General Motors (NYSE: GM) stock fell 0.94% to $72.76 on Friday as investors reacted to fresh political developments affecting North America’s auto industry. The move came after Canadian Conservative leader Pierre Poilievre announced plans to introduce a proposal aimed at ending U.S. tariffs on Canada’s auto sector — a development that could directly impact major automakers including General Motors, Ford, and Stellantis.
The proposal, expected to be presented over the weekend, would align Canadian and U.S. automotive regulations and remove the Goods and Services Tax (GST) from Canadian-made vehicles. Poilievre described the plan as “literally the only hope of keeping our auto sector in Canada.” The political push has added new uncertainty for investors already monitoring trade policies and cross-border supply chains in the auto industry.
Canada–U.S. auto trade talks return to focus
The North American auto industry operates through an integrated supply chain where vehicles and components frequently cross the U.S.–Canada border multiple times during production. Tariffs on vehicles or auto parts can therefore increase costs across the entire system.
Poilievre said he intends to present the proposal to Canadian Prime Minister Mark Carney and will discuss it with U.S. political leaders and auto executives. The Canadian leader traveled to Windsor, Ontario — a key automotive manufacturing hub — and plans to visit Detroit to meet with executives and lawmakers from Michigan and Ohio.
According to the report, Poilievre has scheduled meetings with representatives from Ford Motor Company and General Motors, though he was unable to secure a meeting with Stellantis. The outcome of these discussions could influence the direction of future North American auto trade negotiations.
GM’s strong cash flow continues to support growth
While the political developments triggered short-term stock movement, General Motors’ underlying financial performance remains strong. Over the past five years, the company has significantly improved its cash generation. GM’s average annual free cash flow increased from roughly $3 billion to about $10 billion.
The automaker generated nearly $25 billion in free cash flow over the past two years alone. This strong cash generation has allowed the company to invest heavily in manufacturing, product development, and technology while still returning capital to shareholders.
GM has used this cash to support several strategic priorities, including strengthening its balance sheet, investing in workforce and manufacturing expansion, and increasing shareholder returns. The company recently raised its quarterly dividend by 20% and plans to pursue additional share repurchases.
Billions being invested into manufacturing expansion
General Motors is also continuing to invest aggressively in its future production capabilities. Over the past two years, the company invested more than $20 billion in capital projects to support its core operations and strategic growth initiatives.
Looking ahead, GM expects to maintain that momentum. The company plans to invest between $10 billion and $12 billion annually through 2026 and 2027. Roughly $5 billion of that spending will go toward expanding U.S. manufacturing capacity for some of its highest-demand vehicles.
The strategy is designed not only to increase production but also to reduce exposure to tariffs and supply chain disruptions. Expanding domestic manufacturing allows the company to protect margins and maintain greater control over its production network.
Product strategy drives market share gains
General Motors’ improving product lineup has also helped the company gain market share. In 2025, GM increased its market share by 60 basis points while maintaining some of the lowest incentive levels in the automotive industry.
This disciplined approach has helped GM maintain profitability while strengthening its competitive position. The company has increasingly focused on higher-margin vehicles such as trucks and SUVs while managing its electric vehicle investments more cautiously.
Analysts believe this product mix strategy could significantly improve GM’s earnings growth and margins over the coming years.
Ford and Rivian taking different financial paths
Other automakers are managing their finances differently. Ford Motor Company generated $3.5 billion in free cash flow and ended 2025 with nearly $29 billion in cash and about $50 billion in total liquidity.
Ford plans to use this financial flexibility to invest in growth opportunities including Ford Energy as well as software and digital services. The company expects adjusted free cash flow of $5 billion to $6 billion in 2026, roughly $2 billion higher than the previous year.
Meanwhile, electric vehicle startup Rivian Automotive is still in heavy investment mode. The company’s cash balance declined to $3.5 billion at the end of 2025 from $5.3 billion the previous year as it continued to fund expansion.
Rivian plans to spend between $1.95 billion and $2.05 billion in capital expenditures to complete construction of its R2 production line and continue development of its Georgia manufacturing facility.
Analysts remain bullish on GM stock
Despite Friday’s decline, analysts remain optimistic about General Motors’ long-term outlook. Wall Street consensus estimates suggest a price target near $100, implying roughly 34% upside from current levels.
Bank of America recently initiated coverage of the stock with a “Buy” rating and a $105 price target. The firm cited GM’s position as the leading automaker by U.S. market share and its strong truck and SUV portfolio.
The analyst also highlighted the company’s shift away from lower-margin electric vehicle categories toward higher-margin vehicles, which could support stronger earnings growth in the coming years.
GM shares have already delivered strong performance over the past year, rising more than 55%. However, analysts believe the stock could continue to climb if the company maintains strong cash flow, expands production, and navigates the evolving regulatory landscape.
External sources: General Motors and Zacks Investment Research
Make Swikblog your go-to source on Google for reliable updates, smart insights, and daily trends.
