Latest news with #NorthAmerica-bound
Asahi Shimbun
18-06-2025
- Automotive
- Asahi Shimbun
Long-term effects of Trump tariffs darken outlook of automakers
Vehicles for overseas markets are loaded onto a carrier at a Nissan Motor Co. plant in Yokosuka, Kanagawa Prefecture, in May. (Asahi Shimbun file photo) The automotive industry is expected to face a prolonged impact of steep U.S. tariffs on vehicles as Tokyo and Washington failed to reach a middle ground on trade issues on the sidelines of the Group of Seven summit. Prime Minister Shigeru Ishiba and U.S. President Donald Trump agreed to continue negotiations at a meeting in Kananaskis, Canada, on June 16, but Ishiba told reporters that it is difficult to say when an agreement is expected. After Trump announced plans to impose additional 25-percent tariffs on vehicles, automakers expanded production and exports before the duties took effect to avoid the increasing prices in the U.S. market. 'We have an inventory for 100 days (in North America),' Tatsuo Nakamura, executive vice president of Mitsubishi Motors Corp., said at a news conference in May. 'We want to keep prices unchanged.' Still, automakers will have to either raise prices or shoulder tariffs and squeeze profits when tariff-free inventories run out. Toyota Motor Corp. has said it will not pass the tariffs straight onto consumers, but officials said the company has been considering what to do based on individual vehicle models as they come up for annual price revisions. Bank of Japan statistics suggest that automakers have lowered prices of export models for the near term to absorb the U.S. tariffs and maintain prices. According to the corporate goods price index for May, which was released on June 11, export prices on the contract currency basis for North America-bound cars plunged 18.9 percent from a year earlier to 87.3, as compared to the 2020 average of 100. Toyota has said its operating profits will tumble by 180 billion yen ($1.25 billion) in April and May alone if the tariffs remain in place. This would translate into about 1 trillion yen evaporating on an annual basis. Honda Motor Co.'s operating profits are expected to fall by 650 billion yen in fiscal 2025, including impacts on motorcycles and other products, while Nissan Motor Co.'s operating profits are likely to drop by up to 450 billion yen. Industry officials expect an early conclusion of negotiations with the United States, but many emphasize that Japan must prioritize removing the additional tariffs on vehicles over jumping to a rough-and-ready decision. Trump has not indicated any plans to eliminate the tariffs. The U.S. president even told reporters on June 12 that he may raise them in the near future. If the tariffs continue, automakers may choose to crank up production in the United States over the mid- to long-term. Industry officials are concerned that supply chains may also migrate to the United States, leading to a hollowing out of the automotive industry. Takashi Kayamoto, chairman of the Japan Auto Parts Industries Association and chairman of spring manufacturer NHK Spring Co., said in May that he is terrified of the prospect of a decline in Japan's production technologies and manufacturing capabilities. (This article was written by Akihiro Nishiyama and Kaname Ohira.)
Yahoo
13-06-2025
- Business
- Yahoo
HP responds quickly to tariff shock
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. HP sped up plans to shift manufacturing of North America-bound PCs and printers outside of China to offset higher-than-expected tariffs, President and CEO Enrique Lores said in a May 28 earnings call. The computer maker increased production in India, Mexico, Thailand, Vietnam and the U.S. and expects to bypass China for nearly all U.S. imports by the end of June, Lores said. "In Q2, we acted quickly to address tariff-related headwinds, taking decisive steps like accelerating our manufacturing rebalancing, redesigning our logistics network, shifting sourcing and qualifying new product configurations," the CEO said. In Q1 2025, Lores set September as the target date for having less than 10% of HP's products sold in North America made in China. The Trump administration's April tariffs triggered a significant acceleration of the plan. 'While we plan for a range of scenarios in the quarter and we worked aggressively to respond to changes in the regulatory trade environment, the tariff increases announced in April were higher than expected,' CFO Karen Parkhill said on the earnings call. HP adjusted its logistics networks and supply chain during the quarter, per Lores. For example, the company avoided tariffs in Canada and Latin America by removing the U.S. as a distribution hub. HP's strategy for offsetting tariffs also included raising prices on PCs and printers, which it saw other market participants and competitors doing as well, Lores said. Tariffs implemented by the Trump administration during Q1 had a significant financial impact on HP, executives said during the earnings call. The levies led to reduced non-GAAP earnings and operating profit, as well as a dip in operating margin for PCs. "Personal Systems operating margin came in below our guidance largely due to higher tariffs that were not fully offset by our actions in the quarter," Lores said. "We expect to successfully mitigate this cost and return to our long-term target range of 5% to 7% next quarter." This story was first published in our Procurement Weekly newsletter. Sign up here. Recommended Reading Subaru weighs options to curtail a potential $2.5B tariff hit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
13-06-2025
- Business
- Business Standard
Crisis-hit Air India reroutes or recalls 16 flights as Iran closes airspace
