General Motors cut its full-year profit forecast today, in part due to higher commodity costs as it amplified its warning that mushrooming trade conflicts could dent US and global car sales.
GM trimmed its earnings forecast from its prior range of USD 5.52 to USD 5.82 per diluted share to approximately USD 5.14 per share.
The company cited a "significant" increase in commodity costs, as well as the sinking valuation of the Argentine peso and Brazilian real that have marred its sales outlook in those markets.
GM continues to see US auto sales coming in above the solid level of 17 million vehicles for all of 2018 but views the outlook for 2019 as up in the air in light of trade policy uncertainty, said chief financial officer Chuck Stevens.
"We're not expecting a tariff impact to impact the US industry in 2018," Stevens told reporters at a briefing.
"What happens beyond 2018, I think there's a lot of uncertainty in this space at this point in time. We're going to have to see where it lands and how ultimately that impacts the US industry and the global industry frankly."
The US giant has warned that the tariffs could "lead to a smaller GM."
"With that said, we have to react long-term to the macro situation and I'm sure if we don't see improvement to the macro situation that we'll step back and take a look at it just like we have in other markets."
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