From Yahoo Finance: 2025-04-02 01:04:00

Magna CEO Swamy Kotagiri navigates industry upheaval due to tariffs affecting global auto supply chain. President Trump’s 25% tariffs on foreign auto imports expected to increase consumer prices and reduce demand, impacting companies like Ford, GM, and Toyota. Magna adapts with flexibility, passing costs to consumers and reprogramming robotic arms as needed.

Smaller auto suppliers face distress as costs rise and revenues remain soft. Lack of complete visibility into supply chain poses challenges for companies like Magna. Rising auto costs could reduce U.S. sales by over 1 million vehicles annually. Magna eyes growth in China, with 13% of revenue coming from China business.

As automakers consider moving production stateside to avoid tariffs, Magna may see increased demand in the U.S. market. Hyundai announces $21 billion investment in the U.S., while Lear considers expansion. Magna positions itself for growth in China, with 69 manufacturing facilities employing over 30,000 people.



Read more at Yahoo Finance: How one of the largest auto suppliers in the world is preparing for Trump’s tariffs