New U.S. tariffs on foreign cars and parts are putting massive financial strain on major automakers.
General Motors has suspended its 2025 profit forecast and a $4 billion share buyback, citing uncertainty around new tariffs.
Volvo's Q1 operating profit fell 60%, leading to major cost-cutting and plans to restructure its U.S. operations.
Porsche has cut its annual revenue expectations by €2 billion and lowered its profit margin outlook for the year.
To reduce costs, several automakers are considering moving more production to the U.S. or altering supply chains.
These financial pressures may lead to higher car prices, reduced innovation budgets, and delayed model launches.
Tariffs are reshaping the auto industry. Automakers must adapt quickly — or risk falling behind in a changing market.