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Yahoo
01-05-2025
- Automotive
- Yahoo
Mercedes details plans for US production investments in Alabama
By Nora Eckert DETROIT (Reuters) -Mercedes-Benz plans to begin producing a new vehicle at its Tuscaloosa, Alabama, plant in 2027, the company said Thursday, the latest in a series of investments carmakers have announced following U.S. President Donald Trump's aggressive auto tariffs. The German automaker didn't disclose which vehicle it would add to its Tuscaloosa plant, only saying it would be a "core vehicle segment" that would "deepen its commitment to the U.S." Trump's 25% levies on automotive imports have rocked the global automotive industry, although this week he offered a reprieve on some elements of the tariffs. An analysis released by the Center for Automotive Research in early April found that the 25% auto tariffs would increase costs by about $108 billion for automakers in the U.S. in 2025. Hyundai, GM and other automakers have boosted U.S. output or announced investments in response to the levies. Mercedes this week pulled its earnings guidance amid tariff uncertainty. The automaker is facing hurdles in all its major markets, from Trump's tariffs, to competition from fast-moving rivals in China and new CO2 emissions targets in the European Union. The company's Alabama plant currently produces the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.
Reuters
01-05-2025
- Automotive
- Reuters
Mercedes details plans for US production investments in Alabama
DETROIT, May 1 (Reuters) - Mercedes-Benz ( opens new tab plans to begin producing a new vehicle at its Tuscaloosa, Alabama, plant in 2027, the company said Thursday, the latest in a series of investments carmakers have announced following U.S. President Donald Trump's aggressive auto tariffs. The German automaker didn't disclose which vehicle it would add to its Tuscaloosa plant, only saying it would be a "core vehicle segment" that would "deepen its commitment to the U.S." Trump's 25% levies on automotive imports have rocked the global automotive industry, although this week he offered a reprieve on some elements of the tariffs. An analysis released by the Center for Automotive Research in early April found that the 25% auto tariffs would increase costs by about $108 billion for automakers in the U.S. in 2025. Hyundai, GM and other automakers have boosted U.S. output or announced investments in response to the levies. Mercedes this week pulled its earnings guidance amid tariff uncertainty. The automaker is facing hurdles in all its major markets, from Trump's tariffs, to competition from fast-moving rivals in China and new CO2 emissions targets in the European Union. The company's Alabama plant currently produces the GLE, GLS, GLE Coupe, Mercedes-Maybach GLS, as well as the EQE SUV, EQS SUV, and Mercedes-Maybach EQS SUV for all global markets.
Business Insider
27-04-2025
- Automotive
- Business Insider
Car Sales Spike as 25% Tariffs Loom for Auto Industry
Auto dealers across the country are reporting a surge in sales as consumers rush to purchase vehicles before the Trump administration's 25% tariff on imported cars takes full effect. With an additional 25% tariff on imported auto parts set to begin May 3, both foreign and domestic vehicles are expected to see significant price increases. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Current Market Impact Auto dealers are reporting an unprecedented uptick in purchasing as consumers try to avoid what could be a dramatic increase in prices. Industry analysts project tariffs will increase vehicle costs by $3,000 to $15,000 per car, regardless of where they're assembled. The Anderson Economic Group estimates the tariffs could cost American consumers $30 billion in the first year alone. At the same time, the Center for Automotive Research warns U.S. automakers could face $108 billion in additional costs by year's end. Automakers Strategic Response Automakers are scrambling to implement various strategies to manage these new tariffs. Several companies, including Hyundai (HYMTF), Kia (KIMTF), Toyota (TM), and Mercedes-Benz (MBGYY), have announced temporary price freezes, absorbing tariff costs to maintain customer loyalty. BMW (BMWKY) is following suit, but only until the end of April (for now). Other manufacturers are taking different approaches. Ford (F) and Stellantis (STLA) have launched employee pricing programs, extending significant discounts to all customers to offset anticipated price increases. Volkswagen (VWAGY) is choosing transparency, adding explicit import fees to invoices so customers can see precisely how tariffs impact pricing. Behind the scenes, many companies are accelerating shipments to build inventory before tariffs fully kick in, while simultaneously negotiating with suppliers to share the financial burden. Several manufacturers are also considering shifting more production to the U.S. or within North America, where USMCA-compliant parts from Canada and Mexico remain tariff-free for now. Economic Outlook Industry groups warn that these tariffs threaten more than just vehicle prices. The auto industry is highly interconnected, which means disruptions can spread quickly. One key supplier's failure could impact production lines across multiple companies. The ripple effects could include production stoppages, widespread layoffs, and potential bankruptcies among suppliers already operating on thin margins. Barring any sudden change in tariff policy (which the past few weeks have shown is entirely possible), vehicle prices are headed up, and current automaker strategies to soften the blow are likely temporary. Those who can't purchase before prices rise should prepare for a significantly more expensive automotive market in the months ahead.
