Latest news with #RandyParker
Boston Globe
4 days ago
- Automotive
- Boston Globe
Car companies are paying tariffs so you don't have to
'We haven't raised prices due to tariffs, and that's still our mantra,' Randy Parker, chief executive of Hyundai and Genesis Motor North America, said in an interview this month. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up That is good news for Trump and Republicans in Congress because it insulates them from the political consequences of higher sticker prices, which would also contribute to inflation. Advertisement Carmakers 'will try to hold prices and focus on cost reduction for as long as they can,' said Lenny LaRocca, a partner at KPMG who leads the consulting firm's work with the auto industry. But, LaRocca said, 'clearly it's not sustainable.' He predicted that automakers would start raising prices significantly early next year. No car company is immune. Even those that make most of their vehicles in the United States use imported parts that can amount to more than half the value of some cars. In recent weeks General Motors, Toyota, Ford Motor, Stellantis, Tesla, Mercedes-Benz and Volkswagen have all blamed tariffs for declines in profit. Advertisement Ford, which makes most of its cars in the United States, expects retail prices for its vehicles to rise just 1% this year, Sherry House, the chief financial officer, said last month during a conference call with reporters. Mercedes-Benz vehicles at the Port of Baltimore, where new vehicle imports are processed before distribution to dealerships. Stephanie Scarbrough/Associated Press But that's not because the tariffs aren't having an effect. Import duties subtracted $800 million from Ford's profit in the second quarter, leading to a slight loss for the period. For the whole year, Ford estimated that tariffs would cost the company $2 billion. General Motors, the largest U.S. carmaker, said last month that tariffs would cost the company as much as $5 billion for the full year, although it hoped to offset about a third of that amount by cutting costs and moving some manufacturing to the United States. Still, the company expects retail prices to rise 1% or less this year, Paul Jacobson, chief financial officer of GM, told investors last month. Toyota, which makes many cars in the United States but also imports them from Japan, Mexico and Canada, said Thursday that tariffs would cost it $9.5 billion. A day earlier, Honda pegged its tariff cost at $3 billion. Tariffs and sinking profits could make it harder for carmakers to do what Trump wants them to do -- relocate assembly lines to the United States from other countries. Companies will have less money to invest in new factories and equipment. The Trump administration maintains that deregulation, tax deductions for equipment purchasing and other measures will be positive for the industry. Advertisement 'Two things can be accomplished at once: We can lower costs for everyday Americans while restoring American auto dominance,' Kush Desai, a White House spokesperson, said in an email. 'The administration is working closely with the auto industry to deliver on both fronts.' Car prices as measured by U.S. officials declined slightly in June, Desai pointed out, 'despite months of autos, auto parts, steel and aluminum tariffs being in place.' Workers gave final inspections to vehicles at a General Motors plant in Spring Hill, Tenn. BRETT CARLSEN/NYT Others see signs that prices are beginning to creep higher. Cox Automotive estimates that tariffs will add at least $5,000 to the cost of imported cars on an annual basis. Even for cars manufactured in the United States, tariffs on components add about $1,000, not including the 50% duties that Trump has imposed on imported steel and aluminum. By the end of the year, prices could be 8% higher, Cox says, pushing the average selling price of a new car above $50,000. Higher prices would fall hardest on less affluent consumers. Many of the least expensive cars are imported, like the Chevrolet Trax made in South Korea or the Nissan Versa made in Mexico. Some car buyers will be able to afford only used models. And higher demand for pre-owned vehicles will push up their prices, too. Adding to the pain, buyers of used cars often pay much higher interest on loans, which can exceed 20% for people with less-than-stellar credit records. The cost of repairs and parts will also rise. So far the price increases have been modest, said Michael Holmes, co-chief executive of Virginia Tire and Auto. The chain of auto repair and maintenance shops adds a tariff surcharge to prices to reflect the additional cost. That can range from 50 cents or so for an air filter to around $5 for a tire. Advertisement But the surcharges could rise depending on where tariffs on parts from Mexico and Canada end up, he said. His biggest problem, Holmes said, is staying abreast of shifting trade policy. 