Latest news with #RachelMore
Mint
9 hours ago
- Automotive
- Mint
Porsche, Aston Martin hike US prices as hopes for tariff sweeteners fade
Porsche, Aston Martin flag U.S. price hikes US-EU trade deal imposes 15% tariffs, averts larger trade war Mercedes, Porsche cool hopes of auto specific trade deals By Rachel More, Alessandro Parodi and Shashwat Awasthi BERLIN, - European luxury carmakers including Porsche and Aston Martin have surged ahead with U.S. price hikes, which could point the way for bigger brands to follow in their wake as companies pass on the cost of tariffs. The United States and Europe reached a trade deal that will see EU-made cars hit with a 15% tariff from August, lower than once threatened but far higher than the 2.5% rate before U.S. President Donald Trump launched his trade offensive this year. On Wednesday, Volkswagen's luxury brand Porsche said it had raised U.S. prices by between 2.3% and 3.6% in July, with no plans for now to establish a U.S. production presence - a move that would let it avoid the levies. "This is not a storm that will pass," Porsche CEO Oliver Blume said after the company cut its full-year profit target and flagged a $462 million hit from tariffs in the first half. "We continue to face significant challenges around the world." U.S. tariffs have pummelled global automakers, 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. Ford Motor, which boasts domestic production for around 80% of the vehicles it sells in the U.S., said on Wednesday that second-quarter results took an $800 million hit from tariffs and higher U.S. levies would likely cost more than expected for the year. Japanese carmaker Nissan reported a $535 million quarterly loss on Wednesday, impacted by U.S. tariffs, restructuring and lower sales volumes. British sports-car maker Aston Martin said it had made incremental price increases in the United States since last month, issuing a profit warning based on the U.S. tariffs impact and prolonged suppressed Asian demand. ADDITIONAL COSTS 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 take similar steps in the second half of the year. "Into H2, we are looking to gain additional visibility with regards to the ability of Mercedes-Benz and the rest of the premium OEMs to increase prices in the U.S. in order to offset the impact of tariffs," J.P. Morgan 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 Kaellenius told analysts on Wednesday that 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 Kaellenius, also president of Europe's car lobby ACEA. Any side deals were "very uncertain". Volkswagen had said last week it was hoping investment commitments could help it negotiate lower U.S. tariffs. But Porsche CEO Blume, also head of VW, suggested there would not be a separate U.S. deal for the automotive sector. "I agree with Ola Kaellenius' assessment that there will not be a separate automotive deal," Blume said. This article was generated from an automated news agency feed without modifications to text.
Yahoo
a day ago
- Automotive
- Yahoo
Porsche trims outlook as tariffs add to 'storm' of challenges
By Rachel More BERLIN (Reuters) -Volkswagen's embattled luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with U.S. President Donald Trump and reported a 400-million-euro ($462 million) hit from tariffs in the first half. The burden of tariffs on car imports to the United States only added to Porsche's woes, as it undergoes a costly restructuring while facing weakness in its key market China and a sluggish transition to electric cars. "We continue to face significant challenges around the world. And this is not a storm that will pass," Porsche CEO Oliver Blume said. Taking into account the newly agreed tariff of 15% from August 1, the German carmaker expects group sales this year in the range of 37 to 38 billion euros, in line with its previous forecast, and a return on sales of between 5 and 7%, down from a previously expected 6.5-8.5% range. Countermeasures such as price adjustments are included in that outlook as Porsche seeks to mitigate the damage, the company said. Group figures released last week showed Porsche's operating profit collapsing by 91% year on year in the second quarter, to 154 million euros. In February, Porsche announced an additional 1,900 job cuts over the next four years but said it cannot announce any forced redundancies under a location safeguarding agreement valid until 2030. On Wednesday, Porsche said its management was "resolutely pushing ahead with extensive measures to rescale and recalibrate the company", with negotiations with employee representatives to begin in the second half of the year. In the first half, Porsche booked special expenses for the company's realignment of around 200 million euros and around 500 million euros for battery activities. ($1 = 0.8655 euros) 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
The Star
3 days ago
- Business
- The Star
German army prepares to develop deep-strike drones, Handelsblatt reports
BERLIN (Reuters) -The German armed forces are preparing to develop long-range combat drones capable of striking targets deep in enemy territory, the Handelsblatt newspaper reported on Monday. Three consortia are working on concrete concepts after the Luftwaffe airforce sent a request for deep-strike drones to leading defence companies and startups, the report said. According to the report, Airbus Defence is contributing to the project alongside U.S. startup Kratos, while Germany's Rheinmetall has teamed up with drone specialist Anduril. Munich-based startup Helsing is also involved, the report said. The German defence ministry confirmed preparations for such a project to Handelsblatt, saying that initial talks had taken place but that no formal tender had been issued. The ministry and the companies mentioned did not respond to emailed requests for comment from Reuters. (Writing by Friederike Heine, Editing by Rachel More)
The Star
02-07-2025
- Politics
- The Star
Germany says Russia using media platform Red to sow discontent
BERLIN (Reuters) -Russia is using the online media outlet Red to sow discontent in German society as part of a disinformation campaign waged alongside its war in Ukraine, the foreign ministry in Berlin said on Wednesday. "Red presents itself as a revolutionary platform for independent journalists. However, it has close links with the Russian state media outlet RT," a spokesperson for the foreign ministry told reporters in Berlin. "Today we can confirm that Red is being used by Russia specifically to manipulate information," the spokesperson added. Red is run by Turkish media company AFA Medya, which together with its founder Huseyin Dogru is already the subject of EU sanctions targeting Russia and is accused of "undermining the democratic political process" in Germany. After they were sanctioned, Red announced on May 16 that it was closing down. (Reporting by Rachel More and Miranda MurrayEditing by Madeline Chambers)
The Star
04-06-2025
- General
- The Star
Central Cologne evacuated after discovery of wartime bombs
BERLIN (Reuters) - Thousands of people were being evacuated from central Cologne in western Germany on Wednesday following the discovery of three wartime bombs, in what the city authority called the largest such measure since the end of World War II. An evacuation zone with a radius of 1,000 metres will be cleared from 8am (0600 GMT), impacting around 20,500 residents as well as many workers and hotel guests in the city's historic old town and popular Deutz district, a statement from the authority said. Three American bombs from World War II, each with impact fuses, were discovered during construction work on Monday in Deutz, a bustling area on the bank of the River Rhine. A team of bomb disposal experts plans to disarm the ordnance later on Wednesday, the statement said. Unexploded bombs are often found in Germany, which had many of its major cities bombed to ruins during the war, and such operations often go smoothly. The evacuation area includes one hospital, two retirement homes and nine schools, as well as 58 hotels and many museums. "Everyone involved hopes that the defusing can be completed in the course of Wednesday. This is only possible if all those affected leave their homes or workplaces early and stay outside the evacuation area from the outset on that day," the city authority said in a statement appealing to residents to follow instructions. The measures caused major disruptions to transport in and out of the city of over a million people, with Germany's national rail operator warning that many trains would be diverted or possibly cancelled. (Reporting by Rachel More; Editing by Ludwig Burger)
