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Will General Motors’s (GM) EV Restructuring Headwinds Ease Before Commodity Inflation Compounds?

General Motors Company delivered a strong first quarter, supported by disciplined pricing, lean inventories, improved EV losses, warranty savings, China profitability, and growing digital services revenue. Total company EBIT-adjusted reached $4.3 billion, helped partly by a $0.5 billion tariff-related accounting benefit, while North America posted a 10.1% EBIT-adjusted margin, or 8.6% excluding that benefit. This keeps the company on track toward its 8% to 10% North American margin objective for the full year. The result also reflected continued strength in full-size pickups, where General Motors Company maintained 42% U.S. market share, along with leadership in fleet and commercial deliveries. However, revenue declined by about $400 million year-over-year, mainly because of lower EV wholesale volumes, and North American ICE wholesales were constrained by lower inventory, planned downtime for next-generation full-size pickup tooling, lower imported volumes from Korea, and the end of production for certain Cadillac crossovers.