Jamie L. LaReau Detroit Free Press Published 10:47 p.m. UTC Jul 26, 2018 Detroit's automakers are profitable, but they face a turbulent second half of 2018. After second-quarter earnings reports Wednesday from all three domestic car companies, analysts and auto executives outlined mounting challenges in international markets, especially China, and the looming threat of President Donald Trump's proposed 25 percent increase in tariffs on imported cars and parts, which could inflate prices across the board. General Motors, Fiat Chrysler and Ford Motor Co. reported mixed second-quarter results. All were profitable, but by less than they were in the second quarter last year. Overall, the companies remain very strong. "Lessons of the Great Recession are fresh. They know how to rein in cost and anticipate demand," said Michelle Krebs, executive analyst for AutoTrader. "But the tariffs add in a level that we can’t anticipate." GM and … [Read more...] about U.S. automakers report lower profits, see pitfalls for rest of year
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Sections SEARCH Skip to content Skip to site index Business Day Subscribe Log In Subscribe Log In Advertisement Supported by ByReuters July 3, 2018 (Reuters) - Top U.S. automakers reported stronger June sales, as consumers continued to snap up sport utility vehicles and trucks in larger numbers, parking for now worries about rising fuel prices, higher interest rates and trade tensions. Investors have sold off shares in Detroit automakers General Motors Co , Ford Motor Co and Fiat Chrysler Automobiles NV during the past month. Rising tensions between the United States and its trade partners and threats of tit-for-tat auto tariffs have rattled the auto sector, adding to worries that the U.S. auto industry's nine-year recovery from the 2008 financial crisis must soon end. Still, June was a solid month for vehicle demand in the United States, and especially for the SUVs and large pickups that generate the bulk of global profits for the … [Read more...] about Top U.S. Automakers Report Higher Vehicle Sales in June
For the first time, a woman will lead one of the Detroit Three as General Motors names Mary Barra to the top post today. Currently senior vice president of global operations, she succeeds outgoing CEO Dan Akerson, who announced his retirement this morning. Barra has been with GM since 1980, starting her career there as a co-op student at Pontiac. After graduating from Kettering University with a bachelor's degree in electrical engineering, she moved up the ranks in several engineering and managerial positions, including executive director of competitive operations engineering; plant manager of GM's Hamtramck Assembly plant (home of the Volt); and vice president of global manufacturing engineering. Before being named as SVP of global operations, Barra was vice president of global human resources. Akerson's departure, effective January 15, comes on the heels of the U.S. Treasury selling off its final shares in GM, ending government ownership. The former communications executive was named … [Read more...] about Mary Barra To Be Named CEO Of GM, First Female CEO Of U.S. Automaker
Supported by Business Day By REUTERSAPRIL 3, 2018, 3:55 P.M. E.D.T. Continue reading the main story Share This Page Continue reading the main story DETROIT — Major automakers on Tuesday reported higher new vehicles sales for March on the back of a strong U.S. economy and big consumer discounts, sending shares in Detroit's automakers up.Industry sales in March rose 2.5 percent to 1,653,529, according to Autodata, which said the seasonally adjusted annual rate for the month was a better-than-expected 17.5 million versus 16.8 million a year ago. Analysts polled by Reuters had expected a March SAAR of 16.9 million.General Motors Co posted a 16 percent jump in new vehicle sales from the previous March, led by a 14 percent increase in higher-margin retail sales to consumers. Fiat Chrysler Automobiles NV (FCA) reported a 14 percent increase and said it saw a 45 percent spike in sales of its popular Jeep models, giving the brand its best sales month on record.The strong … [Read more...] about Strong Economy, Discounts Boost Automakers U.S. March Sales
Supported by Business Day By REUTERSAPRIL 3, 2018, 12:47 P.M. E.D.T. Continue reading the main story Share This Page Continue reading the main story DETROIT — General Motors Co said on Tuesday it will stop reporting monthly U.S. vehicle sales, saying the 30-day snapshot does not accurately reflect the market and the company will, instead, issue quarterly sales reports.GM will also no longer report monthly sales in China, its largest market, or Brazil. The company will provide monthly data to the U.S. Federal Reserve, industry associations and government agencies across the globe but that data will not be made public.Other major automakers indicated on Tuesday that they would not immediately follow GM's lead on switching to reporting sales on a quarterly basis."At this time, we are maintaining our reporting of sales on a monthly basis," said spokesman for Fiat Chrysler Automobiles NV. Advertisement Continue reading the main story On a conference call with analysts … [Read more...] about GM to Drop Monthly U.S. Vehicle Sale Reports
U.S. automakers' products make up a sizable chunk of China's long list of consumer goods targeted for a 25 percent tariff. The entire list is daunting to read, but here's the section of it specific to cars, to give a flavor of the dispute. Despite the list's strangely specific-yet-vague bureaucratic wording, at the bottom are some catchall "Other vehicles" line items, including "Other manned vehicles." In other words, everything's fair game: Offroad vehicles (4WD) of cylinder capacity exceeding 2.5L but not exceeding 3L Offroad vehicles (4WD) of cylinder capacity exceeding 2.5L but not exceeding 3L, with spark ignition internal combustion reciprocating piston engine Offroad vehicles (4WD) of cylinder capacity exceeding 1.5L but not exceeding 2L Offroad vehicles (4WD) of cylinder capacity exceeding 1L but not exceeding 1.5L, with spark ignition internal combustion reciprocating piston engine 38 Station wagons (9 seats or less) of cylinder capacity exceeding 1.5L but not exceeding 2L; … [Read more...] about What U.S. cars are on China tariff list?
