GM low profit forecast for tariffs [Internacional] – 07/25/2018

Detroit .- General Motors Co lowered its earnings forecast for 2018 on Wednesday because of higher costs of steel and aluminum after the tariffs imposed by the US president's government Donald Trump, who dropped their profits sharply. The largest automaker in the United States said it could partially offset higher raw material costs and the adverse effect of exchange rate fluctuations in Brazil and Argentina, but that they would have a net impact of approximately $ 1 billion on the company's results in 2018.

Previously, GM calculated that these costs would total approximately $ 500 million.

GM Chief Financial Officer Chuck Stevens He told reporters that the automaker had a "strong performance" in the second quarter, "despite some setbacks in the"

Most additional costs were recorded in America North, Stevens added

"We have work to do there," he said.

The automaker buys most of the steel it needs from US producers, who increased their prices in response to tariffs imposed by the Trump government at the beginning of the year

GM sales in the US good performance in the second quarter and deliveries to dealers increased 4.6% compared to the same period in 2017.

Despite tariffs, Stevens said that the recent tax reform in the United States and the low unemployment rate should help maintain veh sales New cells in the industry at a high level, either below or at the same level in 2017.

"We do not expect the tariffs to have repercussions on the US industry in 2018 ", did he declare. "There is a lot of uncertainty right now about what will happen after 2018."