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Straits Times
23-07-2025
- Automotive
- Straits Times
Trump tariffs take $1.4 billion bite out of GM earnings
General Motors is so far keeping pricing consistent and absorbing added tariff costs rather than passing them on to customers. Bengaluru - General Motors' second-quarter earnings took a US$1.1-billion (S$1.4 billion) hit from tariffs, but the automaker still beat analyst expectations for the period on July 22, supported by strong sales of its core petrol trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by US$4 billion to US$5 billion in 2025. GM said it could take steps to mitigate at least 30 per cent of that impact. The automaker's revenue in the quarter ended June 30 fell nearly 2 per cent to about US$47 billion from a year ago. Its adjusted earnings before interest and taxes fell 32 per cent to US$3 billion. GM was among corporations that revised annual guidance due to the impact from US President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between US$10 billion and US$12.5 billion. The company on July 22 stood by that forecast. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. The automaker is so far keeping pricing consistent and absorbing added tariff costs rather than passing them on to customers. The automaker imports about half of the vehicles it sells in the United States, mainly from Mexico and South Korea. GM announced in June that it would invest US$4 billion at three US facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. Crosstown rival Ford produces about 80 per cent of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week Top stories Swipe. Select. Stay informed. Business Singapore's digital banks finding their niche in areas like SMEs as they narrow losses in 2024 World Trump says US will charge 19% tariff on goods from Philippines, down from 20% Singapore Two found dead after fire in Toa Payoh flat Singapore 2 foreigners arrested for shop theft at Changi Airport Opinion Most companies onboard wrong – here's how to get it right Life Ozzy Osbourne, Black Sabbath's bat-biting frontman turned reality TV star, dies aged 76 Singapore Singaporeans continue to hold world's most powerful passport in latest ranking Singapore Ports and planes: The 2 Singapore firms helping to keep the world moving Jeep-maker Stellantis on July 21 warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main source of profit – rose 7 per cent. GM also swung back to a small profit in China, after losing money there a year earlier. GM took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of petrol-powered cars and trucks by 2035. Car companies are increasingly shifting their focus to bolstering the core lineup of petrol trucks and SUVs, as the growth rate of electric vehicle sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate US$7,500 tax credits for buying or leasing new EVs and a US$4,000 used-EV credit at the end of September. Mr Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles. 'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,' GM chief executive officer Mary Barra told analysts on July 22. REUTERS
New York Post
22-07-2025
- Automotive
- New York Post
GM profit hurt by over $1B in tariffs — and shares tumble as impact expected to worsen
General Motors' second-quarter earnings took a $1.1 billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact. Shares fell about 6% in early trading. 3 GM's revenue in the quarter fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Bloomberg via Getty Images The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32% to $3 billion. GM was among corporations that revised annual guidance due to the impact from President Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast. Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit center – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of rival Ford Motor, and US-traded shares of Stellantis fell about 1% Tuesday morning. 3 Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. CEO Mary Barra, above. AP The automaker took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of gas-powered cars and trucks by 2035. 'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our North Star,' GM CEO Mary Barra told analysts Tuesday. GM announced in June that it would invest $4 billion at three facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week. 3 GM imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. REUTERS Car companies are increasingly shifting their focus to bolstering the core lineup of gas trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate $7,500 tax credits for buying or leasing new electric vehicles and a $4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles.
