Latest news with #EU-made
Miami Herald
10 hours ago
- Automotive
- Miami Herald
Why Luxury Car Prices Are About to Get Brutal
Porsche and Aston Martin have begun raising prices in the United States as hopes of automotive-specific carveouts in trade deals fade, Reuters reports. The price hikes come shortly after a trade deal between the U.S. and the European Union that includes a 15%-tariff on EU-made cars beginning in August-lower than Trump threatened, but much higher than the 2.5% tariff from before President Donald Trump launched his global trade war. On Wednesday, Porsche said it had raised U.S. prices by 2.3% to 3.6% in July, Reuters reported, but said it had no plans to move production to the U.S. Bringing more manufacturing to the U.S. by making imports more expensive has been a primary aim of Trump's tariff policy. Aston Martin said it had begun "incremental" price increases in June, while issuing a profit warning based on U.S. tariffs and low demand in Asia. "This is not a storm that will pass," Porsche CEO Oliver Blume said after the automaker cut its full-year profit target and reported a $462 million hit from tariffs in the first half of 2025. "We continue to face significant challenges around the world." Porsche isn't alone. Hyundai, Mercedes-Benz, and Porsche's parent brand Volkswagen all reported losses, issued profit warnings, or discussed raising prices in response to Trump's tariffs, Reuters noted. Even Ford, which claims around 80% of its vehicles are assembled domestically, reported an $800 million tariff penalty in its second-quarter results. European automakers had been hoping for tariff reductions specific to the auto industry, but the recent deal has eroded optimism, according to Reuters. Mercedes CEO Ola Källenius told analysts Wednesday that the automaker was assuming tariffs would remain at 15% for the time being. "For all intents and purposes, that global deal for now is it," Källenius said, adding that any side deals were "very uncertain." The Volkswagen Group last week, however, said it was hoping to negotiate lower U.S. tariffs based on investment commitments. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
CNBC
14 hours ago
- Automotive
- CNBC
Ferrari shares slump 12% in biggest drop since 2016 listing
Ferrari shares fell more than 12% on Thursday, setting the stock for its biggest one-day drop since its listing nine years ago, even as the luxury sports car maker maintained its guidance, although it said it would cut back prices in the U.S.. Citi analysts said that although Ferrari continued to deliver solid results, the focus had now shifted to whether the Milan- and New York-listed group can sustain its high profitability amid slowing growth in sales volumes and pricing. "The focus now shifts to how far the EBIT margin can go in H2, with shipments and (Average Selling Prices) slowing," wrote Harald Hendrikse at Citi. Ferrari said it will reduce the price compensation it introduced in April on some cars sold in the United States once tariffs on EU-made products effectively move to 15% from 27.5%.
Yahoo
14 hours ago
- Automotive
- Yahoo
Ferrari shares slump 12% in biggest drop since 2016 listing
MILAN (Reuters) -Ferrari shares fell more than 12% on Thursday, setting the stock for its biggest one-day drop since its listing nine years ago, even as the luxury sports car maker maintained its guidance, although it said it would cut back prices in the U.S.. Citi analysts said that although Ferrari continued to deliver solid results, the focus had now shifted to whether the Milan- and New York-listed group can sustain its high profitability amid slowing growth in sales volumes and pricing. "The focus now shifts to how far the EBIT margin can go in H2, with shipments and (Average Selling Prices) slowing," wrote Harald Hendrikse at Citi. Ferrari said it will reduce the price compensation it introduced in April on some cars sold in the United States once tariffs on EU-made products effectively move to 15% from 27.5%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
LeMonde
16 hours ago
- Business
- LeMonde
'Europe's ability to defend its interests, already questionable, is now seriously in doubt'
