Latest news with #ChevyVolt
Yahoo
10 hours ago
- Automotive
- Yahoo
As EVs stumble, automakers are bringing back a kind of hybrid that promises long range
Major automakers are set to resurrect a type of hybrid vehicle that seemed dead in the U.S. just a few years ago to meet a changing consumer demand landscape. Extended-range electric vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gas engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines. Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on combustion engines as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when examples of this type of vehicle — the Chevy Volt and Fisker Karma — were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from American consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019. That may seem impressive, but it's a blip in the overall U.S. new vehicle market, which saw about 16 million sales each year in that timeframe. The last EREV sold domestically was the i3, which BMW discontinued in 2022. While there are no new EREVs for sale in the U.S., several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman noted that it will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup truck and SUV under the Scout brand name starting in 2027. Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026, according to a spokesman. The vehicles are expected to have more than 560 miles of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. 'They do offer advantages versus 100% EVs when it comes to hauling and towing,' he said, 'allowing greater driving range without the need for a large capacity battery, as well as faster refueling.' James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors. But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 1,300 miles of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 100 miles on batteries alone, then hundreds more using gasoline. 'Range anxiety is still a factor when it comes to choosing an electric vehicle over an internal combustion vehicle,' said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research. 'EREVs, allay the range anxiety concern,' he said. These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. 'The actual charging experience of EREVs is very similar to that of BEVs,' Prasad said. 'So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations,' he added. Charging infrastructure is still lagging in many areas of the U.S., according to executive analyst Karl Brauer, which can make a full EV impractical for consumers. EREVs avoid that issue and may also be attractive to consumers who live in apartments or houses that lack charging stations. A recent report from McKinsey noted that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Another factor, according to McKinsey, is that both domestic and European manufacturers have seen how EREVs have gained sales momentum in China, a sign the technology may help to increase electrification adoption in their own marketplaces. 'We expect all levels of hybridization to increase production in North America throughout the decade,' said Eric Anderson, the associate director of Americas light vehicle powertrain forecasting for S&P Global Mobility. Hybrids, including EREVs, are a 'relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase, he said. While the EV vehicle market continued to grow last year, the pace of growth has slowed considerably. 'The BEV market is in the process of shifting from early adopters to a more price-conscious buyer,' Anderson said. Domestic sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, according to the U.S. Department of Transportation, a 37% increase. Plug-in hybrids grew 10% in the same period — from 293,578 to 321,774. By comparison, fully electric EVs saw 7% growth, from 1,164,638 to 1,247,656. While overall sales of traditional internal combustion engine (ICE) vehicles continues to dominate, its market share has fallen every year since 2015, according to Edmunds. Last year, ICE vehicle sales fell to 80.8% of total U.S. sales, down from 84% in 2023. Another attribute that might make EREVs popular with consumers is resale value. Hybrids — which includes EREVs and more common plug-in hybrids — depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type — dropping by 58.8% after five years, compared to the overall vehicle depreciation average of 45.6% and only 40.7% for hybrids, according to research from iSeeCars. 'Electric vehicle sales have been slowing on both the new and used market, with EVs sitting on dealer lots longer despite falling prices,' Brauer said. 'Consumers are showing increasing appreciation for hybrid vehicles, creating a friendly environment for automakers to introduce more plug-in hybrids as an intermediate step toward full electric vehicles.' Ram 1500 extended range hybrid pickup, set to come to market in early 2026, will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery | Stellantis This article was originally published on
NBC News
2 days ago
- Automotive
- NBC News
As EVs stumble, automakers are bringing back a kind of hybrid that promises long range
Major automakers are set to resurrect a type of hybrid vehicle that seemed dead in the U.S. just a few years ago to meet a changing consumer demand landscape. Extended-range electric vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gas engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines. Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on combustion engines as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when examples of this type of vehicle — the Chevy Volt and Fisker Karma — were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from American consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019. That may seem impressive, but it's a blip in the overall U.S. new vehicle market, which saw about 16 million sales each year in that timeframe. The last EREV sold domestically was the i3, which BMW discontinued in 2022. While there are no new EREVs for sale in the U.S., several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman noted that it will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup truck and SUV under the Scout brand name starting in 2027. Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026, according to a spokesman. The vehicles are expected to have more than 560 miles of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. 'They do offer advantages versus 100% EVs when it comes to hauling and towing,' he said, 'allowing greater driving range without the need for a large capacity battery, as well as faster refueling.' James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors. Range anxiety, and cost, still big factors in EV adoption But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 1,300 miles of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 100 miles on batteries alone, then hundreds more using gasoline. 'Range anxiety is still a factor when it comes to choosing an electric vehicle over an internal combustion vehicle,' said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research. 'EREVs, allay the range anxiety concern,' he said. These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. 'The actual charging experience of EREVs is very similar to that of BEVs,' Prasad said. 'So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations,' he added. Charging infrastructure is still lagging in many areas of the U.S., according to executive analyst Karl Brauer, which can make a full EV impractical for consumers. EREVs avoid that issue and may also be attractive to consumers who live in apartments or houses that lack charging stations. A recent report from McKinsey noted that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Another factor, according to McKinsey, is that both domestic and European manufacturers have seen how EREVs have gained sales momentum in China, a sign the technology may help to increase electrification adoption in their own marketplaces. 'We expect all levels of hybridization to increase production in North America throughout the decade,' said Eric Anderson, the associate director of Americas light vehicle powertrain forecasting for S&P Global Mobility. Hybrids, including EREVs, are a 'relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase, he said. While the EV vehicle market continued to grow last year, the pace of growth has slowed considerably. 'The BEV market is in the process of shifting from early adopters to a more price-conscious buyer,' Anderson said. Domestic sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, according to the U.S. Department of Transportation, a 37% increase. Plug-in hybrids grew 10% in the same period — from 293,578 to 321,774. By comparison, fully electric EVs saw 7% growth, from 1,164,638 to 1,247,656. While overall sales of traditional internal combustion engine (ICE) vehicles continues to dominate, its market share has fallen every year since 2015, according to Edmunds. Last year, ICE vehicle sales fell to 80.8% of total U.S. sales, down from 84% in 2023. Another attribute that might make EREVs popular with consumers is resale value. Hybrids — which includes EREVs and more common plug-in hybrids — depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type — dropping by 58.8% after five years, compared to the overall vehicle depreciation average of 45.6% and only 40.7% for hybrids, according to research from iSeeCars. 'Electric vehicle sales have been slowing on both the new and used market, with EVs sitting on dealer lots longer despite falling prices,' Brauer said. 'Consumers are showing increasing appreciation for hybrid vehicles, creating a friendly environment for automakers to introduce more plug-in hybrids as an intermediate step toward full electric vehicles.' Ram 1500 extended range hybrid pickup, set to come to market in early 2026, will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery | Stellantis
Business Insider
2 days ago
- Automotive
- Business Insider
Here's Why Automakers Are Reviving Extended-Range EVs despite Initially Flopping
Major automakers are bringing back a type of hybrid vehicle that had mostly disappeared from the U.S. a few years ago. Known as extended-range electric vehicles (EREVs), these plug-in hybrids work mainly like electric vehicles (EVs) by using a battery-powered motor to drive. However, they also have a small gas engine that acts like a generator to recharge the battery when needed, which is different from regular hybrids, where the gas engine helps power the car directly. As a result, EREVs have bigger batteries and smaller gas engines that focus more on electric driving with gas as a backup. Confident Investing Starts Here: Interestingly, it is worth noting that earlier models, such as the Chevy Volt (GM) and BMW i3 (BAMXF), never sold well, and EREVs have mostly vanished after 2022. Nevertheless, Ram (STLA) is planning an EREV pickup truck in 2026 that can go up to 690 miles using both gas and electric power. Volkswagen (VWAGY), Jeep, and Nissan (NSANY) are also working on their own EREV models. These vehicles are useful for people who drive long distances or live in places without easy access to charging, which helps reduce range anxiety while keeping costs lower than full EVs. In fact, EREVs are cheaper to make than full EVs because they use smaller batteries and are less complex than regular plug-in hybrids. They also hold their value better than gas cars or full EVs, which lose most of their resale value within five years. In addition, sales of hybrids and plug-in hybrids are growing faster than fully electric cars, especially as more buyers focus on price and practicality. Therefore, EREVs may help more drivers transition to electric vehicles while avoiding issues like limited charging infrastructure or high upfront costs. Which Auto Stock Is the Better Buy? Turning to Wall Street, out of the stocks mentioned above, analysts think that STLA stock has the most room to run. In fact, STLA's average price target of $10.98 per share implies more than 8% upside potential. On the other hand, analysts expect the least from BAMXF stock, as its average price target of $92.82 equates to a gain of 5%.