Yahoo
29-05-2025
- Business
- Yahoo
Factbox-How big global companies are dealing with tariff trauma
(Reuters) -Major companies across the world are laying out plans to tackle the fallout from the Trump administration's trade war, highlighting how rapid tariff changes are deepening uncertainty around financial planning. An analysis by Reuters showed the impact stretches into billions of dollars. Sector bellwethers have slashed or withdrawn earnings forecasts, cautioned about rising costs, and unveiled strategies to navigate the uncertainty ahead. Here is a look at how some of the biggest companies in the world have reacted to tariffs over the past few weeks: Company Country Forecast Changes/ Costs Impact Supply Chain Changes/ Others Comments Profit Warning Price Changes Apple United Predicts hit to Q3 gross Warned of $900 million iPhones sold in the Trims share CEO: We have a complex States margins costs related to tariffs U.S. in Q2 will come buyback program by supply chain. There's from India; vast $10 billion always risk in the supply majority of products chain for markets outside U.S. will come from China Ford United Suspended FY25 guidance; Estimated gross cost of Hiked -- Offsetting $1 billion of States predicts $1.5 bln impact to tariffs at ~$2.5 billion prices on three of its tariff costs through FY25 core earnings Mexico-produced models measures including transporting vehicles from Mexico to Canada using bond carriers General United Cut FY25 profit forecast Tariff exposure expected Working with suppliers Temporarily paused CEO: "Making a commitment Motors States between $4 billion and $5 to further increase buyback activity that we are going to bring billion their U.S. content for more production back to higher levels of this country to build on compliance with the what we already have." USMCA trade agreement Walmart United Withheld Q2 earnings -- To start raising prices Working with CEO: Will do best to keep States guidance in May due to high cost suppliers to prices as low as possible; of tariffs substitute unable to absorb all the tariff-affected pressure given narrow components retail margins Toyota Japan Forecast 21% decline in FY25 Estimates 180 billion yen -- Intends to CEO: Over long-term, we'll profit ($1.25 billion) hit to continue to continue to progress with April-May results increase dividends local production and despite tariff development and in impact short-term we'll work on optimising operations to best meet demand. Honda Japan Forecast a 59% decline in Expects 650 billion yen -- Its plans to build Expect to offset 200 FY25 profit hit to its FY26 operating an EV supply chain billion yen of tariff profit in Canada to be impact through "recovery put on hold for efforts" "approximately two years" Delta Air United Withdrew FY25 forecast Forecast Q2 profit below -- To defer aircraft CEO: "Given broad economic Lines States expectations deliveries that uncertainty around global face tariffs and trade, growth has largely slash capacity to stopped." protect margins RTX Corp United -- Expects $850 million hit -- -- CEO: Current environment is States to profit over 2025 clearly very dynamic, but our company is well-positioned to perform operationally 3M United Predicts impact of 20-40 Sees $850 million of Plans to leverage its -- CEO: Have opportunities to States cents/share on 2025 adjusted potential annualized network to mitigate the shift around network to profit impact before exemptions tariff costs bring product into China from other regions that don't have same sort of tariff effect Johnson & United Cuts FY25 adjusted Predicts $400 million -- -- CEO: Tariffs on Johnson States operational earnings cost hit, primarily in pharmaceuticals can create forecast medical device business supply chain disruptions; favorable tax policies would be more effective in boosting U.S. manufacturing capacity MTU Aero Germany -- Expects impact of tariffs -- -- CEO: U.S. customs policy is Engines to be in the mid-to-high highly volatile at the double-digit million moment and its potential euros range in 2025 impact on the global aviation industry is hard to predict right now Porsche Germany Cut FY25 profit margin and Suffered a hit of at -- -- CFO: Localising production revenue forecast least 100 million euros in the U.S. made no sense across April and May at the moment due to Porsche's low vehicle sales figures Mercedes-Benz Germany Withdrew FY25 earnings If tariffs remained in -- "Constructive" CEO: "Clearly Mercedes-Benz place all year, profit talks with the is a global player ... we margins would reduce by Trump don't fear competition in 300 bps on cars and 100 administration any direction. But that's bps on vans over boosting not the environment we're Mercedes' U.S. operating in." manufacturing presence ongoing Stellantis Netherlands Suspends FY25 guidance -- Calibrating