The Nissan’s SMyrna vehicle installation plant opened in 1983, marking the first large car -a prize in Tennessee. The plant employs more than 7,000 people produce various vehicles, including EV and Rogue Crossover.
Michael Wayland / Cnbc
Detroit – A third of the vehicle production in North America could be reduced by next week as a result 25% of President Donald Trump’s tariff In Mexico and Canada, while car manufacturers are trying to alleviate increased costs, and customers stay on buying new cars and trucks.
This lost production would equalize with approximately 20,000 units a day, according to the new analysis of prominent data and forecasts by S&P Global Mobility.
The influence of production, as well as the ability to release, would continue to grow if tariffs, which Trump implemented TuesdayThey do not change or do not abolish, the agency noted.
“We have a new dawn, to some extent. This is a significant move,” said Stephanie Brinley, an associate director at Autointelligence at S&P Global Mobility, during Webinar Automotive Press Association.
“I think we’ll see some plants fall shifts. We’ll see some plants just slowed down rates,” Brinley said. »Will not necessarily be consistent [automakers]. It will be very much what they need and how much they need. “
S&P GLOBAL MOBILITY reports 25 car manufacturers on average produce 63,900 light passenger vehicles in North America a day. Most of these, approximately 65%, were gathered in the US, followed by 27% in Mexico and 8% in Canada.
US President Donald Trump signs an executive order at an oval office in the White House 25 February 2025 in Washington, DC. Trump sent a trade department to open an investigation into potential copper import imports.
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The production of influence will be varied depending on the manufacturer of cars, vehicles and plants. This could mean that the plant is completely in prison or produces less certain vehicles that relies on parts that can travel over the borders repeatedly.
Automobile shares fell more than the wider market on Tuesday as a result of tariffs.
Tariff is a tax on import or foreign goods, brought to the United States. Companies that import goods pay for tariffs, and some experts are afraid to simply transfer all the companies to all additional costs to consumers – increasing the vehicle costs and potentially reduced demand.
Several car manufacturers have refused to comment directly with 25% of tariffs this week, relying on past comments or trade associations to speak on their behalf.
The US Council for Automobic Policy Representation Ford engine,, General Motors and Stellantis -This all this is strongly influenced by such tariffs that vehicles and parts that meet the strict demands of the domestic and regional content of the United States-Moxico-Kanada, or Usmac, should be exempted from the increase in tariffs.
“Our American car manufacturers, who have invested billions in the United States to meet these demands, should not have their competitiveness subordinate to tariffs that will increase the cost of building vehicles in the United States and squeezed investments in US workforce, while our competitors outside North America benefit from a simple approach to our home market,” said former Matts President, President, President, President, President, President, President, President, President Mass. Statement on Monday night.
GM, Ford and Stellantis stock
Nissan engine Late on Monday he said: “The sustainable tariff of this size will have a negative impact on car manufacturers, and we estimate that we will take measures accordingly. We hope that the parties will agree for a productive path forward.”
Several car executives and analysts on Wall Street have described the tariffs as insertion of unnecessary chaos into the automotive industry.
“President Trump has talked a lot about the reinforcement of our American auto industry, bringing more production here, more innovations in the US, and if his administration can achieve this, it would be one of … the most amazing achievements,” Ford CEO Said Jim Farley last month During Wolfe Research Investor Conference. “So far, what we see is a lot of costs and a lot of chaos.”
Tariff’s supporters claimed that they were a way to help directly trade in inequality with countries, while potentially served as an impact on negotiating with USMac, which Trump originally negotiated during his first term as president.
Car manufacturers were relatively quite quite about the financial influences they expect to make such tariffs, however GM CEO Mary Barra Last month, he said that a car manufacturer believes he could alleviate the short -term influences between 30% and 50% of additional costs “without implementing any capital.”
It is difficult to calculate the overall influence that the tariffs will have on the production of vehicles in North America. Parts can go between countries’ borders several times in different shapes before being built into a vehicle.
S&P GLOBAL MOBILITY reports an average of 20,000 parts in the vehicle when it was demolished on nuts and screws. Parts can come from anywhere between 50 and 120 countries
For example, the Ford F-1450 is exclusively assembled in America but has about 2,700 major parts that can be charged, which exclude many small pieces, according to CareSoft, an engineering comparison and consulting company.
These parts come from 24 different countries, according to Livonia, in Michigan, based in Michigan.
