President Donald Trump welcomed General CEO of General Motors, Mary Barra (R) Before meeting with the leaders of the car industry at Roosevelt Room at the White House in Washington, January 24, 2017.
Saul Loeb AFP Getty images
Detroit – General Motors believes that this can soften to 50% of the potential president of the tariffs Donald Trump He threatens to impose imports from Canada and Mexico, said Mary Barra General CEO on Tuesday.
The general director said that the car manufacturer in Detroit has emergency plans if the tariffs are downloaded into car parts and vehicles coming to the USA from two neighboring countries. This includes potentially avoiding short -term effects from 30% to 50% of additional costs “without implementing capital”.
“We are prepared,” Barra said on Tuesday during the Wolfe Research investment conference. “When we know exactly what will happen and/or even indicates what will happen, we know the steps that we can take.”
CFO GM Paul Jacobson, who appeared in Barra, added that if the tariffs are extended, the company could take additional funds, such as changing production or parts or vehicles.
Comments are the most detailed, as he believes that GM can reduce the impact of tariffs after investors' fears on this problem during a quarterly connection with the producer's earnings two weeks ago, sending The company's shares fall by 8%.
GM has some operations in Canada, with more significant production in Mexico. This includes many cheaper electric vehicles, as well as highly profitable full -size trucks.
Barry's comments followed the rival Crosstown Ford engine General Director Jim Farley, who speaks Trump's tariffs, implemented or threatened, cause “chaos” to the American automotive industry.
CEO Ford, Jim Farley from Dearborn, Michigan, Sadza, in which he builds Electric F-150 Lightning on April 26, 2022.
CNBC Michael Wayland
Farley described this week 25% tariffs for steel and aluminumAnd also threatened fees of the same amount in Mexico and Canada, which now add “a lot of costs and a lot of chaos” to the industry.
“President Trump said a lot about the strengthening of our American automotive industry, bringing more production, greater innovation in the US, and if its administration can achieve this, it would be one of … the most characteristic achievements,” Farley told the Wolfe conference separately. “So far we see a lot of costs and a lot of chaos.”
Farley and the upcoming Ford Cfo Sherry House said that most of the company's steel and aluminum are obtained in the country; However, manufacturers of manufacturers are suppliers who will obtain such materials from outside the country, which may affect costs.
Barra noticed that GM “assesses” the impact of steel and aluminum tariffs on its activities, but she said that the company allows the “significant” amount of both from the US in a short period, she said that GM also has determined valuations of such purchases.
Both GM and Ford brought $ 1 million, along with vehicles, to the inauguration of Trump. Management with both confirmed that they talked to Trump about the automotive industry.
House on Tuesday said that the greatest concern for Ford is all those activities that seem relatively minimal, including suppliers, combining with a negative impact on the producer's activities.
“We will have to deal with it. This is what I'm talking about about chaos. A bit here.
Ford and GM supplies
Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying that a long -term 25% tariff, which can come into force, as soon as March 1 is “destructive” and “blow into a hole in the American industry, where we are never never I saw. “
The White House did not immediately answer about the commentary on Farley's comments.
Farley said he was traveling to Washington on Wednesday for the second time in three weeks to meet with state officials, including members of the Congress, to emphasize how the uncertainty of politics affects the industry.
Last week, Farley also said that if Trump's administration intends to implement tariffs affecting the automotive industry, it should take “Comprehensive” look at all countries.
Farley stood out Toyota Motor AND Hyundai Motor for importing hundreds of thousands of vehicles a year from Japan and South KoreaAccordingly, which have small or no obligations compared to the 25% Trump tariff Plans to impose Canada and Mexico.
Ford regularly advertises its American business, including in advertising campaigns. The company is a manufacturer of cars No. 1 in the USA, and most vehicles gathered in the country, as well as exported to other countries.
Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada. The earlier version distorted one of the countries.