The rates on cars and cars announced by President Trump on Wednesday will have large -scale effects on car manufacturers in the United States and abroad.
But there will be important differences based on the circumstances of each company.
Tesla
The company managed by Trump’s confidant, Elon Musk, makes cars in the United States in the factories in California and Texas. As a result, it is perhaps the least exposed to rates.
But the company acquires parts of other countries – about a quarter of the components in value in its cars come from abroad, according to the National Highway Traffic Safety Administration.
In addition, Tesla is fighting for the fall of sales all over the world, in part because the political activities and statements of Mr. Musk have deactivated the buyers of moderate and liberal cars. Some countries may try to take revenge against the rates of Mr. Trump by targeting Tesla. Some Canadian provinces have already stopped offering incentives for the purchases of Tesla electric vehicles.
General engines
The largest US car manufacturer imports many of its best -selling and most profitable cars and trucks, in particular from Mexico, where it has several large factories that churn out models such as Chevrolet Silverado. About 40 percent of GM sales in the United States last year were vehicles assembled abroad. This could make the company vulnerable to rates.
But unlike other car manufacturers, GM has recorded strong profits in recent years and is considered by analysts in good financial position. This could help to resist the better than other companies rates, especially if import taxes are removed or diluted by Mr. Trump.
Ford engine
Ford makes much less dependence on imported cars than many of his rivals. It does about 80 % of vehicles selling in the United States in the country. Consequently, it would be relatively isolated from the rates of 25 percent on imported vehicles.
But the company still depends on foreign factories for the main parts such as engines. A Ford Factory in Ontario, for example, creates engines for some of his trucks. Ford has lost billions of dollars on electric vehicles. One of its three battery models, Mustang Mach-e, is produced in a factory near the Mexico City.
Stellantis
The company that owns Chrysler, Dodge, Jeep and Ram, uses factories abroad, in particular in Mexico, to assemble some popular models such as RAM trucks. Another model, the Chrysler Pacific minivan, is made in Ontario.
Stellantis, who was created by the 2021 merger of Fiat Chrysler and Peugeot, has also fought with slow sales and is looking for a new CEO. These challenges put the company, together with others like Nissan, at greater risk, especially if the rates remain in place for months or years.
Toyota
Like other Japanese car manufacturers, Toyota depends a lot on the United States and has sold 2.3 million cars in the country last year. About one million those vehicles were made in other countries, many of which in Canada, Mexico and Japan. This could be a big problem for the company and car manufacturers such as Subaru and Mazda, with which Toyota works closely.
But Toyota, the largest car manufacturer in the world, is in a better position than other car manufacturers. It is profitable and considered by analysts as one of the best companies in the global automotive sector.
Volkswagen
The largest European car manufacturer could be really injured by rates because it has only one factory in the United States, Chattanooga, Tennessee, where it produces Atlante and ID.4 Sport Utility Vehicles. It matters many of her cars, including Auis and Volkswagens from Mexico and Porsches from Germany.
The company has financially fought in recent years because its sales have decreased abruptly in China, where national car manufacturers have grown rapidly by introducing many electric and hybrid vehicles at affordable prices. Volkswagen had hoped to make his way to the United States, but the latest rates of Mr. Trump could make this difficult task even more difficult.
Hyundai and be
South Korean stable have achieved impressive sales gains in the United States in recent years. The companies have also invested in a new electric vehicle factory in Georgia which is starting to increase production, which could help them avoid rates on some models.
On Monday, the executive president of Hyundai, Euisun Chung, announced to the White House with Mr. Trump that his company would have invested another 21 billion dollars in the United States, also in a new steel factory in Louisiana. Although Hyundai and Kia now have three factories in Georgia and Alabama, they will not be able to avoid rates on the hundreds of thousands of cars that import in the United States. Many of those vehicles came from South Korea, which negotiated a commercial agreement with the United States in 2007 which was updated during Trump’s first term.