Post a Comment Print Share on Facebook

Detroit manufacturers cut business projections by Trump's tariff impact

General Motors and Fiat Chrysler begin to notice in their results an increase in the cost of steel and aluminum

- 10 reads.

Detroit manufacturers cut business projections by Trump's tariff impact

Pressure from rising metal costs begins to mark quarterly results of Detroit car manufacturers. General Motors calculates an impact of 1 billion dollars on its accounts, when increase in tariffs that apply to imports of steel and aluminum is added to effect of appreciation of US dollar.

GM recorded a net profit of 2.39 billion in second quarter, representing a 3% drop in year. But operating profit was reduced faster, 13%. It is explained because cost of raw material, including fuel boost, was 300 million higher than it was a year ago. The group's income remained very similar in 36.76 billion.

The results are in line with what was anticipated by Wall Street. But company's actions fell by 6.5% in opening of session because manufacturer cut projection of profit for whole year. It is what he also did his rival Fiat Chrysler, which saw how its stock valuation fell almost 10%. Steel and aluminum on essential materials in manufacturing.

"There are many pieces at this moment in motion," says GM executives, "that generates a high degree of uncertainty." Rising tariffs on two metals add to threats of President Donald Trump to tax car imports and anti in negotiations with Mexico and Canada for revision of North American Trade Agreement (NAFTA or NAFTA).

When you have people snipping at your heels during a negotiation, it will only take longer to make a deal, and deal will never be as good as it could have been with unity. Negotiations are going really well, be cool. The end result will be worth it!

— Donald J. Trump (@realDonaldTrump) July 25, 2018

The manufacturer of Detroit avoids saying what measures it envisages to adopt if commercial escalation does not cease. "If price hike continues", y point from Fiat Chrysler, "The impact will also be felt at 2019". Ford Motor will present results at end of market. The three companies are in talks with White House to try to redirect situation and limit major damage.

US manufacturers warn that tariffs will force m to raise prices and adjust ir templates to reduce costs. GM also cites effect of exchange rate on operations it has in Brazil and Argentina. On eve, motorcycle manufacturer Harley-Davidson and Whirpool appliances also anticipated ir margin will be affected by se surcharges.

GM acquires most of steel from domestic producers, which are also raising prices. Trump's strategy can lead, if any, that U.S. sales fall after three consecutive years over 17 million units. The president insists that good progress of economy allows him to confront imbalance that country suffers in international market.

Share in Facebook share on Twitter OtrosCerrarCompartir at LinkedinCompartir on GooglePlusCompartir on Pinterest more information
  • Trump comes to aid of farmers affected by tariff war
  • Trump gives Europe an ultimatum to lower tariffs on American cars

Warning!

You have to login for comment. If you are not a member? Register now.

Login Sign Up