President Trump announced on Wednesday’s cars and tariffs on automobile parts, the United States and the automobile manufacturers abroad will have extensive effects.
However, there will be significant differences based on the conditions of each company.
Tesla
Operated by Mr. Trump, Elon Musk, the company, the company makes the cars he sells in the United States in the factories in California and Texas. As a result, perhaps those who are at least exposed to tariffs.
However, according to the National Highway Traffic Safety Administration, the company buys parts from other countries – about one quarter of the components comes from abroad, depending on the value in their cars.
In addition, Tesla is fighting worldwide sales because the political activities and statements of Mr. Musk close moderate and liberal automobile buyers. Some countries can try to retaliate against Mr. Trump’s tariffs by targeting Tesla. A few Canadian states already He stopped offering incentives For the purchase of Tesla’s electric vehicles.
General motors
The largest US automobile manufacturer imports most of the most profitable cars and trucks from Mexico, where he has several large factories, especially those who rinse models such as Chevrolet Silverrado. Approximately 40 percent of GM’s sales in the United States last year were vehicles gathered abroad. This can make the company vulnerable to tariffs.
However, unlike some other car manufacturers, GM has published strong profits in recent years and is thought to be on good financial foundations by analysts. This can help to better ventilate tariffs than other companies, especially if import taxes are lifted or diluted by Mr. Trump.
Ford engine
Ford is much less dependent on imported cars than its competitors. It makes about 80 percent of the vehicles sold in the United States in the United States. As a result, it will be relatively insulated from 25 percent tariffs in imported vehicles.
However, the company is still dependent on foreign factories for large parts like engines. For example, a Ford factory in Ontario makes engines for some vans. Ford loses billions of dollars in electric vehicles. The Mustang Mach-e, one of the three battery-powered models, is produced in a factory near Mexico City.
Stellantis
The company, which owns Chrysler, Dodge, Jeep and Ram, uses overseas factories to bring together some popular models such as RAM van trucks in Mexico. Another model was made in Ontario, Chrysler Pacifica Minivan.
Fiat Chrysler and Stellantis, created with the combination of 2021 by Peugeot, is also struggling with stagnant sales and looking for a new chief manager. These challenges, especially if the tariffs remained in place for months or years, has taken more risks with others, such as Nissan.
Toyota
Like other Japanese automobile manufacturers, Toyota is very dependent on the United States and sold 2.3 million cars in the country last year. Approximately one million of these vehicles were built in other countries, many in Canada, Mexico and Japan. This may be a big problem for Toyota’s close company and automobile manufacturers such as Subaru and Mazda.
However, Toyota, the world’s largest car manufacturer, is better than other car manufacturers. It is profitable and is considered one of the best business companies in the global automobile industry by analysts.
Volkswagen
Europe’s largest car manufacturer can really be damaged by tariffs, because in the United States, Chattanooga has only one factory in Tenn. It imports many cars, including Audis and Volkswagens and Volkswagens from Mexico and Porsches from Germany.
The company has fought financially in recent years, because its sales fell sharply in China, where domestic car manufacturers grew rapidly by offering a large number of affordable electricity and hybrid vehicles. Volkswagen hoped to travel in the United States, but Mr. Trump’s latest tariffs can make this task even more difficult.
Hyundai and Kia
South Korean styles have gained impressive sales gains in the United States in recent years. Companies also invested in a new electric vehicle factory that started to increase production in Georgia and can help prevent tariffs in some models.
On Monday, Hyundai’s Chief Executive Officer Euisun Chung announced that his company will invest in the United States, including a new steel factory in Louisiana, at the White House with Mr. Trump. Although Hyundai and Kia now have three factories in Georgia and Alabama, they will not be able to avoid tariffs in hundreds of thousands of cars imported to the US. Most of these vehicles came from South Korea, which negotiated a trade agreement updated in 2007 in the first period of the United States and Mr. Trump.