'You get exhausted trying to figure out where all these tariffs are,' he said. Trump policies have some financial benefits for carmakers. The Republican domestic policy bill passed last month eliminated penalties for violating clean air standards. That angered environmental groups but allows carmakers to build more big SUVs and pickups, which tend to have the highest profit margins. The end of those penalties has also freed established carmakers from having to buy clean air credits if they fall short of emissions targets. That will save GM and others hundreds of millions of dollars, but comes at the expense of companies that have lots of credits to sell, like Tesla and Rivian, because they make only electric vehicles that emit nothing from tailpipes. Car executives are hopeful that the Trump administration will take further steps to ease the impact of tariffs. 'We're having very constructive conversations with them to ensure a more level playing field,' House, the Ford chief financial officer, told reporters this month. But Trump continues to threaten substantial tariffs on Mexico and Canada and has yet to reach a permanent trade deal with either. Both countries are critical suppliers of vehicles and parts and are important destinations for parts and vehicles made in the United States. The policy bill also contained a measure designed to stimulate demand for cars. The provision lets taxpayers deduct from their taxes the interest they pay on loans used to buy cars assembled in the United States. But the value of the deduction will be relatively small, in the hundreds of dollars for most people. Advertisement 'We don't think it's really going to drive demand,' said Erin Keating, executive analyst at Cox Automotive. This article originally appeared in
Yahoo
01-08-2025
- Automotive
- Yahoo
Hyundai Motor America Reports Record-Breaking July 2025 Sales
Best-ever July total and retail sales; total sales increased 15%; retail sales climb 18% All-time monthly records for Elantra HEV, Palisade, IONIQ 5, and Santa Fe family Electrified total sales jump 50% in July All-new 2026 Palisade with bold new features hitting dealers now FOUNTAIN VALLEY, Calif., Aug. 1, 2025 /PRNewswire/ -- Hyundai Motor America reported July total sales of 79,543 units, a 15% increase compared with July 2024 and an all-time July record. Hyundai set total sales records in July for Elantra HEV, Elantra N, Santa Fe HEV, Palisade, IONIQ 5, and Santa Fe family. Electrified vehicle sales reached new heights, jumping 50% compared with July 2024. Total sales records for EV, HEV, and electrified vehicles reinforce Hyundai's momentum in sustainable mobility. Hyundai retail sales rose 18% to 73,064 units compared to July 2024. Retail sales of electrified vehicles represented 32% of the retail sales mix, with IONIQ 5 retail sales increasing 71%. Retail sales for the Santa Fe family (+54%) and Palisade (+59%) also climbed. This was also the best-ever month in retail sales for Santa Fe HEV (152%). Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service "Hyundai delivered an outstanding July, setting an all-time July total sales record with 79,543 units, up 15% year-over-year," said Randy Parker, president and CEO of Hyundai Motor North America. "We achieved new records across multiple nameplates, including Elantra HEV, Elantra N, Santa Fe HEV, Palisade, IONIQ 5, and the Santa Fe family, while electrified vehicle sales surged 50% compared to last year. Retail sales climbed 18%, highlighted by strong demand for Santa Fe and Palisade, and a 71% jump in IONIQ 5 retail sales. These results reflect Hyundai's momentum in sustainable mobility and our ability to deliver an innovative lineup that continues to resonate with customers." July Total Sales SummaryJul-25 Jul-24 % Chg 2025 YTD 2024 YTD % Chg Hyundai 79,543 69,202 +15 % 518,823 468,725 +11 % July Product and Corporate Activities Hyundai Motor Group Recognized by TIME on 2025 Most Influential Companies List: Hyundai Motor Group has been recognized by TIME magazine as an "Automotive Darkhorse" in "The 100 Most Influential Companies of 2025," marking the Group's first appearance on the prestigious annual list. Tucson Hybrid Named One of the 2025 Best Cars for Car Seats by The Hyundai Tucson Hybrid has been awarded one of the Best Cars for Car Seats by To qualify, vehicles had to score well in Car Seat Checks evaluation where certified child safety seat installation technicians conduct hands-on tests of a car's Latch system and check the vehicle's ability to accommodate different car seats. 2026 Palisade Releases Compelling Pricing Strategy: Hyundai announced pricing for its all-new 2026 Palisade three-row flagship SUV, starting at only $38,935 MSRP. The new Palisade is bigger, better and goes further than its critically acclaimed predecessor, and its SUV competition. IONIQ 6 N Debuts at Goodwood Festival of Speed, Setting New Benchmark for High-Performance EVs: Hyundai Motor Company unveiled IONIQ 6 N to the world at the Goodwood Festival of Speed, marking a pivotal milestone in Hyundai N's electrification journey. Hyundai N is once again redefining the boundaries of high-performance electrification with the debut of the IONIQ 6 N. IONIQ 5 XRT Named Best U.S.-Built Sports Vehicle of the Year by American Cars And Racing: Hyundai's IONIQ 5 XRT has been named the Best U.S.