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The Star
13-05-2025
- Automotive
- The Star
Toyota faces biggest impact from Trump tariffs
Tokyo: Toyota Motor Corp is the biggest carmaker in the world –and also the auto industry's biggest loser when it comes to projected losses from US President Donald Trump's trade war. Duties on imported cars and auto parts forced General Motors Co to slash its full-year profit guidance by as much as US$5bil, while Ford Motor Co is bracing for a US$1.5bil annual hit. Toyota sees a US$1.2bil profit drop in just two months. While the Japanese automaker didn't provide a tally for all of this year, it did project operating income of 3.8 trillion yen or about US$26.1bil for its financial year ending March 2026 – far below the 4.7 trillion yen expected by analysts. While Toyota has increased local production in the United States to more than half of sales in the country, it still relies on imports of key vehicle parts and models – to the tune of some 1.2 million cars a year. The White House has noticed, with Trump calling out the Toyota City-based automaker by name during his contentious Liberation Day speech in the Rose Garden on April 2. He complained about Toyota's 'one million foreign made automobiles' sold in the United States. The huge tariff hit reflects the company's decision to hold the line on sticker prices at US dealers and production volumes at its 11 American factories amid the start of bilateral trade negotiations between the United States and Japan. Those talks started in February and it's unclear when they will conclude with a deal. 'When it comes to tariffs, the details are still incredibly fluid,' Toyota's chief executive officer, Koji Sato, said last week after releasing the latest financial results. 'It's difficult to take steps or measure the impact.' Japan's chief trade negotiator, Ryosei Akazawa, said on April 30 that one unnamed Japanese automaker is currently losing around US$1mil per hour from the tariffs, citing a calculation made by an unidentified corporate executive. A Japanese government official last Friday declined to provide more specifics. But that rate of loss isn't too far off the mark from the US$1.2bil hit Toyota is projecting based on 730 hours per month. Representatives for Toyota also didn't respond to a request for comment. Akazawa has expressed hope that an agreement could be reached in June with the next round of negotiations taking place in late May. Most imported vehicles became subject to a 25% US duty on April 3, while most auto parts become subject to that levy as of May 3. There are some executive orders that prevent duties from doubling up, but considering the United States is the biggest market for Japan's five largest carmakers, even a moderately increase in tariffs will have an outsized impact on their bottom lines. The Trump administration reached its first trade deal on May 8 with Britain. But the United States had a US$11.9bil goods trade surplus with Britain last year, whereas it ran a US$68.5bil deficit with Japan. That may make it more difficult to secure an agreement without significant concessions by one side. 'The hurdle is high for Japan to get auto tariffs lowered' on exports to the United States, said Hiroshi Namioka, chief strategist at T&D Asset Management Co. 'At the same time, the auto industry is too important for Japan to simply go along with what the US wants.' Some Japanese automakers have responded to the tough new trade environment by making changes to their global manufacturing footprints. Nissan Motor Co halted US orders for sport utility vehicles built in Mexico while Honda Motor Co is shifting production of the hybrid version of its Civic from Japan to the United States. Due to retaliatory tariffs against the United States, Mazda Motor Co is stopping exports to Canada of one model that's manufactured at an Alabama factory that's a joint venture with Toyota. 'We will maintain our current operations while continuing to focus on reducing fixed costs, all while keeping a close eye on the movements by US authorities, including customs duties,' a spokesperson for Toyota said in a statement. Toyota has already invested heavily to build out its US operations – including spending US$13.9bil on a new battery plant in North Carolina. But it also remains committed to maintaining its extensive domestic production base. Chairman Akio Toyoda has repeatedly pledged to keep making at least three million vehicles a year in Japan. Last year, the company built 3.1 million cars in its home country, about a third of its worldwide production total. Globally, Toyota sold 10.8 million cars last year, with the United States accounting for a little less than a quarter of those. While half were made locally and another 30% came from neighbouring Canada and Mexico, some 281,000 vehicles were imported from Japan. That includes popular models such as the 4Runner mid-sized sport utility vehicle, Prius hybrid and several upscale Lexus vehicles. The company's best-sellers in the United States – the RAV4 hybrid crossover and Corolla compact sedan – are assembled at factories in Kentucky and Mississippi. But petrol-only RAV4s are imported from Canada and the plug-in hybrid comes from Japan. — Bloomberg
Bloomberg
07-05-2025
- Automotive
- Bloomberg
American Car, Made in Korea: Why GM Is Getting Roiled by Tariffs
Long gone are the days when an imported car meant a foreign car. And no company proves the point more than General Motors Co. The Detroit stalwart imported more cars into the US last year than any other automaker, even Japan's Toyota Motor Corp. Nearly half of the vehicles GM sold in the US last year – 1.23 million autos – were built abroad, according to researcher GlobalData. That includes many of its most affordable models, like the Korean-made Chevrolet Trax and Buick Envista SUVs, whose low prices depend on cheap production.
