General Motors expects North America EBIT margins to reach the 8-10% range by 2026.
The company attributes this rebound to a strategic reset of electric vehicle investment plans, which significantly reduced EV operational losses.
A projected $1 billion year-over-year reduction in warranty expenses will further support the margin expansion.
GM anticipates an additional $500 million to $750 million in savings from lower regulatory compliance costs.
CFO Paul Jacobson stated the company is working to mitigate $3 billion to $4 billion in tariff impacts through onshoring investments and other measures.