Almost all automakers will feel a pinch from a new tariff imposed by President Trump on Saturdays on products imported from Canada, Mexico and China.
Automakers are shipped over the US and Mexican borders, and ships tens of millions of dollars -worth, engine, transmission, and other components per week. Billion dollars are imported from Chinese parts manufacturers.
Customs duties that will be valid at 12:01 am on Tuesday are widely expected to increase the price of US consumers to new cars. And customs duties come when new cars and trucks are already sold at almost a record price.
General Motors, the largest car manufacturer in the United States, will probably be most affected.
According to Marklines, a car industrial data provider, GM produces more vehicles in Mexico than any other manufacturer. And some of those vehicles are most important in the company lineup.
Everything sold by the Chevrolet Equinox and Blazer Sport-Utility Vehicty VehicleS in the United States comes from Mexico. The Chevressil Bird Pickup Track, the Topseller Model, and the same GMC Siera Pickup can make a great profit to the company. Marklines data shows that nearly half of the more than one million trucks built last year were produced by Canada and Mexico plants.
The Canada and Mexico GM plant produced almost 40 % of all vehicles made in North America last year.
Some other car manufacturers, including Stellantis, TOYOTA, and Honda, also earn about 40 % of North American cars and trucks in Canada and Mexico, but most of the car manufacturers are produced to produce less vehicles than GM. You may not feel the effects of tax and the effects of the tax as much as GM.
Patric Anderson, the highest executive of Anderson Economic Group, based in Michigan, said: “And obviously, GM is more vulnerable than most car manufacturers for production footprints in North America.”
Anderson states that the most immediate impact on tariffs will be confusing at the border intersection, in order to sort out how to deal with vehicles and parts that are already on trucks, the tariff agent, shipper, and harbor will try to sort out vehicles and parts. I did it. Border.
He presumed that tariffs could add more than $ 10,000 to trucks and other large vehicles shipped from Canada and Mexico to the United States. “At least in the short term, most of them will be absorbed in customers and car dealers,” he said.
He added that the manufacturer needed to seek how to shift and coordinate production to avoid or limit the burden on tariffs.
Few car manufacturers talked about President Trump's plan. Automobile executives do not want to offend Trump and do not want to invite retaliation from him, his aide, and other federal staff, so he is hesitant to say something in tariffs. 。
The lobby activity group representing the three Detroit car manufacturers American Automotive Policy Council states that vehicles and parts that comply with the domestic and regional rules of the United States and Mexican Canada should be exempted from tariffs. The statement has been published.
“American automakers, who have invested in billions of dollars in the United States to meet these requirements, should not impair the cost of US architectural vehicles and impair the competitiveness of STYMIE investment in US labor.” Matt Brandt, the president, and the group.
Jennifer Safavian, president and highest executive of Autos Drive America, is the highest executive of Autos Drive America, a lobby activity group that represents foreign -owned car manufacturers operating in the United States. The car industry is very integrated, and tariffs will be harmful.
GM is considering some steps necessary to relieve the impact of tariffs, such as an increase in the production of pickup trucks in the United States, and export vehicles to countries other than North America using a Canada and Mexico factories. I am doing it.
“We are planning and have some lever we can draw,” said Mary T. Rose, the company's highest executive officer. He talked at a telephone conference to discuss GM's 2024 financial results.
Mark Wakefield, the lead of the global car market of ALIXPARTNERS, a consulting company, stated that tariffs could lead to unemployment in North America and automotive parts factories because the manufacturer was scrambled. 。
“North America has been treated as one market by the automotive industry for decades,” he said. “Prices increase and sales may decrease. We need to build less vehicles.”
Linda Hasenfrats, an executive chair uman of a automotive part company, states in a statement of the New York Times, as the automotive industry will have difficulty in absorbing the cost of tariffs and avoiding production to avoid production. Ta.
“If 10 % or 25 % tariffs are imposed on automotive parts across the border, we will stop manufacturing vehicles immediately in North America,” said HasenFratz. “Automotive parts are designed to be highly designed to be incorporated into the vehicle, and requires tool -up, verification, and tests for several months or several years for testing. They cannot simply replace them overnight.”
Chrysler, Dodge, Jeep and Lamb owned, and all of the criser Pacificaminivan in Windsor, Ontario. Also, create a DODGE Charger Muscle Car that contains a new electric version. Approximately two -thirds of the very highly profitable RAM pickups are made in the United States, but the other is from the Saltillo factory in Mexico.
Stellantis did not respond to the comment request.
Toyota and Honda are more dependent on Canada than other manufacturers. Both manufacture more than 1 million vehicles a year in North America, and plants on the north of the border account for more than one quarter.
Toyota manufactures several RAV4 SUVs in the United States, but most of them come from Woodstock and Cambridge plants in Ontario. The company also manufactures Lexus SUVs in Ontario. Honda is in the same position with Civic Sedan and CR-V SUV. Most are made in Ariston, Ontario.
Customs duties are binding to some companies that do not have many plants in North America. The three selling vehicles of Volkswagen in the United States -Jetta Sedan, Taos and Tiguan's SUVs are made in Mexico. The company has one factory in the United States, located in Chatanuga, Tennessee, and in 2024 Volkswagen sold more than 230,000 Mexico vehicles in the United States. I said.
“We are strongly supporting free and fair transactions,” Volkswagen stated in a statement. “We believe that the open market is the driving force of global economic growth and prosperity, promoting innovation and creating opportunities for companies and communities around the world.”
Like rivals, Ford Motor produces some important models in Canada and Mexico. Bronco sports, which are the electric Mustang Mach, Marvelic pickup, and compact sports utility vehicles, are assembled in Mexico. The only automotive assembly factory in Canada was idling in May, but the engine is manufactured with two plants of Windsor.
However, Ford has a lower exposure than most people. Last year, nearly 2.5 million vehicles were manufactured in North America, and more than 82 % of them rolled from the US assembly line. High size and full -size pickups in margins are all made in Japan. Only 2 % of the production volume came from Canada and 16 % from Mexico.
“Ford is the most dedicated in the United States among the major automakers in the United States,” said the company in late November why the stock price was lower than other automakers after Trump's election.
Ian Austin has contributed to the report.
