President Donald Trump welcomes General Motors -CEO Mary Barra (R) before meeting with managers in the automotive industry in the Roosevelt area of the White House in Washington, DC, on January 24, 2017.
Saul Loeb | AFP | Getty pictures
Detroit – General Motors It is clear that it can alleviate up to 50% of potential tariffs, Donald Trump to impose imports from Canada and Mexico, said CEO Mary Barra on Tuesday.
The managing director said that Detroit car manufacturer has emergency plans that are ready when tariffs are collected on car parts and vehicles that come from the two neighboring countries to the USA. This may include avoiding short -term effects between 30% and 50% of the additional costs “without capital”.
“We are prepared,” said Barra on Tuesday during a Wolfe Research Investment Conference. “If we know exactly what will happen and/or even have an indication of what will happen, we know which steps we can take.”
GM CFO Paul Jacobson, who appeared at Barra, added that if the tariffs were extended, the company could take additional measures such as the shift in production or parts or vehicles.
The comments are the most detailed ones so far, as GM believes that it could reduce the effects of tariffs after the investor concerns with regard to the problem during the quarterly win of the car manufacturer were not treated two weeks ago and the company's shares sent by 8%.
GM has some operations in Canada with a stronger production in Mexico. This includes many of the cheaper electric vehicles and its highly profitable pickup trucks in full size.
Barra's comments followed Crosstown -Rival Ford engine CEO Jim Farley says that Trump's tariffs, whether implemented or threatened, cause “chaos” for the US automotive industry.
Jim Farley, CEO of Ford, in Dearborn, Michigan, planted the Electric F-15 Lightning on April 26, 2022.
CNBC | Michael Wayland
Farley described the 25% tariffs in steel and aluminum this week as well as threatened taxes with the same amount in Mexico and Canada, since “many costs and a lot of chaos” in the industry are currently being expanded.
“President Trump spoke a lot about making our US car industry stronger, bringing more production here, more innovations in the USA and if his administration can achieve this, it would be one of the … The most striking achievements” The Wolfe conference . “So far we see a lot of costs and a lot of chaos.”
Farley and incoming Ford CFO Sherry House said that a large part of the steel and the company's aluminum was domestically. However, there are suppliers of the car manufacturer who obtain such materials outside the country, which could affect the costs.
Barra noticed that GM “rates” the effects of steel and aluminum tariffs on its business, but said that the company will evaluate a “considerable” amount of both by the USA at short notice.
Together with vehicles, both GM and Ford contributed 1 million US dollars to Trump's inauguration. Managers with both of them have also confirmed that they spoke to Trump about the auto industry.
House said on Tuesday that the biggest concern for Ford is all of these measures that appear relatively minimal, including the suppliers who have a negative impact on the car manufacturer's business.
“We have to deal with it. I talk about the chaos. A little bit here, a bit there.
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Ford and GM shares
Farley seemed most concerned about possible tasks for goods from Mexico and Canada and said that a long -term 25% tariff that could never come into force until March 1st. “
The White House did not immediately answer comments on Farley's statements.
Farley said that on Wednesday he was in three weeks to Washington, DC for the second time to emphasize with government officials, including members of the congress, to emphasize how political uncertainty affects the industry.
Last week Farley also said when the Trump administration will implement tariffs that affect the automotive industry, it should be a “comprehensive” view of all countries.
Farley picked out Toyota engine And Hyundai engine For the import of hundreds of thousands of vehicles annually from Japan and South Korea, they have little to no tasks compared to 25% tariff that Trump plans for Canada and Mexico.
Ford regularly advertises his American business, including in advertising campaigns. The company is the No. 1 in the USA, whereby most vehicles are assembled in Germany and exported to other countries.
Correction: Farley seemed to be most concerned about possible tasks to be from Mexico and Canada. An earlier version has given one of the countries incorrectly.
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