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-0.000864304235090734 -0.000864304235090734 -0.00129645635263618 0.00259291270527235 0.0146931719965428 0.0177182368193604 0.0172860847018151 0.0125324114088159
Stock impact report

Deutsche Bank downgrades GM, warns of long-term tariff hit to Detroit automakers [Yahoo! Finance]

Rivian Automotive, Inc. (RIVN) 
Company Research Source: Yahoo! Finance
structural risks tied to newly implemented U.S. auto tariffs that could weigh on Detroit automakers for years. Ahead of first-quarter earnings, DB flagged “tremendous uncertainty” for U.S. automakers stemming from a 25% tariff on all imported vehicles and auto parts taking effect May 3. While Deutsche Bank expects a strong first half of 2025 driven by consumer pre-buying, it sees a sharp decline in volumes in the second half as tariffs drive up average transaction prices. The firm forecasts full-year U.S. light vehicle sales to fall to 15.4 million from 16.0 million in 2024. Ford and GM could each see gross cost increases exceeding $10 billion from the tariffs, Morgan Stanley estimates. Deutsche Bank don't expect OEMs to bear the full burden, noting that strategies such as price increases, production shifts, and vertical integration are likely. However, they warned that moving production to the U.S. may incur higher labour costs, especially with union wages up to 10 times Show less Read more
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