Big automakers report U.S. sales jump on pre-tariff consumer surge
By John BIERS
Several leading automakers including Detroit giants General Motors and Ford have reported increased U.S. car sales in the second quarter as consumers fast-forwarded purchases ahead of tariffs.
Sales were particularly brisk early in the quarter as expectations of President Donald Trump's coming tariffs dominated the news. Besides the U.S. companies, Japanese automakers Toyota and Honda and South Korean brands Kia and Hyundai all reported increased sales compared with the 2024 stretch.
"They were able to capitalize on the tariff-induced fear and that drove sales, especially in the early part of the quarter," said Garrett Nelson, equity analyst at CFRA Research.
While the auto industry has been near the center of Trump's efforts to reset global trade, consumers have yet to see significant price increases due to tariffs.
That is because companies have relied on existing inventories that include vehicles imported before tariffs took effect. Prices are expected to rise more in the second half of 2025, but market demand and supply forces could constrain such hikes, analysts said.
GM notched a 7.3 percent rise in vehicle deliveries to 746,588 behind a continued solid performance in pickup trucks and SUVs, as well as good sales of models geared towards customers seeking affordable vehicles.
These include the Chevrolet Equinox and Chevrolet Trax, a lower-priced vehicle imported from South Korea.
Ford, meanwhile, scored a 14.2 percent jump in sales to 612,095, reflecting the boon from a popular program that offered customers employee pricing on many models.
Most of Ford's leading vehicles saw higher sales, including the best-selling pickup F-series, as well as the Ford Explorer SUV.
While Ford had lower sales of its all-electric F-150 Lightning Truck and the Mustang Mach-E, it reported a jump in hybrid vehicle sales.
Higher sales had been expected for both companies, but the increases were slightly more than projected by analysts at Edmunds.com.
At Toyota, sales jumped 7.2 percent to 666,470 autos, with double digit gains in several vehicles, including the Toyota Camry sedan and the Toyota Tacoma pickup truck.
Honda, Kia and Hyundai reported quarterly sales increases of between five and 10 percent.
But Nissan reported a 6.5 percent drop in quarterly sales to 221,441, while Jeep-owner Stellantis was projected by Edmunds to have a 12.8 percent drop to just over 300,000 vehicles.
The United States imposed 25 percent tariffs on imported finished cars in early April.
The Trump administration also enacted a 25 percent tariff on imported auto parts in early May, although White House officials allowed a two-year grace period and stipulated that automakers would not face duplicative tariffs due to a 25 percent levy on imported steel and aluminum.
While retail car prices have not risen significantly, analysts at Cox Automotive last week pointed to a recent ebbing in dealer incentives as evidence of a somewhat tighter market.
Cox Automotive Chief Economist Jonathan Smoke has projected an eight percent rise in prices due to tariffs, adding that "we don't think consumers or fleet buyers are able and willing to accept that added cost," he said at a briefing last week.
Smoke predicted that uncertainty about the economy and whether the Federal Reserve will cut interest rates could lead many buyers to defer purchases.
Nelson said automakers have to be "very careful" with price hikes.
"Things have cooled off from where they were at the beginning of the quarter," he said. "Everything we're seeing suggests that consumers are still very price sensitive."
