Since Donald Trump re-entered the White House, General Motors has worked hard to shift its business practices to capitalize on the policy changes by spending billions of dollars increasing U.S. production of GM’s biggest vehicles, introducing new pickup trucks, high-end, gas-powered Cadillacs and military vehicles. So far, it has paid off massively.
The General has taken advantage of the regulatory rollbacks implemented by Trump that have allowed it to rein in money-making electric vehicle projects while also doubling down on money-making pickups and SUVs. Also, the automaker is getting ready to finalize a deal worth more than $1 billion that will supply 10,000 trucks to the US military. This is a far cry from where things once were between Trump and GM. From wall street journal: :
Even moves by the Trump administration that initially boded poorly for GM — costly automotive tariffs and strikes on Iran, which raised gas prices and sent its stock price tumbling in the first place — have left the automaker largely unaffected or further unsettling its rivals.
“We’ve made no excuses, we’ve just continued to perform,” GM Chief Executive Mary Barra said in a call with analysts Tuesday. GM shares have risen more than 50% since Trump returned to office, as Wall Street enthusiasm outweighs tariff fears.
Barra unleashed a barrage of presidential insults during Trump’s first term, angering him over workforce cuts and supporting California’s ability to set its own tailpipe standards. He attacked GM’s plan to invest heavily in EVs, saying the move was “bad” for cutting U.S. jobs and criticizing the company for closing a factory.
This time, the friction has subsided and the relationship has improved, both through the GM’s public positions as well as back-room bargaining. Barra, who meets directly with Trump and his top lieutenants, became immediately involved in his initiative.
He praised tariffs as a tool to level the playing field last spring, when the auto industry lobbied against them, and supported a plan to phase out gas-powered cars in favor of EVs within the next decade. GM still sells a range of EVs and is developing new ones but has shifted those plans due to weak demand and regulatory changes.
Meanwhile, GM has spent more on federal lobbying this year than any single company.
After Trump’s tariffs, GM said it would spend billions of dollars to increase U.S. production on gas-powered trucks and SUVs. So far, it has paid off massively. Even though GM sold 4% fewer vehicles year-over-year in the second quarter of 2026, its revenue grew 2%.
The administration is also making full efforts to involve the automotive industry in arms 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 increase 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 produces a light infantry squad vehicle based on the Chevrolet Colorado pickup.
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Defense initiatives are only a fraction of the automaker’s revenue and total production capacity, but they represent a growing business line. On Tuesday, Barra went into more detail about the potential for division than in many previous calls; He said he expects $700 million in defense revenue this year, while margins will be in double digits.
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In addition to the EV relief and defense actions, GM won a Trump administration trade deal that kept tariffs low enough that the automaker could continue importing vehicles from South Korea.
Barra said GM’s upward trajectory is expected to continue in 2027 due to “margin expansion and multiple engines of growth.”
Listen, I’m not saying GM will burn down at some point, but every single entity that deals with Trump will burn down at the end of the day; I don’t think the GM will be the first to come clean.
