Latest news with #Mexico-built
Chicago Tribune
10-06-2025
- Automotive
- Chicago Tribune
This month could test buyers' hunger for new vehicles as non-tariffed inventories dry up
Consumers' hunger for new vehicles persisted in May, but affordability concerns could cool sales this month as dealerships start running short on cars and SUVs delivered ahead of President Donald Trump's 25% tariffs. Ford Motor Co.'s U.S. sales increased 16% year-over-year last month. Hyundai Motor Co.'s grew 8%, while Kia Corp.'s rose 5%. Subaru Corp. and Mazda Motor Corp., however, did report declines of 10% and 19%, respectively. General Motors Co. and Stellantis NV will report second-quarter sales next month. Spring typically marks a surge in vehicle sales, as tax returns hit bank accounts and the weather warms up. But consumer sentiment has plunged to some of its lowest levels in decades amid frequently changing rules on tariffs, and concerns that vehicle prices could climb later this year have led some consumers to pull forward their purchases. S&P Global Mobility forecasted May sales up 2% compared to a year ago, but predicted sales were slowing to a seasonally adjusted annual rate of 15.7 million vehicles, down from 17.6 million from March to April. 'Consumer confidence is down, but the sales are not,' said Stephanie Brinley, associate director of research and analysis at S&P's AutoIntelligence. 'It doesn't usually work that way.' With inventories down and non-tariffed models increasingly eaten up, the 'affordability bullet has not come through yet. There's a little bit of wait-and-see for what automakers really do,' Brinley added, noting June could start revealing the direction companies choose to take. Some have given consumers confidence that they can wait a bit. Ford, through the July 4 weekend, is offering its customers thousands of dollars per vehicle in discounts typically reserved for its employees, though in early May, it did increase by up to $2,000 the price of its Mexico-built vehicles because of tariffs. Stellantis — the parent of Chrysler, Dodge, Jeep, Ram and other brands — is offering a similar employee discount program, which it has extended through June. Volkswagen AG has said it will hold to its current manufacturer's suggested retail prices through June. GM CEO Mary Barra has said the automaker doesn't expect major price increases. But imports are expected to slow, which will mean less availability of vehicles and encourage price increases, Charlie Chesbrough, senior economist at dealer digital services provider Cox Automotive Inc., said in a May forecast. 'As more tariffed products replace existing inventory over the summer,' he said, 'prices are expected to be pushed higher, leading to slower sales in the coming months.' Some dealers are already noticing some wariness. 'I haven't seen people this cautious since before, or during, the early stages of COVID,' said Jim Walen, the owner of Stellantis and Hyundai showrooms in Seattle. The ports in Seattle look 'empty,' he said. Major layoffs in Washington by Microsoft Corp. haven't helped business either. Stellantis' employee discount program, however, is a boon: 'Anytime you can affect the transaction price, it's a good thing.' Meanwhile, some dealers are going to pull back over revenue concerns, Walen said, but he's taking a different approach: 'We're very aggressive. We stock a lot, we're part of the community, we advertise a lot.' Some pull-ahead sales still seem to be occurring over tariff concerns, but other shoppers are dropping out of the market altogether, said Ivan Drury, director of insights at auto information website Inc. It may still be too early to determine if the circumstances will affect vehicle segments, but for now, there appears to be limited downgrading, as some customers would rather hold off than get a vehicle without certain features. There are also wide-ranging views on tariffs, how they work and the impact they will have, he added: 'Not everybody's on the same page.' There, however, are some trends. More consumers bought out their leases in May than in April, rather than leasing again. That could be a sign customers are seeking to limit increases to their monthly payments, but it also means they're stepping out of the market, Drury said. He added that inventory is declining, but there's still too much stock — more than 2.5 million vehicles are on dealer lots — to see substantial price increases. 'The last time when we had people really get hit with price increases, where it took them back, was when we were down to 1 million units,' Drury said. 