Yahoo
02-05-2025
- Business
- Yahoo
General Motors Co (GM): Jim Cramer Calls It the 'Lowest Multiple' He's Seen — Value Play or Trap?
We recently published a list of . In this article, we are going to take a look at where General Motors Co (NYSE:GM) stands against other stocks that Jim Cramer recently discussed. In his appearance on CNBC's Squawk on the Street on Friday, Jim Cramer discussed the read-through of President Trump's transcript of the interview given to Time Magazine. Cramer commented: 'I've worked for Time for a while . . very few people actually do David anything that's contemporaneous, so to speak, so you're looking at something . . .I think that there are talks, but I don't think they're at a level that matters. I think we should just continue to think that there's going to be a day that comes, where everything's a lot more expensive.' The CNBC host also commented on President Trump's advisor Peter Navarro and his absence. Navarro is known to be a strong proponent of tariffs on America's trading partners. Mentioning Navarro, Cramer outlined: 'We don't know what Navarro's up to. Obviously Navarro is the hardest line American, there's 340 million of us, he's the hardest. And I'm not sure exactly where he is positioned versus Bessent which, Bessent's seems to be oppositional to, a bunch of people who are hardliners, don't you feel?' Since the primary target of the trade tariffs in China, Cramer mentioned his discussions with business executives and what they're doing to navigate the Chinese tensions. He explained: 'Well look I think that it's about blinking, nobody's blinking. And I think that, we obviously have four hundred and forty billion at stake, they have like a 150 billion, is a 150 billion more important? I know that every data. . .makes me feel like they don't need us. Whatever, they don't need us, and then everyday I meet CEOs, who have somehow, almost mystically, got out of China. . .I was with a CEO last night. . .I was saying, wow, the China. . .you guys must be, are you ready? He said what you think we just sat there and took it? This is about who does hundreds of millions of dollars of business in what I thought was China, gone, gone. . . .they're not building in China. And he made it sound like I was rude, that they would just sit there and take it. And then he went on to tell me, the only people who sat there and take it were the people who didn't bother to even listen to what was being said. And that the exodus is extraordinary.' Judging by the high tariffs on China, Cramer has long maintained that the tariffs are an embargo instead. He maintained the opinion: 'I don't think that, I think that there is an embargo. It's just an embargo, and I think that companies, kind of reminds of when Saigon fell, I mean there's companies that are like hanging on to the skids of the helicopter and they're trying to get out of China. And then there's other companies in China, and David, they kinda didn't get the memo. They missed the Navarro memo.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on April 25th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders In Q4 2024: 68 General Motors Co (NYSE:GM) is one of the biggest car manufacturers in America. It is a frequent feature on Cramer's show, and he has discussed the stock primarily in the context of the impact of tariffs on US car production. Cramer's recent remarks about General Motors Co (NYSE:GM) warned that the firm's future earnings could be in danger and wondered if it's a value trap. This time around, he compared the firm's valuation to Comcast: 'Okay so, I'm just gonna go there. Comcast sells 7.8 time forward earnings. So you have to go very far to find companies with that low multiple. . . .Their multiple is, only GM, that I have found is a lower multiple. So what do you make of that?' Overall, GM ranks 3rd on our list of stocks that Jim Cramer recently discussed. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
14-04-2025
- Automotive
- Globe and Mail
Tariffs Take Their Toll as Opportunity Beckons for General Motors Stock (GM)
