. The company's ability to manage these factors, including restoring profit margins, reducing inventory, and resetting its EV strategy, will be crucial to its long-term competitiveness and profitability.