'And that's where you start to see that crossover between consumers getting a deal versus consumers just dealing and saying, 'OK, fine, I'll pay MSRP. I'll pay above.' ' The share of electric vehicles in the market was forecasted to continue slipping. EV share was about 7% in March and April, and S&P was predicting it would be 6.8% in May. Ford EV sales last month were down by a quarter, driven by decreases in the F-150 Lightning pickup and Transit commercial van. Trump has pulled federal funding for EV charging infrastructure and directed his administration to reevaluate greenhouse gas tailpipe emission regulations and incentives that could be construed as an 'EV mandate.' The U.S. Senate last month also removed a waiver that enabled California and a contingent of states to enforce stricter zero-emission requirements on passenger vehicle sales. The result is an uncertain policy environment around EVs. 'They've been trending a little bit down the whole year,' Brinley said. 'It may be some people looking for an EV in January bought, expecting the incentives to go away, but they're not afraid of that anymore.' Rhett Ricart, who has eight new-vehicle storefronts for brands from Ford and Chevrolet to Nissan and Mitsubishi in and near Columbus, Ohio, said tariffs and policy changes are on the minds of EV buyers, but he otherwise describes sales as normal. 'A possible tariff scare people had doesn't seem to exist,' Ricart said, adding about expectations that Trump or the judicial system will offer some clarity on import taxes: 'For any jitteriness, we will hopefully find out if the tariffs stick soon.'
Miami Herald
06-06-2025
- Automotive
- Miami Herald
This month could test buyers' hunger for new vehicles as non-tariffed inventories dry up
Consumers' hunger for new vehicles persisted in May, but affordability concerns could cool sales this month as dealerships start running short on cars and SUVs delivered ahead of President Donald Trump's 25% tariffs. Ford Motor Co.'s U.S. sales increased 16% year-over-year last month. Hyundai Motor Co.'s grew 8%, while Kia Corp.'s rose 5%. Subaru Corp. and Mazda Motor Corp., however, did report declines of 10% and 19%, respectively. General Motors Co. and Stellantis NV will report second-quarter sales next month. Spring typically marks a surge in vehicle sales, as tax returns hit bank accounts and the weather warms up. But consumer sentiment has plunged to some of its lowest levels in decades amid frequently changing rules on tariffs, and concerns that vehicle prices could climb later this year have led some consumers to pull forward their purchases. S&P Global Mobility forecasted May sales up 2% compared to a year ago, but predicted sales were slowing to a seasonally adjusted annual rate of 15.7 million vehicles, down from 17.6 million from March to April. "Consumer confidence is down, but the sales are not," said Stephanie Brinley, associate director of research and analysis at S&P's AutoIntelligence. "It doesn't usually work that way." With inventories down and non-tariffed models increasingly eaten up, the "affordability bullet has not come through yet. There's a little bit of wait-and-see for what automakers really do," Brinley added, noting June could start revealing the direction companies choose to take. Some have given consumers confidence that they can wait a bit. Ford, through the July 4 weekend, is offering its customers thousands of dollars per vehicle in discounts typically reserved for its employees, though in early May, it did increase by up to $2,000 the price of its Mexico-built vehicles because of tariffs. Stellantis - the parent of Chrysler, Dodge, Jeep, Ram and other brands - is offering a similar employee discount program, which it has extended through June. Volkswagen AG has said it will hold to its current manufacturer's suggested retail prices through June. GM CEO Mary Barra has said the automaker doesn't expect major price increases. But imports are expected to slow, which will mean less availability of vehicles and encourage price increases, Charlie Chesbrough, senior economist at dealer digital services provider Cox Automotive Inc., said in a May forecast. "As more tariffed products replace existing inventory over the summer," he said, "prices are expected to be pushed higher, leading to slower sales in the coming months." Some dealers are already noticing some wariness. "I haven't seen people this cautious since before, or during, the early stages of COVID," said Jim Walen, the owner of Stellantis and Hyundai showrooms in Seattle. The ports in Seattle look "empty," he said. Major layoffs in Washington by Microsoft Corp. haven't helped business