“We anticipate a benefit of one to $1.5 billion related to the actions we've taken to rightsize our EV capacity.”

In context

“Q4 twenty-five is largely driven by the timing of tariff costs, which can be lumpy particularly as it relates to the supply chain. The team did a great job offsetting over 40% of our gross tariff costs in 2025 through go-to-market strategies, footprint changes, and cost efficiencies. As we look ahead to 2026, we expect these cost savings to be sustained and believe there are additional actions that can help mitigate our tariff impact. For the industry, we expect total US SAR to be in the low 16 million unit range for the year. We expect North America ICE wholesale volumes to be flat to up modestly. ICE volumes this year are constrained due to portfolio shifts. Including the ending of the Cadillac XT6, and some expected downtime ahead of the new Chevrolet Silverado and GMC Sierra launches. We anticipate a benefit of one to $1.5 billion related to the actions we've taken to rightsize our EV capacity. The benefits from both EV-related charges and substantially lower EV wholesale volumes will positively impact both mix and cost. We also expect that the temporary downtime at our Altium Cells joint venture will result in lower production tax credits, but this impact should be largely offset by positive inventory adjustments from lower cell inventory levels. Lower production tax credits in 2026 should then represent a tailwind in 2027 as we resume normalized production. We expect North America pricing to be flat to up 0.5% as we realize the full-year benefit of model year 2026 price increases. While this includes a placeholder for potentially higher incentives due to the competitive environment, we are confident in our ability to maintain pricing discipline. While some uncertainties remain”