Azusa Kawakami’s Post

I recently had the opportunity to speak with Azusa Kawakami at Nikkei about the potential impacts of the recent U.S. election on the automotive industry. Over the past decade, the industry has faced significant disruptions, including the rise of electric vehicles, the challenges of COVID-19, and the advancements in Software Defined Vehicles. The introduction of potential tariffs adds another layer of complexity, requiring suppliers and manufacturers to carefully manage costs, operations, capacity utilization, and supply chain strategies to mitigate or offset these impacts. #EV #Automotive #tariffs

With Donald Trump hinting at renewed tariffs on imports, manufacturers across industries, especially automotive, may be facing significant changes. A proposed 60% tariff on Chinese imports and potential tariffs on Mexico and the EU could reshape supply chains and raise prices. In the automotive sector, companies are already grappling with rising costs of electric vehicle development and the pressure of competitive, affordable EVs from China. New tariffs could lead carmakers to shift more production to the US, increasing operational costs that may ultimately trickle down to consumers. 🤔 #tariffs #globaltrade #manufacturing #automotivendustry #economicpolicy #trump #election #automotive #autoindustry #automobiles

President-elect Donald Trump’s proposal to impose tariffs of up to 25% on goods from Mexico and Canada could disrupt the U.S. auto industry, increasing new vehicle prices by an average of $3,000 and impacting global supply chains. Automakers like General Motors, Ford Motor Company, and Stellantis, which rely heavily on imported vehicles and parts, face significant challenges, with shares already tumbling in response to the announcement.  The proposed tariffs target $97 billion in auto parts and 4 million vehicles imported annually from Canada and Mexico. Analysts warn these measures could destabilize the industry, already grappling with affordability issues as average car prices near $50,000. Companies including Stellantis and GM import more than 50% of trucks sold in the U.S. from Mexico and Canada, highlighting their vulnerability.  Trump's strategy, aimed at boosting domestic manufacturing and jobs, contrasts with industry realities. Transitioning production back to the U.S. would require years, undermining immediate employment benefits. Meanwhile, Mexican officials, led by President Claudia Sheinbaum, have suggested possible retaliatory tariffs, emphasizing the interdependence of U.S.-Mexico trade.  Stellantis CEO Carlos Tavares has sought to reduce costs through manufacturing in lower-cost countries like Mexico, particularly as EV production expenses rise. However, Trump's tariffs threaten this approach, complicating long-term strategies to enhance EV affordability and competitiveness.  Automakers are preparing contingency plans, balancing potential policy shifts with market realities. Executives from Ford and Stellantis have emphasized flexibility, highlighting the uncertain timeline and scope of these policies. Analysts caution that investor confidence depends on whether Trump follows through, as retaliation and market disruptions loom large over an already strained industry.  https://lnkd.in/ensaC8KP #automotiveindustry #electricvehicles #china #europe #leadership Tesla BYD MG Motor Europe

📢 Trade Tariffs and German Carmakers: What's Next? Donald Trump's proposed 10% baseline tariff on all imported goods has brought the spotlight back to protectionist policies, and the implications are significant for German automakers like Volkswagen, BMW, and Mercedes-Benz. As these companies rely on the U.S. market, higher tariffs could lead to increased vehicle prices, disrupted supply chains, and potentially spur companies to consider U.S.-based production—a costly and complex move. Not only is the automotive sector at risk, but Germany's political landscape adds further uncertainty. With Olaf Scholz’s coalition government recently collapsed, the EU’s ability to negotiate on behalf of its automotive industry faces challenges. 💡Questions to consider: How will these tariffs reshape the relationship between U.S. consumers and German automotive brands? Could this spark a new era of global supply chain restructuring for auto manufacturers? How might this impact jobs and investment both in the U.S. and Europe? Your thoughts? #TradeTariffs #AutomotiveIndustry #GlobalEconomy #GermanCarmakers #USPolicy #SupplyChain https://lnkd.in/e7ii3JdT

The automotive industry faces numerous challenges, and the imposition of Chinese tariffs is one of the most significant. These tariffs disrupt supply chains, prompt shifts in manufacturing locations, necessitate cost management strategies and potentially alter the global automotive market in the long term. Understanding and adapting to these changes is crucial for manufacturers aiming to thrive in 2024 and beyond. https://lnkd.in/d-rpk78K

Trade tariffs: how protectionist US policies will hit German carmakers The US president-elect’s promise of imposing baseline tariffs of 10% on all goods imports has already sent shivers around the world’s manufacturers. Few industries are more exposed than Germany’s carmakers: the share prices of Volkswagen, BMW, Mercedes-Benz and Porsche have dropped by between 4% and 7% since it became clear on Wednesday morning that Trump would win the US presidency. The European car industry is contending with a range of headwinds, pushing market valuations of top manufacturers such as BMW AG, Mercedes-Benz AG, Porsche, Stellantis, Renault, and Volkswagen at or near record lows. These companies are already facing significant challenges, from weakening demand in key markets such as China to intensifying competition in the electric vehicle (EV) space, which has eroded investor confidence. (Also see: https://lnkd.in/eCZP8wiS) (And: https://lnkd.in/eSFuzmWM)