either. Stellantis' employee discount program, however, is a boon: "Anytime you can affect the transaction price, it's a good thing." Meanwhile, some dealers are going to pull back over revenue concerns, Walen said, but he's taking a different approach: "We're very aggressive. We stock a lot, we're part of the community, we advertise a lot." Some pull-ahead sales still seem to be occurring over tariff concerns, but other shoppers are dropping out of the market altogether, said Ivan Drury, director of insights at auto information website Inc. It may still be too early to determine if the circumstances will affect vehicle segments, but for now, there appears to be limited downgrading, as some customers would rather hold off than get a vehicle without certain features. There are also wide-ranging views on tariffs, how they work and the impact they will have, he added: "Not everybody's on the same page." There, however, are some trends. More consumers bought out their leases in May than in April, rather than leasing again. That could be a sign customers are seeking to limit increases to their monthly payments, but it also means they're stepping out of the market, Drury said. He added that inventory is declining, but there's still too much stock - more than 2.5 million vehicles are on dealer lots - to see substantial price increases. "The last time when we had people really get hit with price increases, where it took them back, was when we were down to 1 million units," Drury said. "And that's where you start to see that crossover between consumers getting a deal versus consumers just dealing and saying, 'OK, fine, I'll pay MSRP. I'll pay above.' " The share of electric vehicles in the market was forecasted to continue slipping. EV share was about 7% in March and April, and S&P was predicting it would be 6.8% in May. Ford EV sales last month were down by a quarter, driven by decreases in the F-150 Lightning pickup and Transit commercial van. Trump has pulled federal funding for EV charging infrastructure and directed his administration to reevaluate greenhouse gas tailpipe emission regulations and incentives that could be construed as an "EV mandate." The U.S. Senate last month also removed a waiver that enabled California and a contingent of states to enforce stricter zero-emission requirements on passenger vehicle sales. The result is an uncertain policy environment around EVs. "They've been trending a little bit down the whole year," Brinley said. "It may be some people looking for an EV in January bought, expecting the incentives to go away, but they're not afraid of that anymore." Rhett Ricart, who has eight new-vehicle storefronts for brands from Ford and Chevrolet to Nissan and Mitsubishi in and near Columbus, Ohio, said tariffs and policy changes are on the minds of EV buyers, but he otherwise describes sales as normal. "A possible tariff scare people had doesn't seem to exist," Ricart said, adding about expectations that Trump or the judicial system will offer some clarity on import taxes: "For any jitteriness, we will hopefully find out if the tariffs stick soon." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
03-06-2025
- Automotive
- Yahoo
Auto tariff price hikes: When is the best time to buy a car?
According to an analysis from the Anderson Economic Group, auto and auto-part tariffs could add at least $2,000 to the price of vehicles. However, many automakers are absorbing costs or raising prices modestly. Kelley Blue Book executive editor Brian Moody joins Wealth to explain that buyers already in the market should act soon, as used car prices are set to rise with shrinking inventory. To watch more expert insights and analysis on the latest market action, check out more Wealth here. 25% tariffs on imported cars and car parts are expected to create cost burdens of at least $2,000 per vehicle, according to an analysis from the Anderson Economic Group. And that estimate pushes upwards of $15,000 for certain electric vehicles and European and Asian luxury cars. Car companies are responding in kind. Hyundai, weighing 1% price increases across the board, according to Bloomberg. And starting July 5th, Ford will start raising prices on three Mexico-built models. Here with more, we've got Brian Moody, executive editor over at Kelly Blue Book. Great to have you here with us, Brian. Are we seeing some automakers mull price increases due to the tariff environment and how much do you expect will actually be passed on to the consumer? Well, it might vary model by model, but what we're seeing right now is that there hasn't really been much of a price increase