Import tax would hurt Jaguar Land Rover, help rivals
By Bloomberg | China Daily | Updated: 2017-02-13 07:47
As Washington mulls a tax on imports, an auto industry study suggests the policy would deliver the sharpest blow to Tata Motors' Jaguar Land Rover while giving a leg up to Tesla and Ford Motor.
In what it calls a "thought exercise," researcher Baum & Associates LLC estimates most automakers would need to raise vehicle prices by thousands of dollars - more than $17,000 per vehicle in the case of Jaguar Land Rover, which imports all its vehicles - to recoup higher costs incurred by a proposed border-adjusted tax.
Ford, with significant domestic manufacturing, would need to mull the smallest price hike among major automakers, at about $282 per vehicle, followed by General Motors at $995, according to the report.
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