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
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