on new cars. In fact, year-over-year, it's about flat, less than 1% of an increase on new cars. That's the average transaction price. But that's because certain automakers have chosen to sort of, you know, absorb that increase, while other automakers, Nissan specifically, have actually lowered the prices on specific models that are built here in the US. So some prices will go up, the ones that would be the most greatly impacted would be a car that arrives here to the US, almost already completely built. That's the car that's going to incur the largest tariff. And so, which companies are best navigating and best positioned, I guess, going forward to also navigate that tariff risk as it relates to the consumer price? Well, Hyundai Group is one that's positioned well, even though they are considering a 1% price increase across the board. But they do have a relatively new plant in Savannah, Georgia, which is positioned to build cars and SUVs for all of their brands, and that could be a wise move. Now, that was already in play long before the current crisis or the current administration. So that could have ended up being a wise move. Kia is also in a good position. Mercedes-Benz has actually said that they have their plant in Alabama, where they're going to ramp up production of models that maybe they did make outside the US, and they're going to build them here in the US. And those companies that can do that, that have the option of doing that, are going to be in the best position. Also, Ford builds a very large majority of their cars here in the US. So when is the best time to buy a car in this current environment right now? Well, if you're already in the market for a new car, and when I say that, I mean, don't let headlines move you into the new car market. Let's say you're already there, your lease is ending, you've had a wrecked car or your car just won't last any longer. Make that process speed up just a little bit. Don't jump in because you're afraid about what the prices are going to be if you have a good car now, but if you're already in the market, speeding that process up will help. I just don't see how waiting can help in any way, especially since we know used car prices were already going to go up, no matter what. And so, what is the outlook for the summer that you're anticipating? Um, gradually increasing used car prices, gradually shrinking used car inventory, a relatively healthy new car inventory, but prices, prices will gradually creep up on many cars that you typically thought of as low price. So what we don't know is how they're going to spread out the price increases. What we do know is that there probably will be increases. While we have you, Brian, we're also keeping tabs on the Republican tax bill that passed the House headed to the Senate. In the bill, there is a proposal for a tax break for car purchases. Americans would be able to deduct up to $10,000 a year in eligible auto loan interest. So how impactful could this be for buyers and what are some of the details from the best assessment that you've been able to kind of put together? Right. So that could be a very good thing for consumers. And here's why. The affordability of new cars has been decreasing, meaning they're just becoming more expensive, not just the price of the car, but the price of purchasing credit to buy that car, and the price of servicing and the price of parts. So that kind of relief could move more people into the market. You should still be reasonable and get a low-priced car based on your budget, but that kind of thing is the sort of hidden fee that many consumers don't like, the interest rate or the service plan. So it could help greatly. Another place to look for consumers is the used electric car market. That's a great place for some bargains. What are you making right now of just the sentiment among car brands, especially as we think about the EV landscape and how Tesla has been losing some of its, its luster internationally? Is that something that's also transpiring here domestically? Yes. Well, yes, but this past month, GM, Nissan, and Tesla had pretty good months because there was increases in their electric vehicles. And remember, Tesla only sells electric vehicles. But yes, Tesla market share will continue to go down and that's simply because there's more options. Think about when Tesla first introduced the Model S and the Model X, you know, years ago, there wasn't much competition. Today, there's plenty of competition from brands like Nissan, Ford, Honda, and others. Brian, great to see you. Thanks so much for taking the time here with us today. Thank you.
