00:00 Speaker A
America’s Big Three automakers, GM, Ford, and Stellantis are headed toward a bumpy ride, a new report finding Detroit’s Big Three to be the most exposed to President Trump’s auto tariffs. Yahoo Finance’s senior reporter, Pras Subramanian, joins us now with more. Pras.
00:18 Pras Subramanian
Yeah, I was a little surprised to see this information from Jato Dynamics talking about how it’s actually the Big Three automakers, from a point of view, from a global sales point of view, a high percentage of their automobiles are actually sold in the US that are actually from imported areas, more so than the Japanese Big Three of Toyota, Honda, and Nissan, and also more so than the German Big Three of Volkswagen, BMW, and Mercedes. A number of reasons why, of course, US automakers are more concentrated here with building their selling cars here. And evidently, they sell more cars from import areas in the US market, whereas companies like Honda and Nissan, they build a lot of cars here too. They have a lot of factories here. They have a broader global footprint of other markets, China, wherever else, more so than GM and Ford. Stellantis, they have more of an international footprint, but still not so much as some of the other bigger guys, as you can see right there. Also, even the German automakers are 6.9% of total global sales are imports sold in the US, right? Because they sell domestically in their own markets, but also internationally across a number of other markets, if that makes sense, right? So that’s sort of what we’re seeing. So it’s ironic that we’re seeing that the auto tariffs on foreign imports potentially hurting the Big Three more so than other large multinational, multi-country organizations.
02:44 Speaker A
Yeah, ironic. And you know, and of course these automakers, the CEOs, have been somewhat, the domestic automakers have been some of the most vocal folks who reportedly tried to lobby the White House to get them to change, but to no avail.
03:16 Pras Subramanian
Not yet. Yeah, no avail, not yet. I mean, look, you’re talking about GM with plenty of factories in Mexico and Canada. They build a lot of their trucks in Mexico, actually. That’s a big problem for them if they can’t get that USMCA exemption in some sense from like the full amount of 25% to whatever they knock it down based on parts origination. So that’s sort of the big picture or the big question here is how can they adjust that and make it viable for them.
04:00 Speaker A
Yeah, it’s a big question. All right. Thanks, Pras.