CNBC
3 days ago
- Automotive
- CNBC
As EVs stumble, automakers are bringing back a kind of hybrid that promises long range
Major automakers are set to resurrect a type of hybrid vehicle that seemed dead in the U.S. just a few years ago to meet a changing consumer demand electric vehicles (EREVs) are a form of plug-in hybrid that falls midway between traditional hybrids and full EVs. EREV cars and trucks rely on battery powered motors for propulsion (like an EV) but also have a relatively small gas engine to use as a generator to keep the batteries charged up (like a typical hybrid). A key difference between EREVs and other hybrids is the relative size of their batteries and gas engines. Mainstream hybrids and plug-in hybrids (PHEVs) like the Toyota Prius still rely on combustion engines as their main means of propulsion. Thus, they have proportionately smaller batteries, but substantial gas engines that are directly connected to their drivetrains to help move the car. EREVs are much more focused on the electric side of the equation, so they tend to have bigger batteries than other hybrids, but comparatively small gas engines that solely function as generators to top off the batteries when examples of this type of vehicle – the Chevy Volt and Fisker Karma – were introduced to the U.S market in 2011. These were followed by the BMW i3 and Cadillac ELR in 2014. But EREVs (also known as Range Extended Electric Vehicles, or REEVs), never attracted much interest from American consumers. The Volt was the most popular EREV by far, with GM selling 157,000 over nine years, until it ended production in 2019. That may seem impressive, but it's a blip in the overall U.S. new vehicle market, which saw about 16 million sales each year in that timeframe. The last EREV sold domestically was the i3, which BMW discontinued in 2022. While there are no new EREVs for sale in the U.S., several are in the pipeline. This includes an upcoming version of the Ram 1500 pickup truck, set to come to market in early 2026. A Ram spokesman noted that it will have the longest driving range the company has ever offered in a light-duty truck, up to 690 total miles between its gas engine and battery power. An EREV version of the Jeep Grand Wagoneer is also under development, according to the company. Volkswagen is planning to begin production of an EREV pickup truck and SUV under the Scout brand name starting in 2027. Hyundai Motors plans to introduce EREV versions of its mid-sized SUVs by the end of 2026, according to a spokesman. The vehicles are expected to have more than 560 miles of range, and be sold under the Hyundai and Genesis brands. In addition, a Nissan spokesman confirmed that the company is considering offering EREV options in its mid-size and larger SUVs. "They do offer advantages versus 100% EVs when it comes to hauling and towing," he said, "allowing greater driving range without the need for a large capacity battery, as well as faster refueling." James Martin, the director of consulting services at S&P Global Mobility, says one reason manufacturers are turning to EREVs is lower production costs. EREV use of smaller and less expensive batteries than full EVs allows manufacturers to keep their expenses down. EREVs are also less complex than plug-in hybrids, Martin said. PHEVs have two functioning propulsion systems and sophisticated controls to allow them to communicate with each other. Most EREVs, by contrast, are solely propelled by their electric motors. But one of the biggest advantages of EREVs is range. In China, where EREVs are gaining in popularity, the manufacturer BYD offers mid-sized sedans with more than 1,300 miles of claimed range. EREVs also alleviate range anxiety due to the ubiquity of gas stations. Consumers can just fill up with gasoline to charge the battery if a charging port is unavailable. The new EREVs can travel more than 100 miles on batteries alone, then hundreds more using gasoline. "Range anxiety is still a factor when it comes to choosing an electric vehicle over an internal combustion vehicle," said K. Venkatesh Prasad, senior vice president of research and chief innovation officer at the Center for Automotive Research. "EREVs, allay the range anxiety concern," he said. These hybrids may especially appeal to consumers who frequently travel long distances, and getting more consumers used to plugging in their vehicles might also appeal to manufacturers. "The actual charging experience of EREVs is very similar to that of BEVs," Prasad said. "So, the market adoption of EREVs is likely to be seen as a good ramp to future BEV purchase considerations," he added. Charging infrastructure is still lagging in many areas of the U.S., according to executive analyst Karl Brauer, which can