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Trump Auto Rates: How large car stores would be affected

    The rates for cars and car parts that President Trump announced on Wednesday will have far-reaching consequences for car manufacturers in the United States and abroad.

    But there will be important differences based on the circumstances of each company.

    The company run by Mr Trump's confidant, Elon Musk, makes the cars it sells in the United States in factories in California and Texas. As a result, it may be the least exposed to rates.

    But the company buys parts from other countries – about a quarter of the components per value in his cars come from abroad, according to the National Highway Traffic Safety Administration.

    Moreover, Tesla is struggling with the falling sale around the world, partly because the political activities and statements of Mr. Musk have eliminated moderate and liberal car buyers. Some countries could try to take revenge on Mr Trump's rates by focusing on Tesla. Some Canadian provinces have already stopped offering stimuli for purchasing the electric vehicles from Tesla.

    The largest American car maker imports a lot of the best -selling and most profitable cars and trucks, especially from Mexico, where it has several large factories that turn models such as the Chevrolet Silverado. About 40 percent of GM's turnover in the United States last year were vehicles that were assembled abroad. This can make the company vulnerable for the rates.

    But unlike some other car manufacturers, GM has made strong profit in recent years and analysts are considered a good financial basis. That can help you to pass the rates better than other companies, especially if the import tax is removed or diluted by Mr Trump.

    Ford is much less dependent on imported cars than many of its rivals. It makes around 80 percent of the vehicles it sells in the United States in the country. As a result, it would be relatively insulated of the 25 percent rates for imported vehicles.

    But the company is still dependent on foreign factories for large parts such as engines. For example, a Ford factory in Ontario makes motorbikes for some of his Pick -Up Trucks. Ford has lost billions of dollars on electric vehicles. One of the three models on batteries, the Mustang Mach-e, is produced in a factory near Mexico City.

    The company that has Chrysler, Dodge, Jeep and Ram uses in particular in Mexico in Mexico to assemble some popular models such as RAM -Pick -ups. Another model, the Chrysler Pacifica Minivan, is made in Ontario.

    Stellantis, created by the merger of Fiat Chrysler and Peugeot in 2021, also has struggling with a slow sale and is looking for a new Chief Executive. The company, together with some others such as Nissan, put those challenges with a greater risk, especially if the rates remain in place for months or years.

    Like other Japanese car manufacturers, Toyota is very dependent on the United States and sold 2.3 million cars in the country last year. About a million of those vehicles were made in other countries, many of them in Canada, Mexico and Japan. That can be a major problem for the company and car manufacturers such as Subaru and Mazda, with which Toyota works closely.

    But Toyota, the world's largest car maker, is in a better position than other car manufacturers. It is profitable and is considered by analysts as one of the best guided companies in the global car industry.

    The largest car maker in Europe can really be hurt by rates because it only has one factory in the United States, in Chattanooga, Tenn., Where it makes the Atlas and ID.4 sports aid programs. It imports many of his cars, including Audis and Volkswagens from Mexico and Porsches from Germany.

    The company has struggled financially in recent years because the turnover has fallen sharply in China, where domestic car manufacturers have grown rapidly by introducing many affordable electric and hybrid vehicles. Volkswagen had hoped to be in the United States, but Mr. Trump's newest rates could make that difficult task even more difficult.

    The South Korean Stablemates have made impressive sales profit in the United States in recent years. The companies have also invested in a new electric vehicle factory in Georgia that starts to increase production, which can help them prevent rates on some models.

    On Monday, Hyundai's executive chairman, Eisun Chung, announced with Mr Trump in the White House that his company would invest another $ 21 billion in the United States, including in 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 rates for the hundreds of thousands of cars they import in the United States. Many of those vehicles came from South Korea, who negotiated a trade agreement with the United States in 2007, which was updated during the first term of Mr Trump.