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General Motors has reduced his advice on profits for the year in response to Donald Trump's trade war, warning against up to 5 billion dollars in exposure to the radical rates of the American president.
In a letter to the shareholders on Thursday, the American car manufacturer said it was now expecting an annual adjusted profit between $ 10 billion and $ 12.5 billion before interest and taxes compared to a previous range of $ 13.7 billion at $ 15.7 billion.
Two days earlier, the company had made his advice and shareholdings temporarily suspended due to uncertainty surrounding trade with the United States.
GM warning of a price exposure between $ 4 billion and $ 5 billion even came after the American president offered a little relief In the automotive industry earlier in the week by sparing car companies of some of its steepest samples.
Due to the changing nature of the Trump administration's business policies, Mercedes-Benz and Stellantis companies to Volvo cars are struggling to calculate the impact of 25% withdrawals on imports of vehicles made abroad.
In a speech to Michigan on Tuesday, Trump offered small discounts to car manufacturers who produce their vehicles in the United States to compensate for the costs of its larger samples, as well as exemption from administration prices on steel and aluminum for imported parts.
“We are impatient to maintain our solid dialogue with the administration on trade and other policies as they evolve,” said GM director general, Mary Barra, in the shareholders' letter.
GM is widely considered as the Detroit car manufacturer most exposed to prices due to its wider operations in Canada and Mexico. It is about half of the vehicles it sells in the United States in the two neighboring countries, including its popular Chevrolet Silverado van. It is also important to vehicles it sells in the United States from South Korea.
To mitigate the prices, GM said that it planned to increase the production of full -scale vans in its assembly plant near Fort Wayne, Indiana, by around 50,000 units per year.
On Tuesday, GM said an adjusted profit of $ 3.5 billion before interest and tax in the first quarter, down 9.8% over one year, on an increase of 2.3% of income to $ 44 billion – slightly higher than the average estimate of analysts, according to S&P Capital IQ.
