Auto Stocks Aren’t Reflecting ‘Full Tariff Risk.’ GM Falls on 43% Price-Target Cut.  Barron's

By Tom Westbrook and Ankur Banerjee SINGAPORE (Reuters) - Worries about throttled global trade and a hit to auto industry profits sent shares of car makers tumbling and drove markets broadly weaker on Thursday after President Donald Trump put a wall of tariffs around the U.S. auto sector. Some $16.5 billion was wiped from transport stocks in Tokyo, according to LSEG data. They also slid in South Korea, and Europe was braced to sell, with the euro at three-week lows and German DAX futures down 0.7%. Toyota (NYSE:TM) fell 2.7%, Honda (NYSE:HMC) 3% and Nissan (OTC:NSANY) 2.2%. Hyundai Motor (OTC:HYMTF) and Kia in South Korea dropped about 4% each. [MKTS/GLOB][.T][.KS] Volkswagen (ETR:VOWG_p), Europe’s top car maker, is in the frame since 43% of its U.S. sales are sourced from Mexico, S&P Global Mobility estimates, and even U.S. marques were down in after-hours trade since their supply chains spread across North America. The tariffs have been well flagged and so some of the losses were limited because of how much had already been priced in and because car ownership is so popular in the United States that investors think consumers will eventually just keep buying. But the signal - hurting allies and car buyers - was nevertheless unsettling for markets which have been slow to accept that the levies may become permanent fixtures and drive lasting changes in world trade flows. The head of Germany’s car industry association said the tariffs are a "fatal signal" for global trade. "It’s hard not to interpret this as anything but a cue for higher prices and lower growth," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities in Singapore. Trump said 25% tariffs on imported cars and light trucks would begin on April 3. Almost half of the 16 million cars sold in the U.S. last year were imported, with a total value exceeding $330 billion, Goldman Sachs analysts said. The investment bank’s analysts expect a hit to sales, before a gradual recovery. But the damage would be enough to put Toyota, Honda, Nissan, Mazda Motor (OTC:MZDAY), Subaru (OTC:FUJHY) and Mitsubishi Motors (OTC:MMTOF) below market consensus profit estimates for the 2026 financial year - with Mazda taking the heaviest hit. Mazda shares sank 6.1% on Thursday. SHAKE UP The new levies could add thousands of dollars to the cost of an average U.S. vehicle purchase and impede production due to the intertwined manufacturing operations developed over decades by car makers across Canada, Mexico and the United States. In U.S. after-hours trade, General Motors (NYSE:GM) tumbled 6%, while shares in Ford fell almost 5%. Shares in Tesla (NASDAQ:TSLA) slipped about 1%, drawing some support since the tariffs add to already punitive levies keeping Chinese electric vehicle makers mostly out of the U.S. market. BYD (SZ:002594), which is leading an overseas push by Chinese automakers, said it has no plans to sell into Canada or the U.S. but will grow global sales and build factories abroad. Its shares rose 2.3% on Thursday for a 53% gain so far this year. Earlier in March, Volkswagen said it was working on back-up plans for how its passenger car brand could tackle U.S. tariffs on imports from Mexico, while BMW (ETR:BMWG) prepared to absorb the cost. Other than automakers’ shares, market moves were muted. Bond markets were steady. The Mexican peso slipped, though only slightly, outside of its usual trading hours, and the Canadian dollar was steady. Investors are waiting for further details of a wider range of tariffs Trump says he will levy on trading partners next week. "I think the big concern is that not only will these tariffs be disruptive and economically harmful, but they indicate that the Trump administration’s shake-up of global trade won’t necessarily end with next week’s announcement," said Kyle Rodda, a market analyst at Capital.com in Melbourne. "This potentially drags out trade uncertainty even longer and raises the question of how radical a change to the global trade order is Trump trying to bring about." Should you invest $2,000 in GM right now? Before you buy stock in GM, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is GM one of them?

Sensex and Nifty end lower on July 24, 2026, with auto stocks leading losses. FIIs continue net selling. Get the latest Indian stock market insights.

Reliance, auto stocks lead rise in India's stock benchmarks  Reuters

4 Auto Stocks Likely to Outperform Q2 Earnings Estimates  Yahoo Finance

(Reuters) -European shares retreated on Friday, giving back gains from the previous session, as automobile stocks weighed and investors awaited updates on EU-U.S. trade talks ahead of U.S. President Donald Trump’s tariff deadline next week. The pan-European STOXX 600 index was down 0.6% at 548.16 points, as of 0712 GMT, after hitting a six-week high on Thursday. Still, the index remained on course for modest weekly gains. UK’s FTSE 100 dropped 0.4%, pulling back from its all-time peak reached on Thursday. Most regional bourses were also in the red. In the market, European automobile stocks led the sectoral decline with a 1.4% drop, pressured by Valeo (EPA:VLOF) after the French car parts supplier cut its full-year sales outlook. Its shares slumped 12.4%. Volkswagen (ETR:VOWG_p) fell 2.4% after Europe’s biggest carmaker lowered its outlook on tariff woes. Traton, a truck unit of Volkswagen, came under pressure with an 8.1% slump after it slashed its full-year outlook. Among other stocks, Puma (OTC:PMMAF)’s shares slumped 18.7%, falling the most in the STOXX 600, after the German sportswear brand cut its full-year outlook and reported weaker-than-expected quarterly results. In a week filled with trade discussions, investors cheered agreements with Japan, Indonesia and the Philippines, while hopes for a U.S.-EU deal remain as negotiations with the bloc continued.

