Automaker on Tuesday said that as a result of the uncertainty created by President Trump’s trade policy, General Motors is abandoning this year’s Ogrent profit growth.
The Trump administration has imposed 25 percent tariffs on imported cars this month and says it will impose 25 percent tariff on imported parts on Saturday. GM that sells about half of the cars in the United States in a normal year is made abroad, mostly in Canada and Mexico.
Paul Jacobson, chief financial officer of the organization, called for a conference with journalists, “We will not give any further directions on the tariff until we are even more clear.” “We guess what the administration can do is that the company does not want to have such a number from.”
He added that GM believed that Mr. Trump’s tariff could “be” material “, which means that they could have a considerable impact on the company’s income this year.
GM also said on Tuesday that it made $ 2.5 billion in the first quarter, which has decreased percent percentage over a year ago. The company was injured by a reduction of a 14 percent reduction of income before North America and taxes, where it earned almost all its profits. Its businesses that serve in other parts of the world record small profits.
The company had earlier said that it is expected to earn between $ 1.2 billion to $ 12.5 billion for 2021, which is twice as $ 6 billion last year.
Mr Jacobson said, “The previous direction cannot be rely on.”
In addition to 25 percent tariffs on imported cars, the Trump administration has increased tariffs on imported steel and aluminum, increasing the cost of widely used metals in the vehicle. Mr. Trump has also raised considerable tariffs on China and imposed a lot of tariffs in many other countries that he later decreased by 10 percent for 90 days.
Mr Jacobson said GM had “productive discussion” with the administration of the Trump, but he refused to say the details. “I don’t want to meet as an attempt to discuss with the public,” he said. “We are hoping to get more clarity about the customs situation for the auto industry.”
Mr Jacobson says the tariffs had a minimum impact on the company’s financial performance in the first quarter because they had not implemented until April 3. “The fundamentals of our business are strong,” he said.
GM had earlier said that it would increase the production of pickup trucks at a plant near Fort Way, India, India, it is a step that allows it to reduce the import of some trucks from Canada and Mexico.
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