While both careful not to specifically cite the politically unwise ‘tariffs’, GM and Fiat Chrysler stocks are plunging in the pre-market after trade war-related impacts caused missed earnings or lowered outlooks.
General Motors Co. cut its forecast for profit this year as surging prices for steel and aluminum combine with swings in South American currencies to burden the largest U.S. automaker. Specifically, Bloomberg reports that raw material costs probably will be a $1 billion headwind to GM’s profit this year – roughly double its previous expectation – while the Argentine peso and Brazilian real are likely to drag on results through the remainder of 2018.
Fiat Chrysler Automobiles NV cut its financial targets after disappointing sales in China took a toll on second-quarter results (and the sad news of the death of former CEO Sergio Marchionne).
It’s a bloodbath – GM is down around 5% and Fiat Chrysler around 11%…
The rest of ther auto space is also under pressure with Daimler -3%, Ferrari -2.9%, Volkswagen -2.5%
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