Donald Trump’s import tariffs hit the US car giant Ford even harder than previously expected.
For the current year, the group is now expecting a load of $ 2 billion (1.75 billion euros) from interest and taxes. Three months ago, Ford Motor had assumed a negative effect of $ 1.5 billion on this basis. In the past quarter alone, the tariff Ford cost around $ 800 million. The US President had imposed tariffs of up to 25 percent for introduced cars and components.
Ford produces around 80 percent of vehicles in the United States, emphasized CEO Jim Farley at the US broadcaster CNBC. “But we import parts from all over the world.” For the basic materials steel and aluminum, Trump doubled the import duties to 50 percent. In the Ford forecast, cost reductions of around one billion dollars are already taken into account, which are intended to cushion the customs load.
The US car industry also criticizes that Japanese rivals such as Toyota Motor with a 15 percent customs have an advantage compared to local manufacturers. Ford try to move the White House to relieve the US car maker, said Farley in a conference call with analysts. “We are in contact every day.”
Chinese as a competition
Due to the tariffs and differences in environmental requirements, Europe, North America and Asia become very different from Ford for a long time. “I think that’s a pretty fundamental change,” said Farley.
In the United States, the Trump government ensured a new industry situation with the abolition of the strict exhaust gas rules in California, which provides the sound for the whole country. Ford now lowered the expenses for CO2 emissions rights by around $ 1.5 billion. The trade in the CO2 certificates has so far been an important source of winning for the Electric car-T manufacturer Tesla. Ford now wants to invest more in combustion drives again.
Meanwhile, Ford sees the niche for pure electric drives in the USA in small cars for the city and commercial vehicles. For the next generation of electric cars, the US group sees Chinese manufacturers as the most important competition.
Loss of loss
The bottom line was that Ford finished the past quarter with a loss of $ 36 million – after $ 1.8 billion a year earlier. Meanwhile, sales grew by four percent to $ 1.185 billion.
The Ford share temporarily gains $ 11.01 at the NYSE.
Dearborn (dpa-Afx)
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