Episode summary
GM Boosts 2026 Outlook on Premium Pricing for Big Trucks | Bloomberg Intelligence
Bloomberg Intelligence
· · 18 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: David Welch, Chris Palmeri, Scott Rechler
Summary
General Motors raised its full-year profit outlook after another earnings beat, with the guest saying the automaker is benefiting from premium pricing on big trucks and SUVs, lower tariff costs, and lower warranty expenses. He said GM’s average vehicle now sells for about $52,000, but also warned that some pickup-truck discounting is still appearing and that the company must prove its production and inventory gains are sustainable into 2026 and 2027. The guest also said GM is still taking charges tied to reduced EV production and retooling, while hybrids remain a much smaller part of its lineup than they are for rivals.
The conversation then turned to Paramount Skydance’s bid for Warner Bros. Discovery, where a federal judge temporarily paused the deal after states argued it may violate antitrust law. The analyst said the delay could push the transaction into next year and added that Paramount faces a $7 million-a-day ticking fee if it misses the closing deadline, on top of a prior $2.8 billion payment to Netflix.
Scott Rechler argued that New York City’s office market is stronger than it has been in decades, with tight vacancy in top buildings, robust leasing, and a landlord’s market forming in prime locations. He said office-to-residential conversion remains important public policy, while AI is amplifying demand for New York’s financial and creative ecosystem rather than pulling it away.
Key takeaways
- GM’s raised 2026 outlook is being driven by premium pricing on big trucks, tariff relief, and lower warranty costs, according to the guest.
- The guest said GM’s average vehicle sells for about $52,000, but pickup-truck discounting is still present in a competitive segment.
- On EVs, the guest said GM is taking charges tied to reduced production and retooling, while hybrids remain a much smaller focus than rivals like Toyota and Honda.
- The analyst said a court delay could push the Paramount Skydance-Warner Bros. Discovery deal into next year and trigger a $7 million-a-day ticking fee.
- Scott Rechler said New York office leasing is back to levels not seen since 2000, with only about 3% vacancy in top buildings.
Notable quotes
“they boost their 2026 outlook due to premium pricing on big trucks. Boy, that is America auto industry today”
“GM's average vehicle is selling for $52,000 uh and and you know that's an expensive vehicle”
“what you're seeing are these charges coming through the system. And GM is has taken a total of 11 billion in charges there”
“right now they can't close the deal until August 3rd”
“I have not seen the New York office market as strong as it is today”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App.
Listen on demand wherever you get your podcasts or watch us live on YouTube. David Welsh. He is our Bloomberg Detroit bureau chief.
And we'll talk about General Motors' earnings, but I was checking out Canada's exports to the US and energy is number one on the list. 160 billion Canadian dollars worth of exports to the US in 2025. Number two is motor vehicles and parts at 74 billion Canadian dollars.
Um, what's the thinking in Detroit when the president threatens tariffs on Canadian products? You know, generally speaking, in in Detroit, the the car companies worry about this because they've got long-standing manufacturing there. A lot of big Canadian parts suppliers, too.
Magnet is big. Martin Ray is another one that's a goodiz company. Uh they send a lot of parts over the border very quietly.
Toyota makes a lot of vehicles in Ontario. And Ford and General Motors still have production over there. So does Stalantis.
So look, the car companies don't like anything that really is going to upset their supply chains any more than it already has. Mexico has already been a big deal for them uh and certain parts of Asia as well. So they they'd rather see the status quo remain in place and and and hope it does here.
In fact, the car companies generally want to see USMCA remain as is similar to what it's been since uh Trump set it up uh what five, six years ago uh to begin with. But you know that that's not going to be the case. But they have been fighting to sort of claw back some exemptions to that and and reduce their cost.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- gm earnings outlook
- premium truck pricing
- antitrust deal delay
- commercial real estate market
- nyc office market
Companies and tickers mentioned
- GM
- General Motors
- Warner Bros. Discovery
- RXR
- Paramount Skydance Corp.
Watch the episode
Watch “GM Boosts 2026 Outlook on Premium Pricing for Big Trucks | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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