Auto Imports Probe Sparks Rise in Auto Stocks

Domestic auto stocks in the United States rose Thursday after the U.S. Department of Commerce started an investigation into automobile imports.

The government is looking into whether the imports “threaten to impair the national security” of the United States. It will be carried out under Section 232 of the Trade Expansion Act of 1962, the agency said in a statement on Wednesday.

President Donald Trump asked Commerce Secretary Wilbur Ross to carry out the probe.

Trump has discussed plans for auto import tariffs with industry officials, The Wall Street Journal reported Wednesday, citing sources. The report said the tariffs could be up to 25%.

Shares of Ford (NYSE: F) and General Motors (NYSE: GM) gained in the early portion of Thursday’s session. Ford shares inched up two cents to $11.46, while those of General Motors gathered 11 cents to $37.96

U.S.-traded shares of Toyota Motor (NYSE: TM) were down $2.43, or 1.8% to $132.40 in the session.

Elsewhere on the auto front, Ford announced this week that, it will participate on Thursday, May 31 in a fireside chat at the 2018 Auto Tech Conference organized by RBC Capital Markets.

Marcy Klevorn, Ford’s president for Mobility, will share insights on the company’s strategy to develop smart mobility solutions, enhancing the vehicle experience for Ford customers and enabling cities to improve accessibility and reliability of transportation.

Toyota, for its part, unveiled plans Thursday for two major new facilities today: a brand-new building near its original automobile factory for expanding fuel cell stack mass production, and a new line in an existing plant to manufacture high-pressure hydrogen tanks.

This article provided by NewsEdge.