© 2025 AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Mainichi
3 hours ago
- The Mainichi
'It's meaningful to do what Haneda can't': New president of Narita Airport reveals plans
NARITA, Chiba -- The newly appointed president of Narita International Airport Corp. (NAA) recently shared insights on the airport's unique strengths, which he pointed out Tokyo's Haneda Airport does not have. Naoki Fujii, 64, a former vice-minister of land, infrastructure, transport and tourism, took office as the president of NAA in June. Regarding the functional enhancement of Narita Airport, located in Chiba Prefecture east of Tokyo, by adding a new runway and extending another, he stated, "It's meaningful to do what Haneda can't. We will leverage Narita's strengths." In his comments to various media outlets, he also expressed his intention to focus on diversifying the international flight network and expanding low-cost carrier (LCC) flights. Narita Airport aims to begin operating the newly added and expanded runways in March 2029, increasing its annual takeoff and landing capacity from the current 300,000 to 500,000. Fujii mentioned using the additional 200,000 slots to "expand the network to various countries and regions, making it possible to travel directly to many places from Narita." He emphasized the advantage of Narita's dedicated terminal for LCCs, stating, "We want to increase the number of people who choose to fly from Narita because of the lower fares," showing enthusiasm for the expansion of LCCs. He also mentioned strengthening the acceptance of business jets. Regarding relations with surrounding municipalities, Fujii acknowledged, "There is an unfortunate history, and a tense relationship continued." However, after his appointment, he noted that local government officials expressed "a very strong desire to lead functional enhancement to local development," and he stated that NAA would contribute more to the local economy and in other aspects. Born in the Chiba Prefecture city of Matsudo, Fujii spent his early years there until fifth grade. He remarked, "Many people think Narita Airport is far and inconvenient. I want to challenge that notion." Fujii commutes by train every morning, taking one hour and 40 minutes from Tokyo. (Japanese original by Tsukimi Goda, Narita Bureau)
Japan Today
3 hours ago
- Japan Today
Number of foreign visitors to Japan hits record 3.4 million in July
The number of foreign visitors to Japan in July rose 4.4 percent from a year earlier to 3.4 million, a record for the month, government estimates showed Wednesday, as other nations were in their school holiday season. Recently, Japan has become a major travel destination on the back of the popularity of its culture, such as anime, and the yen's depreciation. By country and region, China topped the list with 974,500 visitors, up 25.5 percent from the previous year, followed by South Korea with 678,600, a 10.4 percent decrease, according to the Japan National Tourism Organization. Visitors from Taiwan ranked third, gaining 5.7 percent to 604,200, a monthly record, due largely to increased flights connecting Japan and the territory. The organization said 15 markets, including the United States, France and Indonesia, set new visitor records for July. On a negative note, travel demand from Hong Kong and South Korea was hit by a rumor on social media that Japan would suffer a devastating natural disaster in July, it said. Speculation of an earthquake -- specifically on July 5 -- spread after a prediction in "The Future I Saw," a manga by Japanese artist Ryo Tatsuki, even prompting the suspension of some regular flights between Japan and Hong Kong. The organization said in a statement that it will pursue the promotion of strategic inbound tourism while closely analyzing market trends. In the three-year plan through fiscal 2025, the government aims to boost travel spending per person to 200,000 yen ($1,355) and raise the average overnight stay in regional areas to two nights, compared with fiscal 2019 levels of 159,000 yen and 1.4 nights. © KYODO
Japan Today
3 hours ago
- Japan Today
PlayStation prices rise as U.S. tariffs bite
US tariffs have left companies like PlayStation-maker Sony to choose whether to pass higher costs on to consumers or take a hit to their profit Sony on Wednesday said it is bumping up the price of PlayStation 5 video game consoles by $50 in the United States due to a "challenging economic environment." Tariffs imposed by President Donald Trump hike the cost of goods brought into the U.S., leaving companies like Japan's Sony to decide whether to pass that on to consumers. "Similar to many global businesses, we continue to navigate a challenging economic environment," Sony Interactive Entertainment vice president of global marketing Isabelle Tomatis said in a post. After initially being threatened with a 25 percent hike, Japan negotiated a 15 percent tariff with the Trump administration. "As a result, we've made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the U.S." The new price for PS5 will be $550, with a "Digital Edition" priced at $500 and a Pro version for $750, according to Tomatis. In May, Sony warned it was considering tweaking prices in the U.S., estimating that tariffs could wind up costing the company about $680 million in the fiscal year. American companies are feeling the crunch, too. New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around $100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost. U.S. snack giant PepsiCo could increase prices of its soft drinks about 10 percent to mitigate effects of U.S. tariffs, particularly those on imported aluminum used to make soda cans, according to trade magazine Beverage Digest. Meanwhile, California-based energy drink maker Monster Beverages is considering raising prices due to a "complex and dynamic customs landscape," according to chief executive Hilton Schlosberg. The Commerce Department this week said the U.S. broadened its steel and aluminum tariffs, impacting hundreds more products that contain both metals such as child seats, tableware and heavy equipment. Since returning to the presidency, Trump has imposed tariffs on almost all U.S. trading partners. Though the impact of Trump's tariffs on consumer prices has been limited so far, economists warn that their full effects are yet to be seen. Some businesses have coped by bringing forward purchases of products they expected will encounter tariffs. Others have passed on additional costs to their consumers, or absorbed a part of the fresh tariff burden. © 2025 AFP