make a full EV impractical for consumers. EREVs avoid that issue and may also be attractive to consumers who live in apartments or houses that lack charging stations. A recent report from McKinsey noted that EREVs could also combat cost concerns among consumers, noting that the smaller batteries can shave off as much as $6,000 in powertrain production costs, compared to BEVs. Another factor, according to McKinsey, is that both domestic and European manufacturers have seen how EREVs have gained sales momentum in China, a sign the technology may help to increase electrification adoption in their own marketplaces. "We expect all levels of hybridization to increase production in North America throughout the decade," said Eric Anderson, the associate director of Americas light vehicle powertrain forecasting for S&P Global Mobility. Hybrids, including EREVs, are a "relatively affordable way for consumers to move up the electrification ladder without a significant monthly payment increase, he said. While the EV vehicle market continued to grow last year, the pace of growth has slowed considerably. "The BEV market is in the process of shifting from early adopters to a more price-conscious buyer," Anderson said. Domestic sales of hybrids grew from 1,175,456 in 2023 to 1,609,035 in 2024, according to the U.S. Department of Transportation, a 37% increase. Plug-in hybrids grew 10% in the same period — from 293,578 to 321,774. By comparison, fully electric EVs saw 7% growth, from 1,164,638 to 1,247,656. While overall sales of traditional internal combustion engine (ICE) vehicles continues to dominate, its market share has fallen every year since 2015, according to Edmunds. Last year, ICE vehicle sales fell to 80.8% of total U.S. sales, down from 84% in 2023. Another attribute that might make EREVs popular with consumers is resale value. Hybrids - which includes EREVs and more common plug-in hybrids - depreciate less than EVs or traditional gas vehicles. Since depreciation is the most expensive part of car ownership, finding a vehicle that better retains its value can provide consumers with significant savings. By contrast, electric cars and trucks lose value faster than any other vehicle type – dropping by 58.8% after five years, compared to the overall vehicle depreciation average of 45.6% and only 40.7% for hybrids, according to research from iSeeCars. "Electric vehicle sales have been slowing on both the new and used market, with EVs sitting on dealer lots longer despite falling prices," Brauer said. "Consumers are showing increasing appreciation for hybrid vehicles, creating a friendly environment for automakers to introduce more plug-in hybrids as an intermediate step toward full electric vehicles."
Yahoo
02-04-2025
- Automotive
- Yahoo
Car buyers in Southern California scramble to beat 25% auto tariffs
After getting into a car accident last month, Debbie Boyd held out hope that her Chevy Volt could be repaired. But the car was declared a total loss on Monday, three days before President Trump's 25% tariff on imported cars and light trucks is set to go into effect. 'It's like the worst timing imaginable to be buying a car, and the uncertainty is killing me about what's going to happen and how it's going to affect prices,' said Boyd, 74, a retired attorney from Mar Vista. 'I anticipated driving my car for quite some time, sailing through the tariffs, but now I'm faced smack up against them.' She rushed to Culver City Toyota on Tuesday. 'I'm going to buy what's on the lot, the current inventory, just to avoid it," Boyd said. "Today, tomorrow, whatever they have available is what I will pick from. Obviously I need a car. I just wish it weren't now.' Boyd's anxiety was widely shared among many car buyers in Southern California who were scrambling to make their vehicle purchases before the tariff kicked in. The global trade war escalated further Wednesday afternoon, when Trump said during a Rose Garden event that he would impose 10% additional tariffs on all of the nation's trading partners; some countries will be hit with even higher rates. Calling it 'Liberation Day,' Trump said the day would 'forever be remembered as the day that American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again.' Read more: What Trump's planned tariffs on imported vehicles and auto parts means for car buyers Tariff-related price hike estimates vary depending on the vehicle, but most industry experts predict new cars will cost several thousand more. Erin Keating, an executive analyst at Cox Automotive, expects new vehicle prices to go up by 15% to 20%. On Wednesday, Anderson Economic Group forecast car prices to increase $2,500 to $20,000. Vehicles expected to be hit hardest, the group said, include luxury sedans and SUVs manufactured by Audi, BMW, Jaguar-Land Rover, Mercedes-Benz, Genesis and Lexus. With sticker prices expected to surge, many consumers across Southern California are trying to get deals done ahead of the Thursday deadline. 