By coinnews 
00:00 Speaker A
The big question, of course, when it comes to all these tariffs is how exactly will they affect the auto makers differently, who will be more affected, less affected when they go into effect, as expected next week. Well, Bank of America Global Research, using some data from Wards, kind of came up with a breakdown of how much of each automakers US sales are from cars that are made in America. So here’s a breakdown here. Bear with me. I’m going to go through here one by one. So Tesla, Rivian, and Lucid, all three of those effectively make all of their vehicles in the US. Obviously, Tesla sells a lot more cars than Rivian and Lucid, but, you know, even though Elon Musk said in a tweet that yes, we will be affected by these tariffs, perhaps on the margin by some of the parts that they might be importing. By and large, the whole cars are assembled here in the United States. Then you have Ford here. The green line is made in the USA. Then you’ve got Canada and Mexico here in pink, because obviously there could be a tariff hit related to those as well, and the rest of the world in blue. Stellantis here, you get a little bit more made outside of the US, and then General Motors, a little bit more sort of more 50/50 US and outside of US. That’s also relevant because General Motors, if you saw how the stocks did in today’s session, was hit much more than shares of Ford. But of course there are a lot of other auto makers here. So just wanted to quickly scan through the rest of them here. A lot of the Asian and European auto makers here, you’ve got Honda, Subaru, Toyota, BMW, Renault Nissan and Daimler, all of them sort of at 50/50 or thereabout. So these also could be relatively heavily tariffed if indeed all of this comes to pass. You’ve got Hyundai on here. Of course, Hyundai’s proportion is going to change, at least over the next few years if it indeed invests that $20 billion on building out production in the US, as it has pledged to do. VW here, Mazda, and then you’ve got Geely, which it’s not a brand name in the US, but it does make Polestars among other cars. And then you’ve got Tata Motors of India, which again, not a household name, but it makes Jaguars, which are then imported into the US. So those two don’t really make many cars, if at all, uh, in the United States. So that’s something to keep an eye on as well. So that’s sort of the granular automaker by automaker. Of course, earlier, you and I talked to Daniel Roska of Bernstein, and he gave the bigger picture of what the tariff hit is going to be.
04:34 Speaker B
So if we just calculate what is the cost of the tariffs if we would have continued 25 as planned, the cost is $110 billion, or $6,700 per car. So very clearly, this cannot go unmitigated. And so the next step then is to figure out who will raise prices and who will actually pull back volumes in the US market.
05:05 Speaker A
However you slice it, it’s going to be a big deal.