Automakers Change Production, Sales Plans Based on Trump Tariffs

Newsweek

02-05-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
The global automotive industry has responded in a variety of ways to tariffs imposed by the Trump administration. Some companies ceased imports while others have announced price freezes. Automakers have even gone so far as to announce production shifts.
Under current rules, vehicles imported to the U.S. are subject to a 25 percent tariff. This week, President Trump signed an executive order modifying the tariff action on vehicles and car parts. The higher the percentage of a vehicle that is made in the U.S. or falls under USMCA (United States-Mexico-Canada Agreement) regulation, the less tariffs will have to be paid on it.
"Tariff uncertainty is forcing automakers into a reactive tailspin. In an industry that thrives on stability and long lead times, shifting policies upend both short-term production planning and long-term investment strategy—driving up costs, undercutting margins and destabilizing global supply chains," Paul Waatti, director of industry analysis at AutoPacific, told Newsweek.
Newsweek asked every major automaker how they're adjusting to the tariffs. Here's what they said.
Aston Martin
In its first-quarter earnings call, the automaker announced that it has paused all imports to the U.S. A company spokesperson offered no comment to Newsweek on other speculative press reports regarding inventory sales.
Doors-up view of the 2026 Aston Martin Valhalla.
Doors-up view of the 2026 Aston Martin Valhalla.
Aston Martin
Audi
"We look to price our vehicles to be competitive in the market and attractive for U.S. consumers. Audi will maintain current pricing on new and existing models through the end of May while continuing to evaluate the impact of the changing tariff landscape long-term. We have no further information to share at this time," a company spokesperson told Newsweek.
Bentley Motors
A spokesperson told Newsweek, "Bentley is monitoring the U.S. tariff situation closely. At this time pricing remains unchanged, and all customer orders are being price protected."
BMW Group
Automotive News reported that an internal memo shared with dealers stated that BMW will not raise prices on most of its new models until the end of June. The company's 2-Series and 3-Series cars are built in Mexico and will have a 4 percent price increase in May. A spokesperson for BMW told Newsweek, "We are evaluating these latest announcements in detail and will not comment further at this time."
Ferrari
Some Ferrari models, the Purosangue SUV, 12Cilindri and F80 cars, received a 10 percent price increase in response to the Trump administration's tariff news a few weeks ago. Newsweek has reached out to Ferrari for an update.
Ford Motor Company
In April, Ford kicked off a sales promotion in reaction to the Trump tariffs announcement. From April 3 to June 2, the company is offering select 2024 and 2025 Ford and Lincoln brand vehicles at the discounted price it offers its employees. The promotion covers gasoline, battery-electric and hybrid powertrain models.
Some vehicles are not covered in the promotion: Ford Bronco Stroppe and Raptor SUVs, Ford F-150 Raptor trucks, Ford Mustang Dark Horse and GTD cars, all Ford chassis cab models, 2025 Ford Expedition, 2025 Lincoln Navigator, 2025 Ford Explorer and 2025 Lincoln Aviator.
When contacted for comment, the company directed Newsweek to CEO Jim Farley's quotes from earlier this week at the Ford Expedition launch event in Kentucky: "Imagine if the companies importing 8 million vehicles a year into America invested in this country like Ford does, instead of putting out ads that cherry-pick data to 'prove' how American they supposedly are. Some people call this 'America-washing'—and that's not what we need right now. We need real commitment."
Jim Farley, President and Chief Executive Officer of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition, Wednesday, April 30, 2025, in Louisville, Ky.
Jim Farley, President and Chief Executive Officer of Ford, speaks at the Ford Motor Company Kentucky Truck Plant to launch the 2025 Ford Expedition, Wednesday, April 30, 2025, in Louisville, Ky.
associated press
"More than 80 percent of the vehicles Ford sells in America are assembled in America – plus we export significantly. If each of our competitors matched that commitment, it would mean 4 million more vehicles assembled in America every single year. Think about that. What a job stimulus that would be for our country," he said.
General Motors
In a letter to shareholders this week, General Motors CEO Mary Barra made the case that the automaker is authentically invested in America. "Almost one million people in this country depend on GM for their livelihoods, including our employees, suppliers and dealers. We have a network of 50 U.S. manufacturing plants and parts facilities in 19 states, which includes 11 vehicle assembly plants. And we have invested $60 billion here over the last five years," she wrote.
