The customs duties on cars and car parts announced by President Trump on Wednesday will have far -reaching effects on auto companies in the United States and abroad.
But there will be important differences based on the conditions of each company.
Timing
The company run by Mr. Trump, Elon Musk, manufactures the cars it sells in the United States in California and Texas factories. As a result, it may be less exposed to definitions.
But the company buys spare parts from other countries A quarter of the ingredients at value In its cars comes from abroad, according to the National Road Traffic Safety Administration.
In addition, Tesla is struggling with decreased sales around the world, partly due to the fact that the political activities of Mr. Musk have stopped moderate and liberal car buyers. Some countries can seek revenge on Mr. Trump’s tariff by targeting Tesla. Some Canadian provinces already Stop offering incentives To buy Tesla electric cars.
General Motors
The largest American auto industry company It imports many best and most profitable cars and trucksAnd especially from Mexico, where there are many large factories that come out models such as Chevrolet Silvrado. Nearly 40 percent of General Motors sales in the United States last year were compiled vehicles abroad. This can make the company vulnerable to tariffs.
But unlike some other car manufacturers, General Motors recorded strong profits in recent years and analysts considered them on a good financial basis. This can help to overcome the definitions better than other companies, especially if import taxes are removed or diluted by Mr. Trump.
Ford Motor
Ford is A lot less dependent on imported cars Of many competitors. It makes about 80 percent of the vehicles it sells in the United States in the country. As a result, it will be relatively isolated from the 25 percent definitions on imported vehicles.
But the company still depends on foreign factories for the main parts such as engines. Ford Factory in Ontario, for example, makes engines for some captured trucks. Ford has lost billions of dollars on electric cars. One of its three battery-made models, Mustang Mach-E, is produced in a factory near Mexico City.
Stelantis
The company that owns Chrysler, Dodge, Jeep and RAM, uses external factories, in Mexico in particular, to Assembling some common models such as pickup trucks. Another model, Chrysler Passevica Mini Van, made in Ontario.
Stelantis, which was created by the 2021 inclusion process for FIAT Chryler and Peugeot, is also struggling with slow sales and looking for the new CEO. These challenges put the company, along with others, such as Nissan, in a greater danger, especially if the customs tariff remains in place for several months or years.
Toyota
Like other Japanese auto companies, Toyota depends greatly on the United States 2.3 million cars in the country last year. About a million of these vehicles were made in other countries, many of which are in Canada, Mexico and Japan. This may be a major problem for the company and auto industries such as Subaru and Mazda, which is working closely.
But Toyota, the world’s largest auto industry company, is in a better position than other auto manufacturers. It is profitable and analysts are considered one of the best companies in the global auto industry.
Volkswagen
The largest automobile company in Europe can be harmed due to the customs tariff because it contains only one factory in the United States, in Catanoja, Tin, where it makes atlas and sports facilities. It imports many of its carsIncluding Audis and Volkswagens from Mexico and Porsche from Germany.
The company has fought financially In recent years, its sales decreased sharply in China, as local auto manufacturers have grown rapidly by introducing many electric and hybrid vehicles at reasonable prices. Volkswagen was hoping to achieve roads in the United States, but Mr. Trump’s latest tariff could make this difficult task more difficult.
Hyundai and Kia
South Korea colleagues have made great sales gains in the United States in recent years. Companies have also invested in a new electric cars factory in Georgia that have begun to increase production, which may help them avoid tariffs in some models.
On Monday, CEO of Hyundai, Euisun Chung, He announced in the White House with Mr. Trump His company will invest another $ 21 billion in the United States, including a new steel factory in Louisiana. Although Hyundai and Kia now have three factories in Georgia and Alabama, they will not be able to avoid customs tariffs on hundreds of thousands of cars they import to the United States. Many of these vehicles came from South Korea, which negotiated a trade agreement with the United States in 2007 It was updated during the first term of Mr. Trump.