🚗 Potential Impact of Proposed U.S. Tariffs on European Automakers 🌐 President-elect Donald Trump's plan to impose a 25% tariff on imports from Mexico could significantly affect European automakers like Volkswagen and Stellantis. These companies rely on Mexican plants to supply the U.S. market, benefiting from low-cost labor and proximity. The proposed tariffs threaten to disrupt established supply chains, potentially forcing automakers to reconsider their production strategies and possibly relocate operations to the U.S., despite associated costs and challenges. #AutomotiveIndustry #TradePolicy #Tariffs #SupplyChain #Volkswagen #Stellantis

Reflecting on the recent news of the Biden Administration's 100% tariff on Chinese automobile imports to the US, it's important to consider the impact of protectionist policies. Harley-Davidson's experience during the 1980s is a great example of how tariffs can be helpful when implemented correctly. The gradually reduced 5-year tariff protection period implemented gave Harley-Davidson time to retool and restructure, ultimately making the company more competitive. However, the key point here is that there was a defined tariff ramp-down period. Without a publicly disclosed end point to the tariff, companies become disincentivized to innovate and shock and awe-type effects can occur, which is bad for domestic companies and taxpayers. It's critical that such a protectionist policy has a defined end point. Companies and shareholders alike desire predictability and defined rules to operate within, not chaos. The blueprint and timeline of the tariff period should be communicated so various levels of government and companies can prepare, innovate, and retrain people for new jobs. Tweaks and adjustments may need to be made along the way, to refine the plan and minimize the risk of catastrophic boom-bust cycles. Like it or not, Chinese electric vehicles will make it to North America, it is just a matter of time! So, what's the point of a four times tariff increase on Chinese autos, other than political posturing? At the current 25% tariff, we don't have any Chinese EVs in North America so how is a 100% tariff better? Without a defined ramp-down period, is this just sabre-rattling to shore up votes in key rust belt states like Michigan before the November election? What do you think? #ElectricVehicles #USMCA #ChinaTrade #ImportExport #What_would_Art_Vandelay_do? https://lnkd.in/dTQCx9_i

Trump’s Proposed 25% Tariff on Mexico and Canada Imports Sparks Industry Concern President-elect Donald Trump’s proposed 25% tariff on imports from Mexico and Canada is creating shockwaves in the U.S. automotive industry. The policy could disrupt cross-border supply chains, drive up vehicle costs, and directly impact automakers like General Motors, Ford, and Stellantis. General Motors, the largest exporter of vehicles from Mexico to the U.S., would face significant challenges, particularly with models like the Chevy Silverado, GMC Sierra, and its Mexican-manufactured electric vehicles (EVs) like the Equinox and Blazer SUVs. Adding to the pressure is Trump’s plan to cancel the $7,500 federal EV subsidy, further complicating the EV market. Analysts predict these tariffs could raise vehicle prices for consumers, with costs rippling through the industry. Automakers might absorb these increases, reducing profitability, or pass them on to buyers. Additionally, Mexico and Canada, which supply over 50% of U.S. auto parts, are critical to keeping domestic production costs stable. While Trump frames the tariffs as a strategy to address immigration and drug trafficking, critics argue the move could harm economies on both sides of the border. Mexican President Claudia Sheinbaum has voiced strong opposition, warning of widespread economic repercussions. As uncertainty looms, automakers are bracing for supply chain disruptions and strategizing how to navigate these shifting trade policies. Could these tariffs reshape the U.S. automotive industry? #AutoIndustry #TradeTariffs #USMexicoCanada #GeneralMotors #ElectricVehicles #SupplyChain #Ford #Stellantis #Manufacturing #TrumpPolicies #GlobalEconomy #EVMarket

MetalMiner: Automotive MMI: #AutomotiveIndustry Could Face Headwinds from Germany and Incoming Tariffs The November Automotive MMI (Monthly #Metals Index) found slightly more upward momentum than the prior month. While the index remained sideways, price action rose by 2.33%. That said, the US automotive market could witness headwinds from a combination of factors. First, Donald Trump`s win in the US election could mean incoming tariffs that will impact the overall automotive market. Secondly, a recent report highlighted a poll concluding that 37% of German businesses said they will cut production or move abroad, a 31% increase compared to 2023. This could have ramifications for vehicles sourced from Germany, such as Volkswagen, BMW, Audi, Mercedes-Benz and other German-based automobile manufacturers. Receive indispensable updates on metal prices, shifts in the US automotive market and potential incoming #tariffs, empowering your company to make informed purchasing decisions. Opt into MetalMiner’s free weekly newsletter. Trump Victory and Potential Tariffs in 2025 The US automotive industry seems poised for changes following President-elect Donald Trump’s victory. His proposed policies, particularly concerning tariffs, are expected to...Continue reading: https://lnkd.in/gB_E_nhX #procurement #manufacturing #industrialmetals