She also explained that GM faces, "a current tariff exposure of $4 billion - $5 billion."
On a call with analysts, Barra said that the company's Fort Wayne, Indiana, truck plant, where the Chevrolet Silverado 1500 and GMC Sierra 1500 are built, has increased production by 50,000 units. Overtime days may be added to the work schedules of workers to support the change. Reuters reported that a letter sent to United Auto Workers Local 2209 members told employees that 225 to 250 jobs will be added as a result of the increase.
Newsweek has reached out to General Motors for additional comment but did not hear back by the deadline.
2025 Honda Civic hybrid front view while being driven.
2025 Honda Civic hybrid front view while being driven.
American Honda Motor Co., Inc.
Honda
In April, Honda confirmed that it would move production of its Civic hybrid sedan to the U.S. from Japan in response to tariffs. The Civic hybrid is projected to make up about 40 percent of all American Civic sales. Production of Acura models is currently unchanged.
A request to Honda for comment went unanswered by Newsweek's deadline.
Hyundai Motor Group
All Kia, Genesis and Hyundai branded models have their prices frozen until at least June.
The opening of the company's Hyundai Motor Group Metaplant America, and promises of new and expanded production capacity for supplies and final assembly products, were touted by the Trump administration weeks ago as an example of making America great again.
When contacted for comment, the company pointed Newsweek to this statement, released earlier this week: "Hyundai Motor Company President and CEO Jose Muñoz was honored to join President Trump and fellow business leaders at the White House to recognize the vital role private investment plays in strengthening America's economy. Hyundai Motor Group recently announced a $21 billion commitment to the United States to expand manufacturing capacity, strengthen supply chains, and support future technologies such as advanced mobility, robotics, artificial intelligence, and EV charging infrastructure. These investments are expected to create more than 100,000 direct and indirect jobs across the country, including 14,000 new full-time positions at Hyundai.
"Hyundai's commitment to the United States spans nearly four decades and supports over 570,000 American jobs across our operations and supply chain. The newly opened Hyundai Motor Group Metaplant America in Georgia—the largest economic development project in the state's history—underscores our long-term investment in U.S. manufacturing, innovation, and workforce development. This year, we are also celebrating the 20th anniversary of Hyundai Motor Manufacturing Alabama, which laid the foundation for the growth of our U.S. production footprint. We remain deeply committed to expanding our presence and contributing to the country's economic success."
Ineos
An Ineos spokesperson told Newsweek that the company has raised the price of its Grenedier SUV five percent to $78,900 and Quartermaster pickup to $92,900, a 10 percent increase, in response to the tariffs. Any inventory that existed on dealer lots prior to April 3 and is still there is not subject to the price increase.
JLR
The flow of shipped vehicles from the U.K. to the U.S. is ongoing with new inventory arriving at dealerships. "The USA is an important market for JLR's luxury brands and incremental 25 percent tariffs on autos remain in place. As we work to address the new U.S. trading terms with our business partners, we are enacting our planned short-term actions, as we develop our mid- to long-term plans. We will give a further update at our full year results in May," a company spokesperson told Newsweek.
Lucid Motors
Lucid responded to a comment request from Newsweek by directing attention to the April interview its interim CEO Marc Winterhoff did with Fox Business anchor Liz Claman on "The Claman Countdown" where Winteroff breaks down where various components of Lucid's vehicles are made and assembled.
Mazda
Mazda Toyota Manufacturing (MTM) will suspend production of the CX-50 for the Canadian market starting May 12. The temporary pause, a spokesperson for Mazda North American Operations told Newsweek, will not result in any changes to overall production volume as the company will increase production for the U.S. market at during the pause.
2025 Mazda CX-50 front view while parked.
2025 Mazda CX-50 front view while parked.
Mazda North American Operations
MTM is Mazda's only vehicle assembly plant in the U.S. "We intend to utilize MTM to the fullest to support the growth of our business," the spokesperson said. "We will continue to monitor the situation, including government negotiations, market trends and policy developments, and will consider flexible and appropriate responses accordingly."
Mercedes-Benz
Weeks ago, the German automaker confirmed media reports that prices will not rise on 2025 model year vehicles at this time.
Mercedes-Benz announced this week that it intends to produce a new vehicle at its Tuscaloosa, Alabama plant beginning in 2027. The automakers said in a press release that the model will be "tailored to U.S. customer preferences." Vehicles are routinely tuned for the market where they are sold to meet customer expectations.
