Latest news with #G.M.
Yahoo
20-05-2025
- Automotive
- Yahoo
The auto industry is scaling back
The auto industry slowdown continues. Honda (HMC) on Tuesday scaled back its electric vehicle targets, citing diminishing U.S. demand. The Japanese automaker had initially planned to invest $69 billion in an electrification strategy by the end of 2031 but has reduced the figure to $48 billion. 'The environment surrounding the automobile industry is changing day by day. Uncertainty in the business environment is increasing, due particularly to the slowdown in the expansion of the EV market due to several factors, including changes in environmental regulations,' Honda said in a statement. The decision is 'a switch in the planned course,' said Honda Motor Co. Chief Executive Toshihiro Mibe. Although the company remains committed to its long-term electrification, the roadmap faces delays, he added. And General Motors (GM) on Monday halted exports of Chevrolet Tahoe sport utility vehicles to China, and announced it will forgo plans to export other high-end models there. G.M. began shipping the America-made Tahoes to China last year, a spokesman said, under a scheme called the Durant Guild, named after G.M founder, Billy Durant. 'Due to significant changes to economic conditions, we have decided to restructure the Durant Guild and correspondingly optimize G.M. China's operations,' the automaker said in a statement. Yet, it's worth noting, Durant exports account for less than 0.1 percent of the 443,000 vehicles that G.M. manufactures and sells in China. There are several obstacles weighing on the domestic auto industry. Trump introduced a 25% tariff on cars and parts imported into the U.S. in March. Shortly after, the S&P Global (SPGI) downgraded its 2025 forecast for U.S. vehicle sales by 700,000. This is on top tit-for-tax tariffs: a 30% levy remains on Chinese goods, and U.S. imports into China face a 10% tax. The GOP also has launched an assault on EVs. House Republicans have proposed ending Inflation Reduction Act tax credits for buyers, and the Trump administration is rolling back auto emissions standards. New data suggests that EV demand could be slowing as a result. Installation of high-speed chargers fell by more than 21% in the first quarter compared to the year-earlier period, according to a Bloomberg analysis of Energy Department data. BloombergNEF has reduced its cumulative estimate for U.S. charging installations by 20% this year, down to 285,000. BloombergNEF analyst Ash Wang foresees annual U.S. charger installations by 2030 even dropping by 30% or more, 'if [we] continue in this direction,' she told Bloomberg. Souring consumer sentiment toward Tesla (TSLA) CEO Elon Musk may also be hampering sales. An Axios Harris Poll 100 on Tuesday revealed a 30% drop in Tesla's reputation over the last decade, plummeting from 'Excellent' to 'Poor.' Shares in Tesla fell by more than 50% between December and April, although they have rebounded in recent weeks as Musk reassured investors he would be taking a step back from overseeing the Department of Government Efficiency, or DOGE. Signs of a strained U.S. auto market come as CATL, the world's biggest EV maker, made its market debut on Tuesday, launching its initial public offering in Hong Kong— the world's largest this year. Despite U.S. investors being locked out from the listing, shares in CATL surged 16% on the first day of trading. For the latest news, Facebook, Twitter and Instagram. 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
NBC Sports
14-05-2025
- Sport
- NBC Sports
Matthew Judon: I think I can still play, just weighing the options
Veteran edge rusher Matthew Judon has not signed with a team for the 2025 season and he's not sure if that's going to change. Judon had 41 tackles, 5.5 sacks, and an interception in 17 games for the Falcons after being acquired in a trade with the Patriots last year and he said that he's heard from a couple of teams since becoming a free agent in March. His sack numbers were down on a per-game basis from his time in New England, but Judon said he believes it was due to being asked to drop into coverage more often and that he remains confident in his ability to play. 'I think I can still,' Judon said, via Kyle Odegard of 'But that's not up to me. I'm not a G.M. making that decision. I just have to be ready if and when my name is called.' Judon said a return to the Falcons is 'probably' unlikely after they drafted two edge rushers in the first round and that he's happy to continue 'weighing the options' while teams go through their offseason programs.
