Detroit automakers are attempting to reassure their employees as they work to mitigate challenges posed by President Donald Trump's sweeping 25% tariffs on imported vehicles and auto parts set to go into effect on Thursday.
What To Know: The Detroit Free Press said it obtained internal memos dated March 27 from both General Motors Co.
Ford CEO Jim Farley told employees in the memo that the company is still examining potential impacts from the tariffs, which it expects to be "likely to be significant."
"While Ford supports the president's vision of building a stronger auto industry and manufacturing base in the United States, the situation is dynamic and the impacts of the tariffs are likely to be significant across our industry - affecting automakers, suppliers, dealers and customers," Farley wrote.
He noted nearly 80% of the vehicles Ford sells in the states are made in the U.S. but, "this does not mean Ford is immune to the impact of tariffs, which could be meaningful."
"I assure you that our Ford team has been and will continue to engage closely with the Trump administration as well as policymakers in the U.S., Canada, Mexico and other markets to help shape these critical trade and policy issues," Farley added.
The Detroit Free Press also reported that it obtained an unsigned internal memo from General Motors which noted the tariffs will have an impact on the company's manufacturing operations and supply chain, though it did not give exact figures or estimates.
The memo did say GM leadership is planning to keep the company "nimble based on any tariffs announced by the U.S. administration," and the company supports a strong U.S.-based auto industry.
It also encouraged employees to focus on their work and on managing costs.
"We are in a strong position to navigate this dynamic situation and will continue to deliver for our customers, employees, and communities. Each of us can contribute by staying focused and delivering on plans for this year, maintaining a disciplined approach and managing discretionary costs," the GM memo reads.
What Else: President Trump on Saturday expressed his anticipation for price increases in response to the tariffs on auto imports and reaffirmed his decision to raise tariffs in an effort to boost American manufacturing.
"I couldn't care less if they raise prices, because people are going to start buying American-made cars," Trump stated in an interview with NBC News.
GM, F Price Action: General Motors shares ended Monday's session 0.75% higher at $47.03 and Ford shares closed 3.19% higher at $10.03, according to Benzinga Pro.