European shares slip as auto stocks weigh, investors eye US-EU trade talks  Yahoo.co

Investing.com -- Bank of America assessed both Ford and GM in a second-quarter preview note on Monday, telling investors that it sees one as better-placed than the other. According to the bank, Ford is better positioned than General Motors (NYSE:GM) heading into second-quarter results, pointing to strong sales and a favourable product mix. BofA wrote: “We see F better positioned relatively to GM given that F may be able to capitalize on strong sales while GM may face some mix headwinds in the quarter.” Ford’s North American sales were the strongest since the second quarter of 2019, supported by the “From America, for America” initiative. “Sales mix appears to be rich, and FX is likely to have turned into a tailwind,” BofA said. Although tariffs are expected to pressure results, the bank believes Ford is on track to beat consensus expectations. It reiterated a Buy rating on the stock. General Motors, also rated Buy, may report more muted results. “We expect GM results to be subdued in 2Q25 due to the effect of tariffs and weaker mix,” analysts wrote. While sales were strong, BofA noted “some volatility on the production side,” particularly with the high-margin T1XX platform, where output was down 8% year over year. Tariff impact could also hit GM harder than Ford, with mitigating actions not likely to take effect until later in the year. Investors will be watching for updates to 2025 guidance and assumptions on volumes and pricing for 2026 model-year vehicles. BofA said demand for Ford products could remain strong into the third quarter, although it warned of potential weakness for the company’s Model e lineup by year-end.

(Reuters) -European shares nudged higher on Tuesday, driven by automobile stocks, as sentiment improved after U.S. President Donald Trump signalled a readiness to negotiate tariffs with the European Union. The pan-European STOXX 600 index gained 0.2% to 547.74 points, as of 0711 GMT. Other regional indexes also traded higher. On Monday, the European Union accused the U.S. of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump, meanwhile, said he was open to talks with the EU and other trading partners, adding that EU officials would be coming to the U.S. for trade negotiations. Trump had escalated trade tensions over the weekend, threatening a 30% tariff on most EU imports from August 1. In the market, auto stocks rose 0.9%, technology stocks advanced 0.8%, while telecoms shares fell 0.8%. Orsted (CSE:ORSTED) rose 5.5% after Morgan Stanley raised the Danish offshore wind developer to "Overweight" from "Equal Weight". In the U.S., earnings season is also set to begin on Tuesday, with second-quarter reports from major banks, while investors also await U.S. consumer price data for June due later in the day.

U.S. auto stocks: Who is leading the EV race?  Investing.com

Investing.com -- Chinese automakers and Tesla (NASDAQ:TSLA) continue to lead the global electric vehicle (EV) race, while U.S. automakers lag in key performance metrics, according to the 2024 Global Automaker Rating released by the International Council on Clean Transportation (ICCT) and discussed in a June 24 webinar hosted by Bernstein Research. The ICCT assessed 21 major global automakers using ten metrics across three categories: market dominance, technology performance, and strategic vision. Chinese firms and Tesla remain the only two in the “leader” category. U.S. legacy manufacturers improved modestly, but none broke into the top tier. In market dominance, which includes zero-emission vehicle (ZEV) sales share and model class coverage, Chinese automakers outpaced all others. BYD (SZ:002594) saw a 47% year-over-year increase in EV sales, surpassing Tesla in global battery EV volume. U.S. automakers showed limited progress; the national EV sales share rose only from 9% to 10% between 2023 and 2024. In technology performance, measured by energy consumption, charging speed, driving range, and upstream decarbonization, U.S. manufacturers made selective gains. General Motors (NYSE:GM) improved in charging speed and launched higher-performing models like the Chevrolet Blazer. Ford and GM both scored positively on green steel procurement after signing offtake agreements. Battery recycling efforts were more mixed, with some automakers lacking evidence of implementation despite public commitments. The strategic vision pillar evaluates ZEV targets, EV-related investments, and executive compensation alignment. In 2024, Stellantis (NYSE:STLA) increased its ZEV investment and maintained top marks for linking executive pay to EV metrics. In contrast, GM lost ground after removing long-term EV incentives from executive compensation. Honda (NYSE:HMC) and Jaguar Land Rover added or enhanced sustainability-linked incentives. Policy uncertainty in the U.S. remains a headwind. The report cites potential rollbacks of EPA regulations, California waivers, and the Inflation Reduction Act as risks that could dampen automaker momentum. While Ford reiterated its battery investment plans regardless of policy changes, others signaled a slowdown amid the unclear regulatory landscape.

Auto Stocks Fall After Trump Says He May Raise Car Tariffs  WSJ

Auto Stocks Fall After Trump Says He May Raise Car Tariffs  WSJ