GM Seeks Alignment with Trump’s Administration
General Motors (GM) is making concerted efforts to gain favor with President Donald Trump’s administration, hoping that some of its initiatives—particularly regarding electric vehicles (EVs)—won’t conflict with the president’s policies.
When Trump first proposed tariffs on imported cars, GM’s CEO Mary Barra seemed to show support. This comes even as the company has been importing millions of foreign-made vehicles over the years.
According to a report by Bloomberg, GM imported more cars to the US than any other automaker last year, surpassing even Japan’s Toyota. It was noted that nearly half of GM’s sales in the US—about 1.23 million vehicles—originated from overseas production. Many of these were some of the more affordable models, including the Chevrolet Trax and Buick Envista SUVs.
GM has also established itself as Mexico’s largest automaker, producing close to 890,000 vehicles in 2024, marking a 23% increase from the previous year.
“We are enhancing our manufacturing capabilities in the US, making adjustments to reduce tariffs,” Barra mentioned during a recent conference. She highlighted the existing capacity of assembly and engine plants in the country, indicating a commitment to utilizing these resources.
Sources within GM noted that the company supports some of Trump’s tariffs, stressing the desire for fairer trade terms for US manufacturing and exports.
Over recent months, GM’s lobbying efforts have intensified, particularly among Republican lawmakers. They are trying to include Biden’s EV consumer tax subsidies within Trump’s spending package, which is being referred to as the “big, beautiful bill.”
Biden’s EV tax credit aimed to boost sales but has struggled, costing taxpayers significantly. Despite this, Barra remains optimistic about GM’s EV future, pledging that the company will be fully electric by 2035.
This optimism is part of the reason GM recently allocated over $8 million for lobbying, a significant increase from just $3.5 million at the end of 2024. Typically, GM spends around $2.67 million per quarter on lobbying, making this recent surge noteworthy.
Additionally, GM’s sources indicated that if Congress and Trump decide to terminate Biden’s EV tax subsidies, emissions standards might also need to be adjusted. Trump’s administration has aimed to roll back California’s emissions regulations that restrict gas-powered vehicle sales.
After Trump’s electoral victory in November 2024, Barra expressed gratitude for Trump’s support of American automakers, stating that both sides had engaged in ongoing discussions even before he took office.
During the presidential campaign, it was reported how GM, along with other automakers, was actively lobbying Trump regarding the preservation of Biden’s EV mandate, a regulation that promotes EV sales while regulating gas vehicles.
Despite pressures from automakers, Trump has maintained his stance, directing the Environmental Protection Agency (EPA) to begin reversing Biden’s policies.
GM has been promoting a recent $4 billion investment aimed at boosting production of both gas-powered and electric vehicles in the US, focusing primarily on plants in Michigan, Kansas, and Tennessee.
Interestingly, these are the same facilities where GM announced a $1 billion investment in 2023, part of a deal with the United Autoworkers (UAW).
In his first term, Trump faced criticism for closing plants in states like Ohio and Michigan, impacting thousands of auto workers. However, it seems GM is looking to navigate its past relationship with Trump more carefully this time.
“There are aspects GM could handle more effectively,” Barra remarked in a recent meeting, hinting at the need for restructuring and improvement within the company.
