Since Donald Trump re-entered the White House, General Motors has been hard at work pivoting its business practices to capitalize on the policy changes he has ushered in by pouring billions into expanding U.S. production of GM’s biggest vehicles, rolling out new pickup trucks, high-dollar, gas-powered Cadillacs and military vehicles. Thus far, it has paid off in a big way.
The General has taken advantage of regulatory rollbacks pushed through by Trump that have allowed it to throw in the towel on its money-burning electric vehicle projects while also doubling down on money-making pickups and SUVs. At the same time, the automaker has been getting ready to finalize a deal worth more than $1 billion that’ll supply 10,000 trucks to the U.S. Army. It’s a far cry from where things once were between Trump and GM. From The Wall Street Journal:
Even Trump administration moves that initially boded poorly for GM—costly automotive tariffs and attacks on Iran that drove up gas prices and at first rattled its stock price—have left the automaker largely unscathed or hobbled its rivals more.
“We haven’t made excuses, we’ve just continued to perform,” GM Chief Executive Mary Barra said in a Tuesday call with analysts. GM shares are up more than 50% since Trump returned to office, with Wall Street’s enthusiasm over deregulation outweighing tariff fears.
Barra drew a barrage of presidential insults during Trump’s first term, angering him with workforce cuts and supporting California’s ability to set its own tailpipe standards. He attacked GM’s plans to invest heavily in EVs, said a move that would slash U.S. jobs was “nasty” and slammed the company for shutting a factory.
This time around, the bad blood has eased and the relationship has improved both through GM’s public positions as well as back-room bargaining. Barra, who meets directly with Trump and his top lieutenants, has been quick to get on board with his initiatives.
She praised tariffs last spring as a tool to level the playing field when the auto industry lobbied against them, and backed off plans to do away with gas-powered cars in favor of EVs within the next decade. GM still sells a lineup of EVs and is developing new ones but has shifted those plans due to weaker demand and regulatory changes.
GM, meanwhile, has spent more on federal lobbying this year than any single company.
Following Trump’s tariffs, GM said it would spend billions on expanding U.S. production on gas-powered trucks and SUVs. So far, it has paid off in a big way. Even though GM sold 4% fewer vehicles year-over-year in Q2 of 2026, its revenue was up 2%.
It has also been all-in on the administration’s push to get the automotive industry involved in weapons production.
The company has talked with Lockheed Martin about making parts for the defense contractor’s weapons and, last month, announced a general agreement between the companies to work together to bolster munitions production.
GM’s defense subsidiary is a leading contender to build a large infantry squad vehicle for the U.S. Army that would replace the Humvee. It also builds a lightweight infantry squad vehicle based on the Chevrolet Colorado pickup.
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Defense initiatives account for only a fraction of the automaker’s revenue and total production capacity, but they represent a growing business line. On Tuesday, Barra touted the division’s potential in more detail than she has on many previous calls; she said she expects $700 million in defense revenue this year, while producing double-digit margins.
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In addition to EV relief and defense work, GM scored a win with a Trump administration trade deal that kept tariffs low enough to allow the automaker to continue importing vehicles from South Korea.
Barra said GM’s upward trajectory is expected to continue in 2027 because of “multiple engines of margin expansion and growth.”
Listen, I’m not saying GM is going to get burned at some point, but just about every single entity that has made a deal with Trump has gotten burned at the end of the day; I hardly think GM will be the first to come out unscathed.