'It is a natural consumer behavior when people see an impending price change to race in and respond accordingly,' said Dominick Miserandino, a retail and consumer analyst and chief executive of Retail Tech Media Nexus. There is an element of panic contributing to the increase in demand, he said. 'You're seeing it on a micro scale whenever someone posts online that they found a cheaper place to get eggs," Miserandino said. At Culver City Honda, more than a dozen prospective car buyers were milling about the dealership lot or waiting in the lobby for an available sales representative mid-afternoon Tuesday. 'People are just rushing in here like crazy,' sales consultant Carlos Rodriguez said, a trend that began the day after Trump announced the autos tariff on March 26. 'We're used to selling let's say 10 cars a day; [now] we're getting into 20s. I know a lot of dealerships are hitting higher numbers.' Outside, a car shopper named Rochelle was checking out a white CR-V. "I should have done this a long time ago," she said. "I'm all for America first, but a lot of us don't like American cars." Roughly half of the 16 million cars, SUVs and light trucks that Americans bought last year were imported, according to the White House. Vehicles in the United States are imported from Mexico, Japan, South Korea, Canada, Germany and other countries. Read more: Trump declares 'Liberation Day,' announces sweeping global tariffs on 'friend and foe alike' The Trump administration says it is imposing tariffs to strengthen national security and spur the growth of American jobs. Heavily taxing imported cars, the thinking goes, would put pressure on automakers to build manufacturing plants in the U.S. 'America cannot just be an assembler of foreign-made parts — we must become a manufacturing powerhouse that dominates every step of the supply chain of industries that are critical for our national security and economic interests,' White House spokesman Kush Desai said in a statement. But building more domestic plants takes years, and some companies are wary of shifting their supply chains to the United States because of regulatory uncertainty, economists said. The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans and cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts and electrical components), with the possibility of expanding the duty to include additional parts if necessary. The tariff on auto parts is set to take effect by May 3. "President Trump is taking action to protect America's automobile industry, which is vital to national security and has been undermined by excessive imports threatening America's domestic industrial base and supply chains," the White House said. Car dealerships across Southern California — home to car enthusiasts and one of the nation's largest auto markets — are unsure about what comes next. Some are preparing for spikes and drops in business as the global trade war plays out. Rodriguez said Culver City Honda will have to increase prices, but he was hopeful that sales would remain strong as they did during the pandemic despite major supply-chain disruptions that led to skyrocketing car prices. It's not just the automotive industry that is contending with tariff tumult. Businesses of all kinds — farmers, home builders, tech companies, winemakers, restaurants and apparel retailers — are reeling from weeks of on-again, off-again confusion as Trump has announced a slew of levies, many of them aimed at the country's top three trading partners. Some have been imposed, while others have been postponed, modified or reversed. Read more: Stocking up for a cocktail crisis: How bars, distillers and tequila importers are bracing for a trade war Bolstering the economy was one of Trump's promises during the election, and tariffs are a core part of his strategy. He threatened to slap tariffs on Mexico, Canada and China on his first day back in office, explaining the decision as a way to crack down on illegal immigration and drugs. In March, he wrote in a post on Truth Social that the U.S. 'doesn't have Free Trade. We have 'Stupid Trade.'' 'The Entire World is RIPPING US OFF!!!' he said. The prolonged back-and-forth has unsettled companies, both those that import goods from abroad and those that sell their products to foreign clients. California's economy could be especially hard hit because of its heavy reliance on trade with China and Mexico, and because of its position as a global agricultural powerhouse. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
