Domestic Automakers’ August Sales Drop 5.9% Amid Strikes

U.S. President Trump announced a 50% tariff on Canadian-made cars, trucks, and automotive parts starting January 2024. Analysts believe this will impact Toyota and Honda's Canadian manufacturing operations and profits.

Honda's Q1 profit more than doubled to $2.9B YoY, with sales up 13.5% to $38B. Strong U.S. and India vehicle sales offset struggles in China. EV plans scaled back due to costs and policy changes. Honda raised its annual profit forecast to $2.5B. Favorable exchange rates and motorcycle sales boosted results.

Ford and GM will face tariffs on cars made in Canada due to U.S. tariffs on Canadian goods. Canada's retaliation, effective September 8, may impact housing costs. Ford is up 4.8% YTD but down 3.12% in the past month, while GM is up nearly 7% YTD but down 1.22% in the past month. Both companies may revise earnings guidance.

Honda Motor Co Ltd (HMC) announced a $9.4B cost-saving plan by 2030 to counter Chinese competition. Shares fell 2.5% after the news. HMC's P/S ratio is 0.31, below historical and industry norms, indicating market skepticism. GF Value™ suggests it's 5.4% undervalued at $32.03. Institutional interest is mixed, with 6 gurus trimming and 2 adding positions.

Honda Motor Co. (HMC) plans $9.4B cost cuts by 2030 to address EV losses exceeding $12B, shifting focus to hybrids. Current P/S ratio is 0.38, below historical median. GF Score is 71/100, with strong profitability and growth but weak momentum.

Honda Motor aims to cut costs by 1.5 trillion yen, asking suppliers to reduce prices. The company's shares have seen a 5-day change of -2.37% and a 1st Jan change of +1.05%. This initiative is part of broader efforts to improve financial performance.