production To reasses capital Company: "Response and and employment to spending plans mitigation actions will reduce impacts on between May and continue to be refined as profitability June and calibrate appropriate." "production and employment to reduce impacts on profitability". Volvo Cars Sweden Withdrew earnings guidance -- Need to adapt to a more Announced "cost CEO: Era of "being a global for FY25 and FY26 regionalised world, and cash action company", having global including a more plan" worth 18 products and shipping cars tailored approach for billion Swedish back and forth over the each region crowns, as well as borders, "seems to be restructuring of gone". U.S. operations (Source: Reuters' stories and company disclosures) ($1 = 143.5700 yen) Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Factbox-How big global companies are dealing with tariff trauma
(Reuters) -Major companies across the world are laying out plans to tackle the fallout from the Trump administration's trade war, highlighting how rapid tariff changes are deepening uncertainty around financial planning. An analysis by Reuters showed the impact stretches into billions of dollars. Sector bellwethers have slashed or withdrawn earnings forecasts, cautioned about rising costs, and unveiled strategies to navigate the uncertainty ahead. Here is a look at how some of the biggest companies in the world have reacted to tariffs over the past few weeks: Company Country Forecast Changes/ Costs Impact Supply Chain Changes/ Others Comments Profit Warning Price Changes Apple United Predicts hit to Q3 gross Warned of $900 million iPhones sold in the Trims share CEO: We have a complex States margins costs related to tariffs U.S. in Q2 will come buyback program by supply chain. There's from India; vast $10 billion always risk in the supply majority of products chain for markets outside U.S. will come from China Ford United Suspended FY25 guidance; Estimated gross cost of Hiked -- Offsetting $1 billion of States predicts $1.5 bln impact to tariffs at ~$2.5 billion prices on three of its tariff costs through FY25 core earnings Mexico-produced models measures including transporting vehicles from Mexico to Canada using bond carriers General United Cut FY25 profit forecast Tariff exposure expected Working with suppliers Temporarily paused CEO: "Making a commitment Motors States between $4 billion and $5 to further increase buyback activity that we are going to bring billion their U.S. content for more production back to higher levels of this country to build on compliance with the what we already have." USMCA trade agreement Walmart United Withheld Q2 earnings -- To start raising prices Working with CEO: Will do best to keep States guidance in May due to high cost suppliers to prices as low as possible; of tariffs substitute unable to absorb all the tariff-affected pressure given narrow components retail margins Toyota Japan Forecast 21% decline in FY25 Estimates 180 billion yen -- Intends to CEO: Over long-term, we'll profit ($1.25 billion) hit to continue to continue to progress with April-May results increase dividends local production and despite tariff development and in impact short-term we'll work on optimising operations to best meet demand. Honda Japan Forecast a 59% decline in Expects 650 billion yen -- Its plans to build Expect to offset 200 FY25 profit hit to its FY26 operating an EV supply chain billion yen of tariff profit in Canada to be impact through "recovery put on hold for efforts" "approximately two years" Delta Air United Withdrew FY25 forecast Forecast Q2 profit below -- To defer aircraft CEO: "Given broad economic Lines States expectations deliveries that uncertainty around global face tariffs and trade, growth has largely slash capacity to stopped." protect margins RTX Corp United -- Expects $850 million hit -- -- CEO: Current environment is States to profit over 2025 clearly very dynamic, but our company is well-positioned to perform operationally 3M United Predicts impact of 20-40 Sees $850 million of Plans to leverage its -- CEO: Have opportunities to States cents/share on 2025 adjusted potential annualized network to mitigate the shift around network to profit impact before exemptions tariff costs bring product into China from other regions that don't have same sort of tariff effect Johnson & United Cuts FY25 adjusted Predicts $400 million -- -- CEO: Tariffs on Johnson States operational earnings cost hit, primarily in pharmaceuticals can create forecast medical device business supply chain disruptions; favorable tax policies would be more effective in boosting U.S. manufacturing capacity MTU Aero Germany -- Expects impact of tariffs -- -- CEO: U.S. customs policy is Engines to be in the mid-to-high highly volatile at the double-digit million moment and its potential euros range in 2025 impact on the