GM’s Barra on Demand Weakness: ‘We’re Just Not Seeing It’
General Motors Corp. Chair and CEO Mary Barra on July 21 told investors that buyers aren’t adjusting their preferences because of energy costs or broader affordability concerns and added that consumers’ persistence is a big reason the auto giant’s executives think sales and profits will grow in 2027.
“It’s just not happening. We’re seeing really strong full-size truck demand and full-size utility, for that matter,” Barra responded to a question about affordability worries on a conference call discussing GM’s second-quarter results. “We’re just not seeing it. I think something would have to happen for a long period of time before people would make potentially a different decision. We’re seeing strength.”
GM booked net profits of $1.3 billion on revenues of about $48 billion in the three months that ended June 30. Net income was down about 30% from the same period of 2025 due mainly to charges related to the company scaling back its electric-vehicle operations but adjusted earnings before interest rose 30% year over year to more than $3.9 billion.
The company sold 1.43 million vehicles during the quarter, down from 1.54 million in last year’s Q2, which trimmed its worldwide market share to 6.4% from 6.7%. CFO Paul Jacobson told analysts the drop was due to the decisions to stop making the Chevrolet Malibu and Cadillac XT4, along with a few other models, as well as a drop in EV sales and tight dealer inventories early this year.
Some of those levers have led Barra and Jacobson to raise their 2026 forecasts for adjusted EBIT and adjusted free cash flow from operations by $500 million. Also helping on that front—and another sign that the GM team thinks consumers remain in solid shape—is a tick up in pricing expectations in North America: Previously, executives had forecast an increase of between 0% and 0.5%; they now are saying the rise from 2025 will be about 0.5%.
Shares of GM (Ticker: GM) rose nicely on the earnings report and call commentary: Heading into the lunch window, they were up 4% to about $78.80. The shares of most other automakers and large suppliers also moved up, although typically not as much. Year to date, GM stock is down slightly and the company’s market capitalization is now about $71 billion.
About the Author
Geert De Lombaerde
Senior Editor
A native of Belgium, Geert De Lombaerde has been in business journalism since the mid-1990s and writes about public companies, markets and economic trends for Endeavor Business Media publications, focusing on IndustryWeek, FleetOwner, Oil & Gas Journal, T&D World and Healthcare Innovation. He also curates the twice-monthly Market Moves Strategy newsletter that showcases Endeavor stories on strategy, leadership and investment and contributes to other Market Moves newsletters.
With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati in 1997, initially covering retail and the courts before shifting to banking, insurance and investing. He later was managing editor and editor of the Nashville Business Journal before being named editor of the Nashville Post in early 2008. He led a team that helped grow the Post's online traffic more than fivefold before joining Endeavor in September 2021.