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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (61109)	7/25/2018 6:43:11 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78958

Why are the auto stocks down so much , is this because of GM’s results? I expected GM to have cost issues, du to the rapidly rising steel prices. It’s very difficult to turn around and increase the MSRP on the fly in a competitive business like automobiles. The importers have seen rising steel prices too, but not to the same extend, because they have not instituted tariffs on steel. It will be interesting to see how the talks with the EU turn out. If the tariffs for cars and trucks are reduced to zero, we will see lower prices on trucks over the long run. Right now, this is a protected market (with a 25% import tax) it is not economical so virtually all the profits from US manufacturers come from trucks. so, it will be interesting to see if lower tariffs are actually beneficial for US car manufacturers (which are truck manufacturers for all practical purposes). Some niche products like Tesla and Jeep will benefit from lower tariffs to Europe, because there is no equivalent on sale there.