Mercedes-Benz already makes the GLE, GLS, GLE Coupe and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV and Mercedes-Maybach EQS SUV for all global markets at its Alabama facility.
Mitsubishi
On Thursday, the automaker confirmed to Newsweek that it's still shipping vehicles from Japan to the U.S. However, those vehicles are being held at the port once they arrive as the company evaluates the longevity and impact of the tariffs on their business. Mitsubishi plans to release the vehicles to be shipped within the country at what it says is, "the appropriate time."
Nissan Motor Corporation
A spokesperson told Newsweek that the Nissan's brand stance as not changed following the latest tariff news, pointing out that in the U.S. Nissan sells six vehicles priced under $30,000.
"Nissan holds a unique position in the industry. Not only do we offer six vehicles at a starting price of under $30k—spanning sedans, SUVs and EVs—but, in a market where vehicle prices have increased, we've recently further reduced the price of our best-selling model, Rogue. Whether a first-time buyer or someone simply seeking greater affordability, we can meet consumer needs without compromising on quality, safety, advanced technology or value," Vinay Shahani, senior vice president of U.S. marketing and sales for Nissan Americas, told Newsweek.
A report by Nikkei said that the company plans to shift some Rogue SUV production to the Nissan plant in Smyrna, Tennessee. The company also makes the Rogue at its facility in Kanda, Fukuoka, Japan.
Side and rear view of the 2025 Nissan Rogue Rock Creek SUV.
Side and rear view of the 2025 Nissan Rogue Rock Creek SUV.
Nissan
Tiago Castro, vice president of INFINITI Americas, told Newsweek, "As the tariff situation evolves, we've taken proactive steps to minimize disruption for both our clients and retail network. That includes guaranteeing MSRP through June 2 to provide continued stability and value."
"On the production side, we are accelerating our focus on U.S. manufacturing. Infiniti will continue assembling Infiniti QX60 at our Smyrna, Tennessee, plant, increasing volume to meet growing demand. Infiniti QX65, an all-new nameplate for the brand, will also be built in Tennessee, reinforcing our commitment to localized manufacturing. We currently have ample U.S. inventory that remains unaffected by the new tariffs," he said.
Castro added: "We're continuing to monitor the situation closely and will make further adjustments as needed to ensure our clients receive strong value, exceptional service and uninterrupted access to our award-winning lineup."
Rivian
Like Lucid, much of Rivian's product is sourced from, built in and assembled in the U.S. The company told Newsweek that it did not have a comment for this story at this time.
Stellantis
The parent company of the Jeep, Chrysler, Dodge, Ram, Fiat and Alfa Romeo brands has paused European vehicle imports and scaled back other shipments in response to the tariffs.
In April, the company announced a production pause at its factories in Canada and Mexico, a move that trickles down to result in an expected 900 layoffs at temporary layoffs at the automaker's American powertrain and stamping plants.
When contacted for comment, the company pointed Newsweek to information from their Q1 shipments and revenues call. Stellantis' Chrysler, Dodge, Jeep, Ram and Fiat brands will offer the Employee Pricing Plu$ program through May on select 2024 and 2025. The difference between the Employee Pricing Plu$ program and the America's Freedom of Choice program that was previously offered is that the new program allows buyers to take advantage of employee pricing and incentives.
Subaru
Some speculative media reports indicated that Subaru was moving production of its Outback model out of Indiana, to Japan, in reaction to the Trump tariffs. The change was planned before the 2024 election, as the plant is switching to produce the Forester hybrid SUV instead. When contacted by Newsweek, Subaru had no comment for this story.
Toyota Motor Corporation
The company told Newsweek that everything for Toyota and Lexus is "business as usual" right now, with no adjustments to sales objectives or manufacturing.
Volkswagen
Thursday, a Volkswagen representative told Newsweek: "We appreciate the Trump Administration's decision to ease some automotive tariffs. We're assessing the impact of this recent move and how we'll adjust the business. No final decisions have been made. We are committed to our customers, our dealers and our employees in North America."
Volvo
The Swedish automaker told Newsweek: "Volvo Cars follows government rules and pays all required duties on all imported vehicles and on all parts as required by law. This is standard practice and what we do in all markets where we operate. We are looking into the effects of the recent changes in tariffs as announced by the U.S. government though it is too soon to comment further at this stage."