Podcast Summary: Bloomberg Talks — GM CFO Talks Tariffs, Supply Chain Changes
Date: October 21, 2025
Host: Jonathan Ferro (Bloomberg)
Guest: Paul Jacobson (CFO of General Motors)
Overview
This episode features a timely and candid conversation with Paul Jacobson, CFO of General Motors, in the wake of GM's strong earnings report and increased financial guidance. The discussion centers on how GM has navigated industry volatility, particularly supply chain challenges, shifting trade policies, EV market uncertainty, and the competitive landscape in China. Jacobson highlights GM’s strategic adaptability, cost management, and ongoing dialogue with policymakers to mitigate tariff impacts.
Key Discussion Points & Insights
1. Navigating Volatility & Building Resilience
(00:23–01:43)
- Jacobson reflects on leading GM through multiple crises: COVID-19, chip shortages, tariffs, and EV market pivots.
- The focus has been on creating a resilient operational model with disciplined inventory practices and agile market responses.
Notable Quote:
"Since coming to GM in 2020, we've gone through COVID, we've gone through chip shortage, we've gone through tariffs, we've gone through EV pivots and so on. But what we've really tried to do is create a model that is resilient."
— Paul Jacobson (00:57)
2. Balancing Agility With Long-Term Vision
(01:43–02:29)
- Despite short-term market adjustments (e.g., reducing EV capacity), GM maintains its commitment to EVs as the industry's future.
- The strategy involves right-sizing capacity now to ensure future success as customer adoption grows.
Notable Quote:
"We still believe that EVs are the future. And we think that there's an opportunity for us to take a little bit of a pause in demand growth...right-size our capacity and make sure that we can be successful as more and more customers adopt it."
— Paul Jacobson (01:52)
3. Supply Chain Diversification and US Investment
(02:29–03:38)
- COVID revealed supply chain vulnerabilities, prompting diversification, especially away from over-dependence on China.
- GM has made significant investments in U.S. battery materials and manufacturing, including a $4 billion boost to US manufacturing capacity.
- Lessons from the chip crisis led to further expansion of chip sourcing and supplier base.
Notable Quote:
"We've made a number of investments, for example, in battery raw materials and other material U.S. in addition to the $4 billion that we've announced this year to increase our U.S. manufacturing capacity."
— Paul Jacobson (02:44)
4. Funding Supply Chain Overhauls & Inventory Discipline
(03:38–04:49)
- GM’s cost savings have come largely from reduced inventory levels, freeing up working capital for reinvestment.
- Lower inventory enables quicker adaptation to changes in demand and helps stabilize pricing, while supporting sustained shareholder returns and debt reductions.
Notable Quote:
"We've saved a lot of money by rationalizing our inventory balances...we've cut that down. That frees up a lot of working capital to be able to invest and redeploy back into the business."
— Paul Jacobson (03:59)
5. Tariffs: Industry Relief, Policy Engagement & Future Expectations
(04:49–06:43)
- Recent U.S. administrative actions have provided relief on tariffs, expanding MSRP offsets and resulting in a $500 million reduction in GM’s annual tariff forecast.
- Jacobson credits proactive government dialogue for helping GM remain competitive, anticipate policies, and increase domestic investment.
- He anticipates further negotiation-driven stability, especially with pending deals with Korea, Mexico, and Canada, potentially enabling a return to targeted profit margins.
Notable Quotes:
"The announcements that were made Friday ... expand ... to be able to use those MSRP offsets on a wider variety of parts that we're bringing into the country. And as a result ... we were able to lower our total tariff forecast for the year by about half a billion dollars from where we started."
— Paul Jacobson (05:05)
"As we look at those deals being finalized and we start to look into 2026, we think that there's actually an opportunity for us to do better in 2026 than we've done in 2025."
— Paul Jacobson (06:00)
6. Competing—and Surviving—in the Chinese Market
(06:43–07:44)
- GM undertook a major China business restructuring, accepting a reduced market presence in the face of intense competition.
- Despite scaling back, GM’s China operations have remained profitable each quarter in 2025.
Notable Quote:
"We were probably not going to be as big in China as we have been historically...But you know, together with our partners we were able to restructure that business and we've been profitable every quarter this year and look to be able to sustain that."
— Paul Jacobson (07:01)
Memorable Moments & Quotes
-
On Resilience:
"What we've really tried to do is create a model that is resilient."
— Paul Jacobson (00:57) -
On Long-Term Planning:
"It's just an example of how we make sure that we're managing the short term within the face of that longer term vision."
— Paul Jacobson (02:29) -
On Industry-Government Collaboration:
"I want to praise the administration for really listening to the concerns of the industry..."
— Paul Jacobson (05:05) -
On GM's Future:
"We think that there's actually an opportunity for us to do better in 2026 than we've done in 2025 and start to work our way back up to those 8 to 10% targeted margins."
— Paul Jacobson (06:00)
Key Timestamps
- 00:23 — Introduction to GM’s earnings and industry volatility
- 00:57 — Jacobson’s reflection on navigating crises at GM
- 01:52 — GM’s approach to balancing agility and long-term EV strategy
- 02:44 — Supply chain changes and US manufacturing investments
- 03:59 — Inventory management and capital efficiency
- 05:05 — Tariff policy updates and industry-government partnership
- 06:00 — Future trade negotiations with Korea, Mexico, Canada
- 07:01 — Restructuring and profitability in China
Conclusion
Paul Jacobson provides a transparent, optimistic view of GM’s strategies for managing a rapidly changing global automotive landscape. Through prudent financial management, targeted investments, and proactive engagement with policymakers, GM positions itself as both agile and forward-looking. The episode offers valuable insights into the interplay between global trade, supply chain resilience, and the evolving auto industry, straight from the C-suite.