President Trump's tariffs have sent shockwaves through the auto industry, and General Motors Co. (GM) is feeling the heat. The added levies on imported vehicles and parts threaten short-term pain, with higher costs and squeezed margins looming large. Yet, it's interesting that the same policies could spark long-term gains by nudging GM to bolster its U.S. manufacturing footprint. This could potentially strengthen its competitive edge. In the meantime, after a sharp selloff, GM's stock now trades at a somewhat depressed valuation multiple. Thus, I'm bullish on GM stock. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Tariff-Induced Turbulence Takes its Toll Despite Trump's 90-day tariff pause, which scaled back the initial 25% auto tariffs to a baseline 10%, GM faces a bumpy road. The company imports roughly 40% of its U.S.-sold vehicles from Mexico and Canada, including heavy-hitters like the Chevrolet Silverado and Equinox. Even at 10%, these tariffs could add thousands to each vehicle's cost, with estimates pegging an extra $3,000 to $7,000 per truck. Meanwhile, to further complicate matters, GM's supply chain is tightly woven across North America, so it depends on imported parts, from Mexican engines to Canadian transmissions, which face similar duties. You can see why this cost creep threatens to erode margins, with analysts forecasting a potential $5 billion hit to GM's 2025 earnings if tariffs persist. The ripple effects are already visible. Dealerships are bracing for price hikes, and consumers, mindful of inflation, may delay purchases, especially for GM's pricier SUVs and trucks. One could argue against this by saying that GM reported a 16.7% jump in Q1 U.S. sales last month. However, much of that was driven by buyers rushing to beat anticipated tariff-driven price increases. Considering the extreme levels of uncertainty on the horizon, I expect demand to nosedive, especially from budget-conscious buyers. Compounding the issue, GM's EV ambitions face further headwinds. I believe that models like the Equinox EV, built in Mexico, could become less competitive if tariffs pile on and Trump's plan to axe the $7,500 EV tax credit comes to pass. This is a bitter pill for a company like GM, which is banking on EVs to drive future growth. While GM's CEO, Mary Barra, insists the company can mitigate up to 50% of tariff costs through inventory tweaks and pricing, I think it's safe to say that the near-term outlook remains cloudy. Trump Tariff Tailwinds En Route Conversely, GM could emerge stronger if Trump's tariffs achieve their stated aim (i.e., to spur U.S. manufacturing). The Trump administration dreams of a booming domestic auto industry, with factories pushing out cars non-stop and jobs flooding back. In the best scenario for GM, this means a pivot to domestic production that will, in turn, reduce reliance on foreign plants. The company's already taken steps in this direction, announcing plans to ramp up truck production at its Fort Wayne, Indiana, plant, adding overtime and hundreds of temporary workers to push out more Silverados and GMC Sierras. GM might double down if tariffs are here to stay, investing billions to build new U.S. facilities or repurpose existing ones. If GM becomes less tethered to cross-border supply chains, churning out vehicles stamped 'Made in the USA' may resonate with consumers waving the stars and stripes, boosting brand loyalty in today's polarized market. The ongoing Tesla (TSLA) boycott is a prime example of how political perception can affect the bottom line. Over time, localizing production might shield GM from a prolonged trade war, unlike rivals like Stellantis (STLA), which, for context, lean quite heavily on European and Mexican output. In other words, if GM pulls it off, it could steal market share from import-dependent competitors, cementing its dominance in trucks and SUVs. Of course, this rosy scenario assumes smooth execution. Building factories takes many years and billions of dollars, as GM's CFO Paul Jacobson admitted, noting that relocating Silverado production from Mexico could cost a fortune and disrupt output for years. Still, GM should have the muscle to play the long game. If tariffs force a broader industry shift toward U.S. production, management's early moves could position it as a leader in a reshaped auto landscape. That would undoubtedly turn today's pain into tomorrow's gain. A Bargain from the Rubble Beyond tariff-driven market sentiment, GM's stock looks dirt cheap after the tariff-induced selloff, trading under 4x forward earnings despite projections of $9.63 billion in free cash flow this year. So, even with its weighty debt, GM stock trades at just 4.5x this year's expected free cash flow. This multiple screams value compared to Ford's 6 or Tesla's sky-high premiums. From another point of view, GM is trading at just 0.2x its forward sales, which is one of the lowest multiples the stock has ever traded in its history. Is GM a Good Stock to Buy Now? On Wall Street, analysts are relatively bullish on GM stock. The stock has a Moderate Buy consensus rating based on nine Buy, four Hold, and two Sell ratings over the past three months. GM's average price