Proposed Trump tariffs could 'eliminate all profits of Detroit Three', Barclays says

Autoliv

27/11/2024 16:07

** Brokerage firm Barclays says President-elect Donald
Trump's proposed 25% tariff on Canadian and Mexican auto
imports, if implemented, could eliminate all profits for the
Detroit Three - General Motors  GM.N , Ford  F.N  and Stellantis
 STLAM.MI  
    ** Automakers typically operate on relatively lean profit
margins and a 25% tariff on vehicles and parts coming from
Mexico and Canada would represent a significant cost to absorb -
Barclays 
    ** Brokerage identifies Aptiv Plc  APTV.N , American Axle &
Manufacturing  AXL.N  and Autoliv  ALV.N  as the most exposed
suppliers and likely to be most affected by the proposed tariffs
    ** Barclays, however, says it does not expect the final
tariff rates at 25%
    ** Brokerage believes GM at most risk from the move, as
about 30% of its North American production is based in Mexico
    ** Following GM, Stellantis has about 29% and Ford has about
16% of its production based in Mexico - brokerage
        ** Shares of GM up 2.1% and Ford's up 0.6% in the
morning trade, while U.S.-listed shares of Stellantis up 1.5%
  

 (Reporting by Rupali Chaudhary in Bengaluru)
 ((Rupali.Chaudhary@thomsonreuters.com))