GM, Ford miss out on tax benefit Trump hands to German, Japanese automakers

Tax cuts signed by an America First president are turning out to be a major boon to some of the world’s biggest automakers -- except those based in the US.
General Motors Co. took a $7.3 billion charge in the fourth quarter because the assets it racked up from having reported years of losses in the past are no longer as valuable with the lower US corporate tax rate. Ford Motor Co. has forecast an adjusted effective tax rate of about 15 per cent this year, about the same as what it paid in 2017.

Compare that with the big boost Japanese and German automakers expect from President Donald Trump’s tax bill. Owing less to Uncle Sam will lift profit by about 346 billion yen ($3.1 billion) at Honda Motor Co. and 290 billion yen at Toyota Motor Corp. in the fiscal year ending in March, according to the companies. Mercedes-Benz maker Daimler AG reported a favorable impact of about 1 billion euros ($1.2 billion) to 2017 profit.