President Donald Trump congratulated Mary Barra (R), CEO of General Motors before a meeting with leaders of the automobile industry at the Roosevelt Room of the White House in Washington, DC on January 24, 2017.
Saul Loaib | AFP | Getty images
Detroit – General Motors Believe that it can reduce 50% potential tariff to the President Donald Trump On Tuesday, CEO Mary Barra said that imports from Canada and Mexico are being threatened to impose imports.
The Chief Executive Officer said that the Detroit Automeker has casual plans if tariffs are imposed on auto parts and vehicles coming to the US from two neighboring countries. This involves “without deploying any capital” to avoid short -term effects of potentially 30% and 50% additional costs.
“We are ready,” Barra said during a Wolf Research Investment Conference on Tuesday. “When we know what is really going to happen and/or even a sign of what is going to happen, we know the steps we can take.”
GM CFO Paul Jacobson, who appeared with Barra, stated that if the tariffs were long, the company could take additional measures such as production or transfer of parts or vehicles.
Comments are the most detailed so far how GM believes it can reduce the effect of tariff because the concern of the investor is a matter of concern that the automekar’s quarterly earnings were not addressed during the call call two weeks ago. Was. The company’s stock is 8%less.
There are some operations of GM in Canada, with more adequate production in Mexico. This includes its several low-priced electric vehicles as well as its highly profitable full-sized pickup trucks.
Barra’s comments follow Crossstown Rival Ford Motor CEO Jim Farley said that Trump’s tariffs, whether implemented or threatening, are creating “chaos” for the American automotive industry.
Ford CEO Jim Farley at the company’s Dearborne, Michigan, Plant, where it is building electric F -150 lightening on April 26, 2022.
CNBC | Michael Wiland
Farley describes this week 25% tariff on steel and aluminumAlso threatened the levy of the same amount on Mexico and Canada, as is currently adding “a lot of costs, and a lot of chaos” in the industry.
“President Trump has talked a lot about strengthening our American auto industry, brings more production here, more innovation in the US, and if his administration can achieve it, it is one of the most signatures achievements. One will be, “Farley said separately. Volf Conference. “What we are seeing so far is a lot of cost, and a lot of chaos.”
Farley and Incoming Ford CFO Sherry House stated that most of the company’s steel and aluminum is domesticly sour; However, there are suppliers for the automakers who are sources of materials from outside the country that can affect the cost.
Barra said that GM is “evaluating” the impact of steel and aluminum tariffs on its business, but the company said that the company is a source of “important” amount of both from the US in a short term, he said that GM also said that GM also Pricing on different shopping.
Both GM and Ford contributed each $ 1 million with vehicles for the opening of Trump. Along with the two, officials have also confirmed that they have talked about the auto industry with Trump.
The House said on Tuesday that the biggest concern for Ford is one of all these tasks that appear relatively on suppliers, with a combination to negatively influence the automaker’s business.
“We have to deal with this. That’s what I am talking about the cost of chaos. A little here, a little there. … This is what we are dealing with now,” said Farley.
Ford and GM Stock
Farley seemed to be the most concerned about potential duties on goods from Mexico and Canada, saying that a long -term 25% tariff that would be effective to fly a hole in the “destructive” and “American industry on 1 March. Never seen
The White House did not immediately respond to the remarks of Farley’s comments.
Farley said that he is traveling to Washington, DC on Wednesday, to meet with government officials in the second time, including Congress members, to emphasize how the policy uncertainty is affecting the industry. Is.
Last week, Farley also said that if the Trump administration is going to implement the tariff affecting the motor vehicle industry, it should be taken. Look at all countries “comprehensive”.
Farley exits Toyota motor And Hyundai Motor To import hundreds of thousands of vehicles from Japan annually and South KoreaRespectively, no duty is less than 25% tariff trump Plan to impose on Canada and Mexico,
Ford regularly involves its American business in advertising campaigns. The company is the number 1 auto producer in the US, with most vehicles to gather domestically and export to other countries.
Improvement: Farley was most concerned about possible duties on goods from Mexico and Canada. An earlier version denied one of the countries wrong.
