Porsche and Aston Martin hike US prices to pass on cost of Trump tariffs

TimesLIVE

5 days ago

US tariffs have pummelled global carmakers, forcing companies such as GM, Volkswagen, Hyundai and Mercedes-Benz to book billions of dollars of losses, issue profit warnings, slash forecasts and raise prices.
Japanese carmaker Nissan reported a $535m (R9.69bn) loss on Wednesday, hit by US tariffs, restructuring and lower sales volumes.
British sports car maker Aston Martin said it made incremental price increases in the US since last month, issuing a profit warning citing a hit from import tariffs and prolonged suppressed Asian demand.
While bigger carmakers have so far held off, other sectors have seen price hikes as companies have looked to pass on the additional cost of tariffs.
Analysts said larger carmakers could also increase prices in the second half of the year.
'Into the second half we are looking to gain additional visibility with regards to the ability of Mercedes-Benz and the rest of the premium original equipment manufacturers to increase prices in the US to offset the impact of tariffs,' JPMorgan said in a note.
European carmakers are also getting less optimistic that they could seal extra sector-specific tariff reductions, resigned to dealing with the 15% rate.
Mercedes CEO Ola Källenius told analysts on Wednesday the group was assuming tariffs would remain at 15%, throwing cold water on hopes companies may be able to negotiate individual deals.
'For all intents and purposes that global deal for now is it,' said Källenius, also president of Europe car lobby ACEA. Any side deals were 'very uncertain'.
Volkswagen said last week it was hoping investment commitments could help it negotiate lower US tariffs. But Blume, also head of VW, suggested there would not be a separate US deal for the automotive sector.
'I agree with Ola Källenius' assessment that there will not be a separate automotive deal,' Blume said.