The GM people are seen on a water tank of the General Motors Assembly plant at Ramos Arizpe in Kohuila State, Mexico on 11 February 2021.
Daniel Beseril | Roots
As Auto Stock on Thursday reacted to the latest tariff declaration outside Washington, DC, General Motors He took out the hits.
GM shares were more than 6% below 6% in mid-wine business, which were reducing the choice Paid And DescendantWhich shed 2% and 1% respectively. Tesla The stock was more than 5%.
The deviation stems from the amount of vehicles that import GM, and especially its contact to Mexico.
Dutush Bank analysts wrote in a note on Thursday, “Tesla and Ford vehicles seem to be the most given place of assembly facilities, although Ford faces increased risk on imported engines.” “GM has the highest risk for Mexico.”
President Donald Trump on Wednesday announced that his administration would impose 25% tariffs on “all cars not made in the United States” and some automobile parts. The executive order signed on Wednesday allows some generosity for components that are in line with the United States-Maxico-Canada Agreement, but it was not immediately clear what relief the offer of the North American motor vehicle industry could provide.
General Motors Stock falls after the announcement of Trump Tariff.
According to Globaladata, Mexico was responsible for importing 16.2% vehicle in the US as a percentage of sales in 2024. It was the largest part of any country, which was doubled about shares of South Korea and Japan, which was second and third respectively in terms of imports of imports.
According to a research by Barcalage analyst Dan Levi, 52% GM vehicles were roughly collected of GM vehicles sold in the US during the first three quarters of 2024. It collects 30% in Canada and Mexico, and another 18% has been brought from other countries.
Levi also reported that GM depends a lot on Mexico and South Korea for the production of some of its small crossover, including its equinox and blazer vehicles.
He said, “About half of GM’s American sales originates in the US, but imported parts are a matter of concern.”
During the same period, 57% of stalentis vehicles and 78% Ford vehicles sold in the US were assembled. Levi reported that Stalentis assembled 39% of its American-barberry units in Canada and Mexico, and Ford, just 21%.
Emmanuel Rosar of Wolf Research said that tariffs mainly affect foreign-brand automakers, but said that 15% of GM vehicles of GM come from South Korea.
John Murphy of Bank of America said compared to a comprehensive motor vehicle market, GM is “relatively relatively” and may require an imbalance.
GM stock is less than 13% years till date. The shares declined rapidly at the end of January, when investors were concerned that the automaker did not address concerns about tariffs in its most recent earning report.