- Built Sports Vehicle of the Year by American Cars And Racing (ACAR). The publication's awards honor the best new or significantly updated 2025-model-year vehicles assembled in the U.S. The American Cars And Racing's editorial team determined the winning vehicles by assessing their innovation, appeal, value, and overall excellence. Hyundai Launches New Customer Rewards Program: As part of its commitment to an excellent customer experience, Hyundai Motor America is launching a new customer benefits program, Hyundai Rewards. The new program offers new and current Hyundai owners discounts on new vehicles and Bluelink™ services. Hyundai Secures Hard-Fought Podium Finish at Demanding Canadian Tire Motorsport Park: Hyundai teams navigated a fiercely competitive and challenging Canadian Tire Motorsport Park 120 culminating in a remarkable second-place finish for Eric Powell and Tyler Gonzalez in the No. 99 Victor Gonzalez Racing Team (VGRT) Hyundai Elantra N TCR. IONIQ 5 Completes Epic EV Road Trip to the Arctic Ocean: IONIQ 5 owner Patrick Nadeau has reached the destination of his epic EV journey to the Arctic Circle. Hyundai and Genesis Launch Texas Flood Relief Program for Kerrville and Surrounding Communities: In response to the devastating floods impacting Kerrville and surrounding communities in Texas, Hyundai and Genesis Motor America launched a comprehensive disaster relief initiative to support residents, first responders, and affected vehicle owners. The program includes a $150,000 donation, direct customer relief, and coordinated assistance with community partners and government agencies. Model Total Sales Vehicles Jul-25 Jul-24 % Chg 2025 YTD 2024 YTD % Chg Elantra 12,354 13,764 -10 % 87,122 76,053 +15 % Ioniq 5 5,818 3,416 +70 % 24,910 22,144 +12 % Ioniq 6 949 778 +22 % 7,271 7,690 -5 % Ioniq 9 1,073 0 - 2,086 0 - Kona 6,289 6,713 -6 % 46,117 53,252 -13 % Nexo 0 2 -100 % 2 79 -97 % Palisade 13,235 8,635 +53 % 70,432 62,382 +13 % Santa Cruz 2,311 2,615 -12 % 16,532 20,560 -20 % Santa Fe 14,128 8,989 +57 % 79,206 65,611 +21 % Sonata 4,413 5,755 -23 % 37,399 36,902 +1 % Tucson 16,406 16,135 +2 % 129,716 108,281 +20 % Venue 2,567 2,400 +7 % 18,030 15,771 +14 % Hyundai Motor AmericaHyundai Motor America offers U.S. consumers a technology-rich lineup of cars, SUVs, and electrified vehicles, while supporting Hyundai Motor Company's Progress for Humanity vision. Hyundai has significant operations in the U.S., including its North American headquarters in California, the Hyundai Motor Manufacturing Alabama assembly plant, the all-new Hyundai Motor Group Metaplant America, and several cutting-edge R&D facilities. These operations, combined with those of Hyundai's 850 independent dealers, contribute $20.1 billion annually and 190,000 jobs to the U.S. economy, according to a published economic impact report. For more information, visit Hyundai Motor America on Twitter | YouTube | Facebook | Instagram | LinkedIn | TikTok View original content to download multimedia: SOURCE Hyundai Motor America Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
02-07-2025
- Automotive
- Miami Herald
Tariffs couldn't stop one Asian car brand from record 2025 sales
Tariffs have driven all of the action in the automotive industry during the first half of 2025. Auto dealers' customer traffic index rose to 37 from 33 in Q1 last year. Franchised dealers reported a 10-point increase in in-person visits, the largest increase since the metric was introduced in Q3 2022, according to Cox Automotive. Due to the anticipation of 25% duties on all auto imports, car buyers flocked to dealer lots during the early months of the year. Once the tariffs officially took effect on April 3, buyer behavior didn't change. Related: General Motors makes $4 billion tariff move In recent months, car dealers have increased their incentives to attract customers. Bank of America saw consumer vehicle loan applications peak in April. However, the majority of automakers reported reducing incentive spending in May. Dealers like Volkswagen, Mazda, Land Rover, Volvo, and BMW all reduced incentive spending by more than 10%. Incentives were also notably lower month over month for Stellantis. U.S. consumers have been resilient despite the dwindling incentives offered, partially because automakers, at President Donald Trump's behest, have only raised prices modestly. And when they raise prices, they make sure not to blame it on the tariffs. Image source:A buyer's market has driven the auto industry so far this year, and car companies, both domestic and foreign, are benefiting from the environment. On Tuesday, Hyundai Motor America, the Korean brand's American arm, reported a year-over-year 3% increase in June sales to 69,702 units. "We just wrapped up the strongest first half in Hyundai's history, driven by sales growth across our lineup," said Hyundai Motor North America CEO Randy Parker. The highly regarded 276 hp Elantra N and Santa Fe hybrid EV set new sales records for the month, with each seeing sales jump 33% and 39%, respectively. Hyundai (HYMLF) sold 439,20 vehicles worldwide in the first half of the year, a 10% year-over-year increase that was capped by a 10% second quarter increase to 235,726 units. Related: Car buyers have a lot riding on the 'Big, Beautiful Bill' Retail sales rose 5% in the first half, and total electrified vehicle sales rose 20% year over year. "We're proud of our progress in the current market and ready to carry that energy into the second half of the year. With industry-leading recognition for quality and safety, a growing lineup of American-made vehicles, and award-winning marketing