Puncture tariffs press the profit, market shares only through discounts – diepresse.com
The US tariffs tear a hole in Ford’s balance. As the group reacts to this, the entire industry could change.
The US authorsee ford calculates with a billion -dollar pollution from President Donald Trump’s import tariffs. The taxes on vehicles and auto parts introduced to the USA are likely to press the adjusted operational profit this year by around $ 1.5 billion, as Ford announced. With reference to the uncertainty about further development, the group no longer dares for forecasts. Trump had imposed tariffs from 25 percent on imported cars and components.
At the same time, there are some exceptions in accordance with trade agreements with Mexico and Canada as well as a transition phase with easier for companies with production in the USA. US carmakers had warned of negative consequences of tariffs for months. Industry observers also expect price increases.
« Huge numbers »
Actually, the tariff Ford is expected to cost $ 2.5 billion, as CFO Sherry House said. But the group assumes that they can compensate for about one billion of them with various measures. Both are « huge numbers, » complained Ford boss Jim Farley.
Ford is now looking for quick paths to expand supplies from the USA. The group also fears disorders in the global supply chains because of the consequences of the tariffs. At the same time, US consumers have preferred car purchase in the past few weeks to advance the tariffs. In this situation, Ford picked up a discount campaign and was able to win market shares.
Less sales and profit
In the past quarter, sales fell by five percent to $ 40.7 billion in the past quarter. The bottom line was that profit dropped to $ 471 million from $ 1.33 billion a year ago. Above all, the trigger was the slump in the operational profit of the combustion division of $ 901 million a year earlier to $ 96 million. Ford referred to an expected decline in the number of quantities and less favorable exchange rates.
In the second money bringer, the commercial vehicles, the operational result fell by 56 percent to $ 1.3 billion compared to the previous year. According to Ford, this went back to a scheduled production stop. In electric cars, Ford reduced the operational loss to $ 849 million from a good $ 1.3 billion a year ago. (APA/dpa)
