European Automakers Face 16% EBIT Downside From U.S. Tariffs -- Market Talk

Dow Jones

Apr 03, 2025

0718 GMT - U.S. tariffs open up a 16% downside to 2025-2026 EBIT across the automakers, led by Porsche, Stellantis and Mercedes-Benz, Citi analysts write. Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

April 03, 2025 03:18 ET (07:18 GMT)

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Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. (dominic.chopping@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 03, 2025 03:18 ET (07:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>European Automakers Face 16% EBIT Downside From U.S. Tariffs -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEuropean Automakers Face 16% EBIT Downside From U.S. Tariffs -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-04-03 15:18</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0718 GMT - U.S. tariffs open up a 16% downside to 2025-2026 EBIT across the automakers, led by Porsche, Stellantis and Mercedes-Benz, Citi analysts write. Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. (dominic.chopping@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 03, 2025 03:18 ET (07:18 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"STLA","symbol_name":"Stellantis NV","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2524116400","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2524116400","pubTimestamp":1743664680,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0718 GMT - U.S. tariffs open up a 16% downside to 2025-2026 EBIT across the automakers, led by Porsche, Stellantis and Mercedes-Benz, Citi analysts write. Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"STLA":"Stellantis NV","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","MBGYY":"Mercedes Benz Group AG","BK4099":"汽车制造商"},"translate_title":"欧洲汽车制造商面临美国关税16%的息税前利润下降——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"STLA":0.9,"MBGYY":0.9},"content_text":"0718 GMT - U.S. tariffs open up a 16% downside to 2025-2026 EBIT across the automakers, led by Porsche, Stellantis and Mercedes-Benz, Citi analysts write. Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. (dominic.chopping@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  April 03, 2025 03:18 ET (07:18 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}