Auto sales continue to top sales in the same month but a year prior. Januarys though are difficult as weather plays an unpredictable part. From Jan. 2024 to Jan. 2025 auto sales are down for two main leaders; Toyota and Ford with Toyota having a 2% decrease and Ford with a 6% decrease in sales. But most other main automakers have seen an increase. January is seen as a slow month for car sales due to the post holiday break and weather impacting consumer behavior. Demand is low as severe weather like snowstorms turn people away from visiting dealerships to buy cars. There was a sigh of relief in the auto industry in late January when the day before tariffs were to take place Trump made temporary deals with Canada and Mexico to delay the 25% tariffs for 30 days. This would have affected top selling automakers. Automakers get more than a third of their U.S. inventory from the Mexican and Canadian factories. Analysts concluded that the 25% tariff would raise the price of the average car by $3,000 and some rise by as much as $10,000. After the 30 days prices could rise quickly in March if the tariff threat re emerges.
Wow I didn’t know that automakers get more than a third of their U.S. inventory from the Mexican and Canadian factories. Seems like a major issue when tariffs get involved.
ReplyDeleteA big issue with the tariffs for the auto industry would be with cars like Chevy Silverado or Dodge challenger for example. These cars are manufactured using components that cross multiple borders before final production, which causes those tariffs to add up quickly.
ReplyDeleteIf the tariffs are implemented, I think it will be interesting to see if they will shift more of their inventory to the US, or the more likely scenario that prices will just rise and the company will pass that tariff cost onto consumers.
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