The Sun
13-05-2025
- Automotive
- The Sun
US car prices higher in April after tariffs hit
DETROIT: U.S. new-vehicle prices surged in April, data released on Monday showed, a sign that the effects of President Donald Trump's auto-tariff measures are rippling through the car market. The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive's Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns. Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada, but few have raised sticker prices. Some, like Hyundai ( Ford (F.N) and Jeep-maker Stellantis ( have even rolled out deals to reassure buyers and keep sales flowing. Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox. Yet even if carmakers hold prices steady, consumer expectations that tariffs will eventually send prices higher likely led to inflation on certain models, said Cox executive analyst Erin Keating. 'Those models got more demand, and therefore the local pricing dynamics at the dealership level likely helped those prices go higher.' Ford is charging more for its Mexico-built products, Reuters first reported last week. Some models of the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will cost as much as $2,000 more, according to a notice sent to dealers. Wholesale used-vehicle prices rose in April, according to Cox's Manheim Used Vehicle Value Index, which increased 4.9% to 208.2 from a year ago, up 2.7% from March. Promotions have kept prices steady overall, some automakers said. Consumer-incentive programs are still very strong, said Todd Szott, dealer partner at Szott Automotive Group, which has Ford, Stellantis and Toyota dealerships in Metro Detroit. 'Pricing is fairly stable at this point.' Sales incentives on new cars as a percentage of transaction prices, a measure of discounts and promotions, fell to the lowest since the summer of 2024, Cox said. A dip in the number of vehicles sitting on dealer lots could point to upward pressure on prices in coming months. On a recent webinar with the Automotive Press Association, Cox Chief Economist Jonathan Smoke noted that fewer than 2.6 million vehicles are on dealer lots, and that supply could fall even further as sales surge and importers reduce deliveries. Paul Zimmermann, partner-owner at Matick Automotive Group of Michigan, which owns GM and Toyota stores, said vehicle stocks are getting lighter in some areas after a robust April. 'I do have some concerns just in terms of the pipeline,' he said. 'It's running healthy right now, but we need to make sure that there's no blip.' Cox previously estimated new vehicles directly affected by a 25% tariff could cost 10% to 15% more, while the prices on vehicles not affected by the full tariff could rise 5%. Keating does not expect double-digit percentages soon, but maybe over the long term. Automakers may use model-year changeover time in the summer to adjust prices, she added.
Yahoo
12-05-2025
- Automotive
- Yahoo
US car prices higher in April after tariffs hit
By Kalea Hall DETROIT (Reuters) -U.S. new-vehicle prices surged in April, data released on Monday showed, a sign that the effects of President Donald Trump's auto-tariff measures are rippling through the car market. The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive's Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns. Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada, but few have raised sticker prices. Some, like Hyundai, Ford and Jeep-maker Stellantis, have even rolled out deals to reassure buyers and keep sales flowing. Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox. Yet even if carmakers hold prices steady, consumer expectations that tariffs will eventually send prices higher likely led to inflation on certain models, said Cox executive analyst Erin Keating. "Those models got more demand, and therefore the local pricing dynamics at the dealership level likely helped those prices go higher." Ford is charging more for its Mexico-built products, Reuters first reported last week. Some models of the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will cost as much as $2,000 more, according to a notice sent to dealers. Wholesale used-vehicle prices rose in April, according to Cox's Manheim Used Vehicle Value Index, which increased 4.9% to 208.2 from a year ago, up 2.7% from March. Promotions have kept prices steady overall, some automakers said. Consumer-incentive programs are still very strong, said Todd Szott, dealer partner at Szott Automotive Group, which has Ford, Stellantis and Toyota dealerships in Metro Detroit. "Pricing is fairly stable at this point." Sales incentives on new cars as a percentage of transaction prices, a measure of discounts and promotions, fell to the lowest since the summer of 2024, Cox said. A dip in the number of vehicles sitting on dealer lots could point to upward pressure on prices in coming months. On a recent webinar with the Automotive Press Association, Cox Chief Economist Jonathan Smoke noted that fewer than 2.6 million vehicles are on dealer lots, and that supply could fall even further as sales surge and importers reduce deliveries. Paul Zimmermann, partner-owner at Matick Automotive Group of Michigan, which owns GM and Toyota stores, said vehicle stocks are getting lighter in some areas after a robust April. "I do have some concerns just in terms of the pipeline," he said. "It's running healthy right now, but we need to make sure that there's no blip." Cox previously estimated new vehicles directly affected by a 25% tariff could cost 10% to 15% more, while the prices on vehicles not affected by the full tariff could rise 5%. Keating does not expect double-digit percentages soon, but maybe over the long term. Automakers may use model-year changeover time in the summer to adjust prices, she added.
