The Fitch rating agency said Wednesday that “car manufacturers increase their prices worldwide to compensate for US customs tariffs,” which have affected imported vehicles in the United States since the beginning of April.
“Some car manufacturers may have difficulty increasing their prices to cover customs tasks by 25% and will have to make painful adjustments to their production and sale plans,” the rating agency wrote also on Wednesday. What could, in some cases, “not be enough,” and could lead to “margins are considerably reduced by 2025,” Fitch added.
Heavy customs surcharges of 25% have been penalizing imports of spare parts for cars and cars in the United States since the beginning of April. “Although we expected that the direct consequences of customs tasks vary according to cars manufacturers,” particularly according to the place where its production is, no company will be completely immune to a decrease in consumer confidence and a decrease in demand in the sector, “said Fitch.
Costs approved by suppliers in manufacturers
On Tuesday, the optomility of the supplier of French automotive equipment (former plastic omnium) said he had not noticed a fall in the volume of production of car manufacturers since Donald Trump’s announcement on customs tariffs in imported vehicles in the United States. If the option has assured that “what (sold) in the United States was (manufactured) in the United States,” recalled that certain components, such as screens, came from China and, therefore, are subject to strong customs duties.
Fitch said Wednesday that “many suppliers try to approve the costs of customs tariffs in car manufacturers, which will have to absorb most of price increases.”
In mid -April, the president of Stellantis (Peugeot, Fiat, Chrysler) John Elkann considered that “the US and European car industries were in danger” due to the “painful customs of customs” and “excessively rigid regulations”, while “China is in another career.”
Source: BFM TV