campaigns, we're continuing to build momentum with every mile," Parker said. Hyundai has had enormous success in recent years. It's no secret that the U.S. auto industry has become dominated by foreign brands over the past few decades. While General Motors still has the highest market share at 17% and Ford ranks third with a 13% market share, foreign models from Asia round out the top five, according to Cox Automotive data. More automotive news: Car buyers should be nervous about this emerging trendCar buyers, dealers are both shocked by latest price trendsFire risk recall affects 60,000 vehicles from US car company Toyota ranks second with 15% U.S. market share, while Korean brand Hyundai ranks fourth with 11%. Toyota's fellow Japanese brand, Honda, is fifth in the market, with 9%. Hyundai only started selling in the U.S. in 1986, so it is no small feat that it has a larger market share than Stellantis, whose Chrysler brand has been around in the U.S. since 1925. Hyundai operates two major auto manufacturing plants in the United States, one in Montgomery, Alabama, and a new facility that just opened in March in Ellabell, Georgia. The company is also building a $5.8 billion steel plant in Louisiana that will provide the steel for its U.S. plants. Hyundai builds the Santa Fe Hybrid, Elantra sedan, Tuscon SUV and Santa Cruz SAV. The Georgia facility is dedicated to producing between 300,000 and 500,000 EVs annually. Related: President's latest interview gives US automakers much-needed boost The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CBC
04-06-2025
- Automotive
- CBC
Ford, Hyundai post higher U.S. sales in May on strong SUV, truck demand
Social Sharing U.S. auto sales for Ford Motor and South Korea's Hyundai Motor rose in May, the companies reported on Tuesday, as concerns over potential tariff-related price hikes prompted buyers to act fast on their purchases of cars and SUVs. U.S. President Donald Trump's tariff policies have fuelled uncertainty across the auto industry, driving up supply costs, pressuring margins and pushing some automakers to pass the expenses on to consumers. The sales also got a boost from offers and trade-in deals for affordable pickups and crossovers. Ford's overall sales rose to 220,959 units in May from 190,014 units a year ago. The Detroit automaker's F-Series truck sales climbed 15 per cent to 79,817 vehicles during the month. Ford in April extended discounted rates to its customers that are generally reserved for its workers to keep sales moving, although the automaker also hiked prices on three of its Mexico-made products in May. Hyundai also reported an 8 per cent year-on-year rise in U.S. auto sales to 84,521 vehicles in May. The company noticed a pick up in demand in March and April with a "little bit of a rush" from consumers coming in to purchase because they were concerned about potential tariff price increases, Randy Parker, CEO of Hyundai Motor America, said in an interview on Tuesday. But no decisions were made on changing sticker prices for the brand's vehicles as a result of tariffs, Parker added. A price protection program instituted by the automaker in early April ended on June 2 and was not extended. The program guarantees no hikes to sticker prices on new vehicles sold through the period. "This period really marks our regular annual pricing review," Parker said. "We take a look at market dynamics, consumer demand, independent of tariffs."
CNA
03-06-2025
- Automotive
- CNA
Ford, Hyundai post higher US sales in May on strong SUV, truck demand
U.S. auto sales for Ford Motor and South Korea's Hyundai Motor rose in May, the companies reported on Tuesday, as concerns over potential tariff-related price hikes prompted buyers to act fast on their purchases of cars and SUVs. U.S. President Donald Trump's tariff policies have fueled uncertainty across the auto industry, driving up supply costs, pressuring margins and pushing some automakers to pass the expenses on to consumers. The sales also got a boost from offers and trade-in deals for affordable pickups and crossovers. Ford's overall sales rose to 220,959 units in May from 190,014 units a year ago. The Detroit automaker's F-Series truck sales climbed 15 per cent to 79,817 vehicles during the month. Ford in April extended discounted rates to its customers that are generally reserved for its workers to keep sales moving, although the automaker also hiked prices on three of its Mexico-made products in May. Hyundai also reported an 8 per cent year-on-year rise in U.S. auto sales to 84,521 vehicles in May. The company noticed a pick up in demand in March and April with a "little bit of a rush" from consumers coming in to purchase because they were concerned about potential tariff price increases, Randy Parker, CEO of Hyundai Motor America, said in an interview on Tuesday. But no decisions were made on changing sticker prices for the brand's vehicles as a result of tariffs, Parker added. A price protection program instituted by the automaker in early April ended on June 2 and was not extended. The program guarantees no hikes to sticker prices on new vehicles sold through the period. "This period really marks our regular annual pricing review," Parker said. "We take a look at market dynamics, consumer demand, independent of tariffs."
