Welcome to the Daily 5 report for Thursday, July 10.
In the world of tariff uncertainty, five types of news stories seem to be emerging as the auto industry grapples with the impact of President Donald Trump's global trade negotiations.
First of all, we have job cuts. Today was Volvo Car's turn, as it announced a 15 percent reduction in its U.S. salaried workforce, or about 60 jobs, Urvaksh Karkaria reported.
Then you have stories such as this one from Kurt Nagl of our affiliate Crain's Detroit Business, which details how automakers such as Ford Motor Co. and Stellantis seek to wring out contractual concessions from their suppliers as they try to mitigate the cost of tariffs on the components they purchase. With the abysmal state of relations between Stellantis and Ford and their suppliers, these kinds of games played with "terms and conditions" seem counterproductive but not surprising given the stakes.
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Within Nagl's piece you also see the third type of story: financial impacts on automakers and suppliers. Ford said it expects its tariff exposure for 2025 to be about $2.5 billion and that it plans to offset $1 billion of it. Stellantis estimates it faces between $1.2 billion and $1.8 billion in costs. We'll see a lot more of these stories in a few weeks when second-quarter earnings reports emerge.
We also are routinely covering the impact on vehicle sticker prices, roughly estimated at $2,000 per vehicle, according to this story from Bloomberg.
Finally, there are the almost daily updates on current trade talks with key auto exporting nations, such as this one on the state of European negotiations.
Getting back to Ford and its suppliers, the automaker's 89th U.S. recall of the year emerged. Some 850,000 vehicles across multiple marques are being called back for faulty fuel pumps. The supplier of the pumps was identified as Phinia Inc., which spun off from BorgWarner Inc. in 2023. As is typically the case with recalls, it's unclear if the supplier was at fault for the defective part.
Finally, Tesla Inc. today scheduled its annual shareholders meeting for Nov. 6. Investors have been restless about the timing of the meeting given the last one was held about 13 months ago.
That's it for now. Have a great rest of your day. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
