GM Sticks To Cadillac F1 Launch Despite $5B Tariff Hit: Retail Stays Extremely Bullish
Synopsis
The automaker has lowered its full-year profit forecast but remains optimistic about offsetting some tariff impacts and maintaining its manufacturing investments.
General Motors (GM) said its Formula One ambitions remain intact despite a potential $5 billion blow from new U.S. automotive tariffs and recent operational cuts in Canada, with Cadillac still on track to join the F1 grid in 2026.
GM President Mark Reuss told reporters at the Miami Grand Prix that the company’s F1 program would proceed as planned.
“There’s about $5 billion of impact for us,” Reuss said, referring to tariffs announced by former President Donald Trump. “But it’s not going to affect this project.”
The automaker last week cut its 2025 profit forecast, citing the tariff burden.
GM now expects full-year net income of $8.2 billion to $10.1 billion, down from $11.2 billion to $12.5 billion previously.
Adjusted automotive free cash flow was also lowered to a range of $7.5 billion to $10 billion.
Separately, GM said it will reduce operations at its Oshawa Assembly Plant in Ontario, Canada, moving to two shifts from three.
The change, expected to impact around 700 workers, follows what GM described as shifting trade dynamics and forecasted demand.
Canadian labor union Unifor criticized the move as premature and harmful. “We will not allow GM to barter Canadian jobs to gain Donald Trump’s favour,” said Unifor National President Lana Payne, who urged the automaker to reverse course.
GM said it expects to offset at least 30% of the tariff impact while continuing to invest in its U.S. manufacturing network, which includes 11 vehicle assembly plants in 19 states.
Cadillac’s F1 program will use Ferrari engines initially, with GM planning to introduce its own power units from 2029.
The project currently employs about 350 people, with expectations to scale up to 1,000.
On Stocktwits, sentiment was described as "extremely bullish" with "high" message volume.
Shares of General Motors have fallen 11.8% so far this year.
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