|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Luxury German automakers are in focus as President Trump's evolving tariff policies weigh on Mercedes-Benz (MBG.DE, MBGAF) and Porsche (PAH3.DE). Yahoo Finance Autos Reporter Pras Subramanian outlines what investors need to know.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Video Transcript
00:00 Speaker A
German automakers may be feeling the pressure from President Trump's auto tariffs. For more, bringing in now Yahoo Finance senior autos reporter, Pras Subramanian. Pras.
00:11 Pras Subramanian
Yes, so luxury brands like Mercedes and Porsche are getting getting squeezed here, right? By the 25% sector tariffs on their cars. So, we saw some results coming in for Q2. Mercedes' global sales down 9%, but US sales down 12%. Uh, Porsche sales also down globally, but they're higher in the US. But there's a little caveat. They're basically saying that they had to rely upon, you know, pre-tariff inventory that they already brought in. That that helped boost sales as well as the fact that they ate some of the of the tariff costs with protecting pricing. Uh, so that's kind of a problem. I spoke to Mercedes, too. They asked them about, "What are you guys going to do for the going the rest of the year?" They said, quote, "We recognize the importance of consistency and transparency for our customers, committed to maintaining current Model 20, Model Year 2025 pricing until further notice," meaning they're going to freeze prices for now. And for you, if you order a new car with for a 2025 Model Year new car. "We continue to monitor the situation closely. Are evaluating all options. Will adjust to changing market conditions in the competitive landscape." So what they're saying is that they can't do this forever, right? They can't price protect forever, and it seems like Model Year 2026 will see some changes from pricing point of view. Um, look, they they need a deal. They need a deal like the UK has with the US right now. You know, 10% is what they're what they're what they have. That's that'd be great compared to 25, but it's not perfect either.
02:35 Speaker A
Who's in a worse spot, Pras, Porsche or Mercedes?
02:40 Pras Subramanian
So, with Mercedes, at least they have a factory in Tuscaloosa, Alabama, where they make a lot of their SUVs and a lot of their EVs. Porsche makes everything in Germany and, I think, another plant in Slovenia. That's it. They're known for German engineering and, you know, kind of European handling and things like that. So, to make cars in, let's say, Indiana, it isn't really on brand. So they're kind of in a in a in a tight spot there. BMW, which hasn't released their full data yet, um, big plant in South Carolina where they built all their SUVs where they actually ship them out to other parts of the of the world.
03:22 Speaker A
All right, Pras. Thank you very appreciate it. Related Videos
04:19
How foreign automakers are adapting to Trump's tariff landscape
Yahoo Finance Video • yesterday 04:32
Gambling sector's 'uproar' over Trump's tax bill is 'overblown'
Yahoo Finance Video • 11 hours ago 01:09
Boeing jet deliveries, Circle & Datadog Sell ratings
Yahoo Finance Video • yesterday 01:00
Nvidia hits $4T, Microsoft upgraded, Hims & Hers in Canada
Yahoo Finance Video • 6 hours ago
View Comments |
|
**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
By Christina Amann and Victoria Waldersee
BERLIN (Reuters) - European carmakers are trying to work out how much their prices might have to rise in response to looming U.S. import tariffs, industry sources said, fearing any first-movers could risk a backlash from U.S. President Donald Trump.
The United States late on Wednesday announced 25% duties on imports of finished cars and certain components from April 3, dashing hopes for lower rates or exemptions after several short-term policy changes suggested there might be wiggle room.
Export-oriented car companies in Europe, most notably Germany's major automakers, are heavily exposed, with few options on how to respond in the near-term other than smaller discounts and price increases.
"Nobody can afford not to pass on the tariffs," said a source at a European automaker, adding there was a waiting game around who would be the first to raise prices.
"Nobody will take a stand in the coming months for fear of Trump's revenge."
These deliberations add to the challenges facing carmakers already struggling with lacklustre demand, high labour costs and stiff competition from Chinese rivals.
Ferrari was the first brand to declare that it would raise prices by up to 10% on cars imported into the U.S. after April 2.
French supplier Valeo also said it would have no choice but to raise prices if tariffs on autos parts - looming from May 3 - came into effect.
But most auto industry executives are reluctant to reveal their plans, fearing retribution from the U.S. president who has made clear that his aim is for carmakers not to raise prices, but to move production to the United States, three auto industry sources, who declined to be identified because of the sensitivity of the matter, said.
Volkswagen, Porsche AG, BMW, and Mercedes-Benz all declined to comment when asked about price increases as a result of tariffs.
Among the German automakers, Porsche and Volkswagen's Audi - two brands with no U.S. production - have both said recently they would assess the option of price increases to mitigate tariff risks.
BMW has previously said it would keep the price of its 3 Series, one of its most popular U.S. models which is being built in Mexico and Germany, unchanged until May.
UBS analysts see a risk of at least a 10-20% hit to earnings per share at Germany's carmakers due to the U.S. tariffs on EU imports, an analysis which already factors in some mitigating price action where possible.
Carmakers like Porsche and Ferrari will have an easier time passing through some of the tariff costs for more unique models like the Porsche 911, analyst Daniel Schwarz of Stifel Research said.
Story Continues
For Porsche's SUVs this would be more difficult because rival models, including the Mercedes GLE and BMW X5 are produced in the United States, he added.
Another auto industry source said: "Everyone has plans up their sleeve, you just have to decide when you play which cards. It's a poker game."
(Reporting by Christina Amann and Victoria Waldersee; Additional reporting by Ilona Wissenbach; Writing by Christoph Steitz and Victoria Waldersee. Editing by Jane Merriman) |