Time of India
24-04-2025
- Automotive
- Time of India
Trump to exempt carmakers from some US tariffs, FT says
U.S. President Donald Trump is planning to spare carmakers from some tariffs following intense lobbying by industry executives over recent weeks, the Financial Times reported on Wednesday, citing a couple of people familiar with the matter. Car parts would be exempted from the tariffs Trump is imposing on imports from China over fentanyl. Car parts would also be exempt from the tariffs levied on steel and aluminium, in a "destacking" of the duties, according to the report. The exemptions, however, would leave in place the 25% tariff Trump imposed on all imports of foreign-made cars. The 25% duty on foreign-imported car parts, which is due to take effect on May 3, is also expected to continue, according to the report. The White House and the big-three automakers did not immediately respond to Reuters' requests for comment. The development comes as U.S. automakers scramble to find ways to tackle Trump's on-again, off-again tariffs, which are expected to raise car prices in the country, dent profits of carmakers and parts suppliers, and disrupt the long-stretched supply chains. The Center for Automotive Research published an analysis earlier this month saying that Trump's 25% tariffs on automotive imports will escalate costs for automakers by about $108 billion in 2025. Tesla, earlier in April, suspended plans to ship components from China for Cybercab and Semi electric trucks to the United States in light of rising tariffs, a person familiar with the matter told Reuters. This impacts the company's plan to start mass production of its much-anticipated models. Ford last week said it halted shipments of some of its vehicles to China, as it started facing the heat from retaliatory tariffs that have made vehicles face taxes as high as 150%.
Time of India
24-04-2025
- Automotive
- Time of India
Donald Trump to exempt carmakers from some US tariffs: Report
U.S. President Donald Trump is considering sparing carmakers from some tariffs following weeks of intense lobbying by auto industry executives, the Financial Times reported on Wednesday, citing sources familiar with the matter. According to the report, the Trump administration may exempt certain car parts imported from China from upcoming tariffs, even as it moves ahead with duties on imported steel and aluminum. Despite these potential exemptions, the White House is expected to maintain the 25% tariff Trump imposed on all foreign-made cars. A separate 25% duty on imported auto parts, scheduled to take effect on May 3, is also likely to remain in place, the FT added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ingin Tahu Tentang Diagnosis Limfoma? Dapatkan Info Selengkapnya Limfoma Baca Undo The development comes as the U.S. auto sector grapples with the uncertainty caused by the administration's shifting tariff policies. The levies are projected to increase car prices, squeeze margins for manufacturers and suppliers, and complicate global supply chains. Earlier this month, the Center for Automotive Research estimated that Trump's proposed 25% tariffs on automotive imports would raise costs for automakers by approximately $108 billion by 2025. Live Events Separately, Tesla has suspended plans to ship components for its Cybercab and Semi electric trucks from China to the U.S., due to the escalating tariff environment, a source familiar with the matter told Reuters. The move may delay the company's plans to begin mass production of the highly anticipated models. Ford, meanwhile, said last week it had halted shipments of certain vehicles to China as retaliatory tariffs pushed total taxes on some cars as high as 150%, severely impacting competitiveness in that market.