global aviation industry is hard to predict right now Porsche Germany Cut FY25 profit margin and Suffered a hit of at -- -- CFO: Localising production revenue forecast least 100 million euros in the U.S. made no sense across April and May at the moment due to Porsche's low vehicle sales figures Mercedes-Benz Germany Withdrew FY25 earnings If tariffs remained in -- "Constructive" CEO: "Clearly Mercedes-Benz place all year, profit talks with the is a global player ... we margins would reduce by Trump don't fear competition in 300 bps on cars and 100 administration any direction. But that's bps on vans over boosting not the environment we're Mercedes' U.S. operating in." manufacturing presence ongoing Stellantis Netherlands Suspends FY25 guidance -- Calibrating production To reasses capital Company: "Response and and employment to spending plans mitigation actions will reduce impacts on between May and continue to be refined as profitability June and calibrate appropriate." "production and employment to reduce impacts on profitability". Volvo Cars Sweden Withdrew earnings guidance -- Need to adapt to a more Announced "cost CEO: Era of "being a global for FY25 and FY26 regionalised world, and cash action company", having global including a more plan" worth 18 products and shipping cars tailored approach for billion Swedish back and forth over the each region crowns, as well as borders, "seems to be restructuring of gone". U.S. operations (Source: Reuters' stories and company disclosures) ($1 = 143.5700 yen) Sign in to access your portfolio
Miami Herald
21-05-2025
- Automotive
- Miami Herald
New Vehicle Inventory Is Shrinking, 3 Ways Shoppers Are Affected
Recent data from Cox Automotive has revealed that new vehicle inventory declined 7.4% in April compared to March. May began with 2.49 million new cars on dealer lots compared to 2.69 million at the start of April, representing a 10.5% drop. During the start of May, U.S. dealers had an average new vehicle supply lasting 66 days, down 16 days year-over-year and six days from last month. While spring has historically been a catalyst for new vehicle sales, inventories aren't being replenished at their usual rate with lower manufacturing and delivery numbers from some automakers amid tariff uncertainty. These changes in production and delivery figures have caused many automakers to withdraw their financial guidance for 2025. In turn, consumers shopping for a new car face slimmer options, fewer incentives, and higher prices. Automakers are on the verge of introducing 2026 production year vehicles at showrooms, but they're also expected to update their inventory with higher tariff-related pricing. New vehicle sales increased 10.5% year-over-year in April, although this figure rises to 14.9% when you don't account for April 2025 having one more selling day than April 2024, according to J.D. Power. Still, some consumers have been rushing to buy new cars to avoid tariff-induced price increases, so sales rates will likely continue tapering off from April. Mid-April saw a 30-day sales peak, but the month's last two weeks experienced a noticeable decline in purchase rates. The average new vehicle listing price was $48,656 at the end of April, marking an increase of $774, or 1.6%, from $47,882 at the start of the month, and $1,318 (2.8%) from a year earlier. While consumers brace for higher new car prices and are currently shopping with reduced inventories, price increases weren't universal. BMW, Buick, Mitsubishi, and Dodge saw month-over-month price declines, while RAM, Lincoln, and Cadillac represented the most significant monthly cost hikes. Dealers are also giving shoppers fewer incentives for new vehicle purchases. According to Cox Automotive data, new vehicle sales incentives dropped to 6.7% of average transaction prices, down 7% from March. However, some brands have more pre-tariff cars available than others. Toyota and Lexus have the lowest supply at 29 and 25 days, respectively, whereas RAM, Mitsubishi, Infiniti, and Land Rover have inventories exceeding 100 days. Due to tariffs, Ford has already raised prices on its Mexico-produced Bronco Sport, Maverick, and Mustang Mach-E. On Monday, Subaru announced tariff-related price increases for several models. New vehicle shoppers can gain clarity during this turbulent time by understanding inventory figures, as automakers with higher dealer inventories may offer more pre-tariff-priced models. Additionally, knowing which automakers are more reliant on U.S. imports, like Audi, might indicate which companies are most likely to introduce price increases sooner rather than later. Slimmer inventories don't necessarily mean you won't get the model you want, but they may limit your ability to get certain features like specific color combinations. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