U.S. aerospace companies, automakers, grain merchants and chipmakers were the early casualties on Wednesday after China and the United States announced tariffs on $50 billion of imports, cementing fears they were spiraling toward a trade war. The speed with which the trade spat between Washington and Beijing is ratcheting up — the Chinese government took less than 11 hours to respond with its own measures — led to a sharp selloff in global stock markets and commodities. At 6:22 a.m. ET, Dow e-mini stock futures were down 568 points, S&P 500 e-minis fell 48 points and Nasdaq 100 e-minis dropped 148.25 points. The stock futures implied the exchanges would all experience sharp declines at opening. China levied 25 percent additional tariffs on U.S. goods, but unlike Washington's list that covers many obscure industrial items, Beijing's covers 106 key U.S. imports including soybeans, planes, cars, whiskey and chemicals. As has been the case since the trade war fears … [Read more...] about Automakers, Boeing lead list of casualties in China-U.S. trade spat
Since President Donald Trump’s administration took office, the auto industry has been clamoring to have the strict fuel economy standards set by his predecessor reversed. On Monday, that process began with an announcement by Trump’s Environmental Protection Agency. But the automakers themselves could wind up seriously hindered if the standards are drastically weakened. Consider the current environment of the auto market: sales, most observers agree, plateaued in 2017. Car buyers are already borrowing record amounts to purchase a car and average to loan terms exceeding 70 months. Many of those sales are driven by big SUVs, crossovers and trucks as gas has stayed cheap—for now. And the bottom of the market—that is, subprime borrowers that were offered loose credit for years, helping automakers reach those record sales—are disappearing from the new car market entirely. All signs sure seem to be pointing to shaky, precarious territory, and now, with the … [Read more...] about Why U.S. Carmakers Could End Up Wishing They Never Asked For Weaker Fuel Economy Standards
Guangzhou Automobile Group (GAC) is the latest and best-positioned Chinese automaker with plans for sales in the U.S. Days after GAC showed off a sample of its lineup at the Detroit auto show, including a sub-brand that is (fortunately or unfortunately) named Trumpchi, the automaker and its home country's trade policies faced criticism from U.S. politicians.Reuters reports that Sen. Chuck Schumer, D-N.Y, argued on the Senate floor on Wednesday of this week that Chinese trade rules as they apply to cars are "manifestly unfair, and a typically unfortunate example of China’s rapacious trading policies."Schumer's arguments stem from the fact that Chinese-built automobiles would face a 2.5 percent tariff, while cars exported from the U.S. to China face a 25 percent tariff. This is why many U.S. automakers that sell cars in the Middle Kingdom build them there, including Buick, which has a much larger lineup in China than in the U.S. and now exports one model to the U.S.The White House … [Read more...] about Will Chinese automaker GAC’s U.S. ambitions run into political headwinds?
DETROIT — Fiat Chrysler Automobiles said on Thursday it will shift production of Ram Heavy Duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker's profit should President Donald Trump pull the United States out of the North American Free Trade Agreement.Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit, where the Ram 1500 is currently built, and FCA will invest $1 billion in the facility. The Mexican plant will be "repurposed to produce future commercial vehicles" for sale global markets. Mexico has free trade agreements with numerous countries.Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision.If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in … [Read more...] about FCA shifts Ram Heavy Duty trucks from Mexico to U.S., creating 2,500 jobs