The auto industry flocked to dealers last month to lock deals before Trump’s car fares increased by thousands of dollars, witnessing a different kind of March madness, several automakers said.
“This past weekend was the best weekend I’ve seen in a very long time,” Randy Parker, CEO of Hyundai Motor North America, told reporters Tuesday. The company reported a 13% increase in sales in March on Monday compared to the previous year.
Ford Motor said on Monday that sales at dealers rose 19% in March. However, the company said Ford’s sales throughout the quarter reduced 1% to around 500,000 vehicles as sales to fleet customers fell.
General Motors did not provide another figure in March, but reported first quarter sales rose 17% from the previous year to 693,000 vehicles.
Last week, Trump said Thursday he would impose a 25% tariff on imported vehicles. Customs duties will be extended to imported auto parts on May 3rd. Many cars made in US factories contain parts made overseas, frequently exceeding 50% of the vehicle’s value. Analysts estimate that automakers will have to raise prices on some models by more than $10,000 to compensate for new taxes.
GM, Ford and Hyundai reported increased sales of electric vehicles and hybrids. GM said that the electric version of the Equinox Sport Utility Vehicle has become widely available, almost doubled for vehicles with only batteries to 32,000 units. The starting price is around $35,000, and the Equinox is one of the most affordable electric vehicles available in the US.
Ford said sales of hybrid vehicles increased by 33%, while sales of electric vehicles like the Mustang Mach-E rose by 12%. Sales of cars with internal combustion engines fell 5% during the quarter.
Hyundai said sales of the hybrid skyrocketed 68%, while sales of pure electric vehicles rose 3%.
Parker of Hyundai said he could not estimate the impact it would have on its involvement in the company’s price. Hyundai and its sister company Kia have factories in Georgia and Alabama, but import a considerable number of vehicles from South Korea.
“We haven’t made a solid decision yet,” Parker said. But he added, “Don’t wait for tomorrow to buy what you can buy today.”
Source: www.nytimes.com