target of $58.10 implies a ~33% upside potential over the next twelve months, supporting my view of a steep discount at today's prices. GM Drives Forth in the Trump Era General Motors is in a tricky spot. On the one hand, it's being battered by Trump's tariffs. And yet, it is brimming with commercial performance and investor reliability. The stock has been one of America's most reliable stocks, with a decent dividend record over the past thirty years. It was America's largest company by market capitalization for several years before the Big Tech firms arrived in the early 2000s. Short-term pain, including higher costs and softer demand, may sting, yet the push for U.S. manufacturing could reshape GM into a domestic powerhouse, stealing a march on rivals. In my view, at under 4x earnings and 4.5x free cash flow, the stock's depressed valuation screams opportunity. Thus, for investors who can stomach the volatility, GM may offer a rare chance to buy a blue-chip name poised for a comeback.
Yahoo
10-04-2025
- Business
- Yahoo
Zacks.com featured highlights StoneCo, Associated Banc-Corp, EnerSys and General Motors
Chicago, IL – April 10, 2025 – Stocks in this week's article are StoneCo Ltd. STNE, Associated Banc-Corp ASB, EnerSys ENS and General Motors Co. GM. U.S. equities closed lower yesterday after a rollercoaster trading day, marked by initial optimism overshadowed by escalating trade tensions between the United States and China. Sentiment quickly soured as news of 104% tariffs on Chinese imports emerged, sending the Dow Jones Industrial Average plummeting 320 points. Concurrently, the S&P 500 and Nasdaq Composite indices also faltered, declining 1.6% and 2.2%, respectively. Many analysts now speculate that these tariffs could potentially deepen economic woes, raising fears of a looming recession and prompting speculation on future Federal Reserve actions regarding interest rates. Amid such a scenario, value stocks could draw attention as a compelling investment option. Typically trading below their intrinsic value, these stocks offer a margin of safety during market fluctuations. When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — StoneCo Ltd., Associated Banc-Corp, EnerSys and General Motors Co. Questions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting a company's financial health. Analysts caution that a company's earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use. A positive cash flow indicates an increase in the company's liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company's liquidity, which lowers its flexibility to support these moves. Here are four of the 15 value stocks that qualified the screening: Stone, a leading provider of financial technology and software solutions, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 5.8%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Stone's current financial year sales suggests growth of 4.1% from the year-ago period. STNE has a Value Score of B. Shares of STNE have fallen 36.9% in the past year. Associated Banc-Corp, the largest bank holding company based in Wisconsin, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 4.9%, on average. The Zacks Consensus Estimate for Associated Banc-Corp's current financial year sales and earnings per share (EPS) implies growth of 9.9% and 2.1%, respectively, from the year-ago period. ASB has a Value Score of B. Shares of ASB have declined 8.1% in the past year. See the Zacks Earnings Calendar to stay ahead of market-making news. EnerSys, the global leader in stored energy solutions for industrial applications, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 2.2%, on average. The Zacks Consensus Estimate for EnerSys' current financial year sales and EPS indicates growth of 1% and 19.8%, respectively, from the year-ago period. ENS has a Value Score of A. Shares of ENS have fallen 13.4% in the past year. General Motors, which designs, builds and sells cars, trucks, crossovers and automobile parts globally, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.8%, on average. The Zacks Consensus Estimate for General Motors' current financial year EPS suggests growth of 8.6% from the year-ago period. General Motors has a Value Score of A. Shares of GM have dipped 3.3% in the past year. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. 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Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Motors Company (GM) : Free Stock Analysis Report Enersys (ENS) : Free Stock Analysis Report Associated Banc-Corp (ASB) : Free Stock Analysis Report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
