GM's C$1B+ Canadian investment boosts production visibility, but tariffs, rising costs and launch pressures cloud the near-term outlook.
General Motors workers in Canada on Sunday approved an agreement that would build a new heavy-duty truck in Ontario, as part of C$1.1 billion ($790.97 million) pledged for its plants in a country now reeling from U.S. tariffs.
The investment comes as Canada's auto sector grapples with 25% U.S. tariffs on vehicles, with President Trump pledging to double them to 50% on Jan. 1.
General Motors, PACCAR, Ford and Harley-Davidson have been highlighted in this Industry Outlook article.
General Motors is significantly undervalued, trading at a forward P/E of 8.2, 53.4% below the sector average. GM's pivot to personal vehicle autonomy and Super Cruise positions it for high-margin software revenue, with Super Cruise subscriptions growing rapidly. Software revenues, including OnStar and Super Cruise, are projected to reach $25 billion by 2030, potentially doubling GM's gross profit.
General Motors Company remains strategically attractive due to its dominant domestic lithium supply, robust ICE truck/SUV franchise, and aggressive shareholder returns. GM secured 100% of Thacker Pass mine's Phase 1 lithium output for 20 years, ensuring a battery-grade supply for up to 1 million EVs annually. Q2 2026 results outperformed with $48B revenue, $3.57 adjusted EPS, and $5B free cash flow; 2026 guidance was raised on strong execution.
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General Motors electric vehicles, including ones built in partnership with Honda, are now facing increased scrutiny from the top U.S. auto safety regulator after hundreds of incidents, more than 20 crashes or fires, and at least six injuries.
Canadian union Unifor said on Saturday it reached tentative agreements with General Motors on behalf of 4,600 members in Ontario.
Regulators say hundreds of owners have complained about engine problems despite an earlier recall.
The U.S. National Highway Traffic Safety Administration said on Friday it has opened a probe into 997,743 General Motors pickup trucks and SUVs over concerns related to engine failure.
General Motors (GM) reported earnings 30 days ago. What's next for the stock?