Inchcape warns that car supply could be impacted by US tariffs
Car distribution firm Inchcape has cautioned that supply from some manufacturers could be impacted by new US tariff plans as it revealed a slump in sales.
The London-listed company saw shares slip in early trading on Thursday as a result.
Duncan Tait, group chief executive of the company, stressed that demand is 'not currently being impacted by the tariff situation' but said it does expect a potential impact to manufacturers, market competition and broader demand.
He added: 'We are taking proactive steps to support our key stakeholders, including taking a conservative approach to managing inventory levels, ensuring we remain disciplined on costs, focusing on cash generation and maintaining our strong balance sheet.'
It comes after President Donald Trump announced a 25% tariff on all cars imported to the US, including from the UK.
On Thursday, Inchcape reported that group revenues dropped by 5% to £2.1 billion over the three months to March 31, compared with a year earlier.
It said this was linked to weaker organic sales amid 'mixed market momentum and tough comparators'.
Inchcape reported an improved performance in the Americas, while revenues were weaker in Europe and Africa.
Nevertheless, the business – which employs more than 17,000 people globally – maintained its trading guidance for the year and said it expects another year of growth.
Mr Tait said: 'We achieved further operational and strategic progress during the first quarter, evidenced by market share gains in key markets and several contract wins, and the progression of our £250 million share buyback programme.
'As the leading global automotive distributor, Inchcape remains well positioned to support our key stakeholders in navigating the current market uncertainty, as our experienced leadership team has done during challenging market environments in previous years.'
Last year, Inchcape sold its UK car retail operations to US-based rival Group 1 Automotive for £346 million.
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