Winter is Coming for GM? Tariffs Threaten the Iron Throne of Auto Sales!

A Storm of Tariffs is Brewing

My loyal subjects your Khaleesi brings news from a land far far away – a place called Detroit. It appears a new kind of dragon has emerged one forged not of fire and blood but of trade wars and tariffs! This 'Donald Trump,' a leader of great… shall we say 'unpredictability,' has imposed tariffs that threaten to disrupt the realm of General Motors (GM). It seems these tariffs like the whispers of Littlefinger are causing quite a stir among the Wall Street analysts. And we know how much they love to gossip! This auto industry is experiencing what is like a new long night but hopefully it will not last as long as the great war.

Wall Street's Downgrade: Is GM Facing a Red Wedding?

Wall Street analysts those ravens of economic fortune have been downgrading GM stock faster than you can say 'Dracarys!' The uncertainty surrounding these tariffs has them spooked. It reminds me of the Red Wedding only instead of bloodshed it's about balance sheets and profit margins. Poor GM it seems they are now going through their own version of the long night. This is not looking good let us hope they have some wild fire in their back pockets!

The Unburnt (by Q1): A Temporary Reprieve?

But fear not dear readers! Like a Targaryen rising from the ashes GM might just weather this storm. It appears that consumers in their infinite wisdom (or perhaps just a fear of higher prices) rushed to purchase vehicles ahead of the tariff hikes. Analysts are predicting that GM might actually beat first quarter estimates! A temporary victory perhaps but a victory nonetheless. It seems not all hope is lost as long as GM continues to play the game of thrones and the games tariffs.

By The Numbers: A Game of Revenue and Earnings

Now let's delve into the numbers shall we? It seems Wall Street expects GM to report earnings per share of $2.74 and revenue of $43.05 billion. Such numbers are as impressive as my dragon's wingspan. The revenue increases a tiny bit at 0.1% whilst the earnings per share increases 4.6%. These numbers would make even the most hardened Dothraki warrior take note.

Mitigation Maneuvers: Can GM Bend the Knee?

GM's CEO Mary Barra has stated that the company believes it can mitigate up to 50% of these tariffs. A bold claim! But can she truly tame these trade dragons? The current tariffs include Canada Mexico and South Korea a diverse group of allies and trade partners. If you ask me it is as complicated as my family tree. I hope that the CEO can mitigate these issues as that it does not seem that the tariffs are going away anytime soon.

The 2025 Prophecy: A Glimmer of Hope or a Fool's Dream?

All eyes are on GM's 2025 guidance. The company projects net income of $11.2 billion to $12.5 billion and adjusted automotive free cash flow between $11 billion and $13 billion. Are these realistic goals or simply wishful thinking? Only time will tell if GM can truly conquer this tariff laden landscape and claim the Iron Throne of the automotive industry. I wonder if I could get a custom dragon on one of these vehicles...