The announcement of a deal between the European Union and the United States has shaken up what looked set to be a quiet summer. The official confirmation that Europeans would meekly accept a 15% tariff on their exports to the US is, without doubt, striking. However, beyond the heated debate in France, which is known neither for its subtlety nor its benevolence toward the EU or the US, any definitive judgment seems premature. First of all, what do we actually know? As with all trade agreements from the Trump administration – fond of dramatic announcements – we can, for now, only rely on the words of the leaders. For details, we must wait for the publication of a jointly approved text, something this administration no longer guarantees. Incidentally, this will likely only be a political agreement on unilateral actions by each partner, not a trade agreement in the strict sense of the term. So it will not be subject to the usual approval and enforcement mechanisms. Scope still to be defined The main element of the agreement is that Europeans will accept 15% tariffs on all of their €532 billion in exports to the US in 2024, relinquishing retaliatory measures that this blatant breach of international law would have allowed them to take. That tariff rate will be the one currently applied, not an increase as in the case of the United Kingdom (+10%). While this may seem modest compared to the average pre-Trump tariff rate of about 3.5%, many sensitive products already faced tariffs between 5% and 15%, especially in the agricultural sector, which lessens the scale of the EU's concessions. Furthermore, vehicles, which have faced 27.5% tariffs since April, would, in practice, see a specific reduction for EU-made products. Exemptions also apply. Under a zero-for-zero framework, the entire aerospace and minerals sectors, as well as "certain" chemical, pharmaceutical, agricultural (including spirits) and semiconductor products would see their tariffs lifted. Depending on the final scope, which remains to be defined, this would affect 10% to 20% of EU exports to the US.
Business Recorder
a day ago
- Automotive
- Business Recorder
Porsche, Aston Martin hike US prices as hopes for tariff sweeteners fade
BERLIN: European luxury carmakers including Porsche and Aston Martin have surged ahead with US price hikes, which could point the way for bigger brands to follow in their wake as companies pass on the cost of tariffs. The United States and Europe reached a trade deal that will see EU-made cars hit with a 15% tariff from August, lower than once threatened but far higher than the 2.5% rate before US President Donald Trump launched his trade offensive this year. On Wednesday, Volkswagen's luxury brand Porsche said it had raised U.S. prices by between 2.3% and 3.6% in July, with no plans for now to establish a U.S. production presence - a move that would let it avoid the levies. 'This is not a storm that will pass,' Porsche CEO Oliver Blume said after the company cut its full-year profit target and flagged a $462 million hit from tariffs in the first half. 'We continue to face significant challenges around the world.' U.S. tariffs have pummelled global automakers, forcing companies such as GM, Volkswagen, Hyundai and Mercedes-Benz to book billions of dollars of losses, issue profit warnings, slash forecasts and raise prices. Ford Motor , which boasts domestic production for around 80% of the vehicles it sells in the U.S., said on Wednesday that second-quarter results took an $800 million hit from tariffs and higher U.S. levies would likely cost more than expected for the year. Japanese carmaker Nissan reported a $535 million quarterly loss on Wednesday, impacted by U.S. tariffs, restructuring and lower sales volumes. British sports-car maker Aston Martin said it had made incremental price increases in the United States since last month, issuing a profit warning based on the U.S. tariffs impact and prolonged suppressed Asian demand. Additional costs While bigger carmakers have so far held off, other sectors have seen price hikes as companies have looked to pass on the additional cost of tariffs. Analysts said larger carmakers could take similar steps in the second half of the year. 'Into H2, we are looking to gain additional visibility with regards to the ability of Mercedes-Benz and the rest of the premium OEMs to increase prices in the U.S. in order to offset the impact of tariffs,' J.P. Morgan said in a note. European carmakers are also getting less optimistic that they could seal extra sector-specific tariff reductions, resigned to dealing with the 15% rate. Mercedes CEO Ola Kaellenius told analysts on Wednesday that the group was assuming tariffs would remain at 15%, throwing cold water on hopes companies may be able to negotiate individual deals. 'For all intents and purposes, that global deal for now is it,' said Kaellenius, also president of Europe's car lobby ACEA. Any side deals were 'very uncertain'. Volkswagen had said last week it was hoping investment commitments could help it negotiate lower US tariffs. But Porsche CEO Blume, also head of VW, suggested there would not be a separate U.S. deal for the automotive sector. 'I agree with Ola Kaellenius' assessment that there will not be a separate automotive deal,' Blume said.
