Deutsche Bank Downgrades General Motors to Hold Amid Tariff Concerns

Deutsche Bank has downgraded General Motors (GM) from 'Buy' to 'Hold,' lowering its price target from $58 to $43, citing structural uncertainty due to newly implemented U.S. auto tariffs. Analyst Edison Yu warned that the 25% tariffs on imported vehicles and auto parts could lead GM to face long-term challenges, potentially viewing the company as an 'impaired asset' for several years. Despite expected strong first-quarter earnings, GM, alongside Ford, is anticipated to retract its full-year guidance as it navigates the increased costs associated with tariffs. The firm forecasts a decline in U.S. light vehicle sales and suggests that strategies like price increases and production shifts may be necessary to mitigate the impacts. GM's shares have fallen 18% this year, reflecting broader concerns within the automotive sector regarding trade policies. The outlook suggests that both GM and Ford may struggle with profitability as they adapt to these financial pressures.