A day after the fatal crash of flight AI171 in Ahmedabad, Air India faced another operational jolt on Friday when it had to divert or recall 16 international flights due to the sudden closure of Iranian airspace. Israel launched a large-scale military operation called Rising Lion on key nuclear and military sites in Iran, prompting Tehran to shut down its skies over security concerns. Iraq and Israel have also shut their airspaces. With Pakistan's airspace already shut following India's anti-terror Operation Sindoor last month, Air India will now be forced to take even longer detours on several of its Europe- and North America-bound flights. These extended flight paths translate to increased fuel burn, higher operational costs, and more complex scheduling for the airline already reeling from the Ahmedabad tragedy. Air India, citing passenger safety, confirmed on X that the Iranian airspace restrictions disrupted several transatlantic and European routes. Among the affected services was AI130 from London Heathrow to Mumbai, which was diverted to Vienna. AI102 from New York to Delhi landed in Sharjah, while AI116 from New York to Mumbai was redirected to Jeddah. London-Delhi flight AI2018 had to land in Mumbai, and AI106 from Newark to Delhi was diverted to Vienna. Several outbound services from India also faced disruptions. AI129 from Mumbai to London and AI119 from Mumbai to New York were both turned back to Mumbai. AI103 from Delhi to Washington and AI189 from Delhi to Toronto returned to their origin points. Meanwhile, AI188 from Vancouver to Delhi was diverted to Jeddah, and AI101 from Delhi to New York was rerouted to either Frankfurt or Milan. Air India said its AI126 from Chicago to Delhi landed in Jeddah, and AI132 from London to Bengaluru had to be diverted to Sharjah. Flights AI2016 and AI104, both on the London/Washington-Delhi sector, were rerouted to Vienna, while AI190 from Toronto to Delhi was diverted to Frankfurt. The airline said it regrets the inconvenience caused to passengers and is offering complimentary rescheduling or refunds to those affected. 'Alternative arrangements are being made to fly passengers to their destinations,' the airline added, noting that it is also providing accommodation where needed to minimise disruption. The disruption of Air India's international flight services due to rising tensions in West Asia came just a day after the airline suffered one of the worst aviation disasters in recent history. On Thursday afternoon, London-bound Air India flight AI-171, a Boeing 787 Dreamliner, crashed within seconds of taking off from Ahmedabad's Sardar Vallabhbhai Patel International Airport. The aircraft, registered as VT-ANB, burst into flames shortly after impact, sending shockwaves across the globe. It was carrying 242 people, including two pilots and 10 cabin crew members. Only one out of 242 people survived.
The Star
02-06-2025
- Automotive
- The Star
Japan factory declines slow in May but tariff worries persist, PMI shows
Workers assemble Honda Motor Co. North America-bound Fit vehicles on the production line at the company's Suzuka factory in Suzuka, Mie, Japan, on Tuesday, Aug. 23, 2016. Photographer: Kiyoshi Ota/Bloomberg TOKYO: Japan's factory activity shrank at the slowest pace in five months in May as the decline in new orders eased, but worries over U.S. tariffs have dampened the recovery from an almost year-long contraction, a private-sector survey showed on Monday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 49.4 in May from 48.7 in April, marking the 11th consecutive month of staying below the 50.0-line that indicates contraction. Still, the reading was higher than the flash figure of 49.0 and the highest so far this year. "Manufacturing conditions in Japan moved closer to stabilisation in May, according to latest PMI data, with companies signalling a softer decline in sales and improved jobs growth," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Among sub-indexes, new orders fell for the 24th straight month, with manufacturers citing U.S. tariffs and increased client hesitancy as factors behind subdued demand conditions. Factory output also contracted for a ninth consecutive month, at a quicker pace than in April, the survey showed. To mitigate the impact of the U.S. tariffs on cars and other manufacturing sectors, which are the backbone of the Japanese economy, Tokyo has held four rounds of trade talks with Washington and plans a fiscal package to support households and businesses. In a positive sign, input cost inflation eased to a 14-month low in May, while output price inflation slowed to the softest in nearly four years. Employment increased for the sixth month in a row as firms filled vacancies and prepared for anticipated production increases, according to the survey. Business confidence on future output strengthened from April's near five-year low, with firms citing expectations of stronger market demand particularly in the semiconductor industry. However, some expressed concerns over U.S. tariffs, inflation and Japan's declining population as potential headwinds to growth, the survey showed. - Reuters
Yahoo
14-05-2025
- Business
- Yahoo
Passenger numbers up at Germany's Frankfurt Airport in April
Passenger numbers at Germany's Frankfurt Airport rose by 4.8% to 5.34 million in April year-over-year, the operator said on Tuesday. Operator Fraport said the rise was fuelled by the Easter holiday, a period many Germans traditionally use for an early getaway. The number of passengers was still only 85.2% of the levels seen in April 2019, before the coronavirus pandemic. The highest number of travellers was recorded on April 11, with 198,000 passengers passing through Germany's biggest airport. European traffic was particularly dynamic in April, with passenger growth of 6.8%. Domestic flights to and from Frankfurt also saw a 3.3% increase in passengers compared to the same month last year. The number of North America-bound travellers fell by 1.9% despite the Easter holidays.