New York Times
01-05-2025
- Automotive
- New York Times
GM Cuts Profit Forecast by 20% and Says Auto Tariffs Will Cost It Billions
General Motors cut its profit forecast for 2025 on Thursday by more than 20 percent and said that the Trump administration's tariffs would increase its costs by $4 billion to $5 billion this year. In a conference call with analysts, G.M. executives said the company now expects to make $8.2 billion to $10.1 billion this year, down from a previous forecast of $11.2 billion to $12.5 billion. 'G.M.'s business is fundamentally strong as we adapt to the new trade policy environment,' the company's chief executive, Mary T. Barra, said. In April, President Trump imposed tariffs of 25 percent on imported vehicles and will begin imposing the same duty on imported auto parts on Saturday. On Tuesday the president modified how the tariffs are applied to give automakers some relief, including partial reimbursement for tariffs on imported parts for two years. Ms. Barra said G.M. hopes to offset about 30 percent of the impact of the tariffs by increasing production in U.S. plants, cutting costs, and working with suppliers to raise their domestic production of parts and components. G.M. had previously said it was increasing pickup truck production at a plant near Fort Wayne, Ind., which will reduce the number of vehicles it imports from Canada and Mexico. Ms. Barra said output at the Fort Wayne factory would increase by about 50,000 trucks this year. She also said G.M. now plans to make more battery modules in its U.S. plants to raise the portion of domestic content in its electric vehicles. About $2 billion in tariff-related cost increases will come from vehicles that are made in Canada, Mexico and South Korea and sold in the United States. Analysts have predicted that the tariffs will add thousands of dollars to the cost of new cars and trucks, and some or all of that would be passed on to consumers. In the call, G.M.'s chief financial officer, Paul Jacobson, said the company now expects new vehicle prices to rise 0.5 percent to 1 percent this year, he added. Previously, the company had forecast that pricing would fall by 1 percent to 1.5 percent. Other automakers are also planning to produce more vehicles in the United States. Mercedes-Benz said Thursday that it would build a new vehicle at an Alabama factory as part of what the German carmaker called a 'deepening commitment' to manufacturing in the United States. While the company did not mention tariffs, Mercedes and other carmakers have been at pains in recent weeks to emphasize how many cars they already build in the United States and their plans to make more. Mercedes did not provide details about the car, except to say that it would be a new design tailored to the U.S. market and begin production in 2027. The company's factory near Tuscaloosa, Ala., primarily assembles luxury sport utility vehicles, including electric models, for sale in the United States and export to other markets. Jack Ewing contributed reporting.
New York Times
29-04-2025
- Automotive
- New York Times
Trump to Grant Carmakers Some Relief From His Punishing Tariffs
President Trump plans to sign an executive order Tuesday that will walk back some tariffs for carmakers, administration officials said, removing some levies that Ford, General Motors and others have complained would backfire on U.S. manufacturing by raising the cost of production and squeezing their profits. The changes will modify Mr. Trump's tariffs so that carmakers who pay a 25 percent tariff on imported cars are not subject to other levies, for example on steel and aluminum, officials said in a call with reporters Tuesday. Carmakers will also be able to qualify for tariff relief for a proportion of the cost of their imported components, though those benefits will be phased out over the next two years. The decision to reduce the scope of the tariffs is the latest sign that the Trump administration's decision to impose stiff levies on nearly all trading partners has created chaos and economic uncertainty for American companies. On Tuesday, General Motors said it would abandon a previous forecast for solid profit growth this year as a result of the uncertainty created by Mr. Trump's trade policies. The carmaker, which sells more vehicles in the United States than any other company, said that any profit prediction would be a 'guess.' 'The prior guidance cannot be relied upon,' Paul Jacobson, G.M.'s chief financial officer, said during a conference call with reporters. Want all of The Times? Subscribe.
New York Times
29-04-2025
- Automotive
- New York Times
White House Looks to Take Steps to Ease Pain From Car Tariffs
The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States. Tariffs of 25 percent on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not 'stacked' with other tariffs, for example on steel and aluminum, a White House spokesman said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts. In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be phased out over two years, the spokesman confirmed. A 25 percent tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts. 'President Trump is building an important partnership with both the domestic automakers and our great American workers,' Howard Lutnick, the commerce secretary, said in a statement. 'This deal is a major victory for the president's trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.' But even with these changes, there will still be substantial tariffs on imported cars and auto parts, which will raise prices for new and used cars by thousands of dollars and increase the cost of repairs and insurance premiums. The modification to the tariffs was reported earlier by The Wall Street Journal. Mr. Lutnick helped automakers secure a major exemption from tariffs in March and has taken on a role advocating relief for some industries hit by the levies. Automakers welcomed the change. 'We believe the president's leadership is helping level the playing field for companies like G.M. and allowing us to invest even more in the U.S. economy,' Mary T. Barra, the chief executive of General Motors, said in a statement on Monday. 'We appreciate the productive conversations with the president and his administration and look forward to continuing to work together.'
