New car prices were already 25% more expensive than before the pandemic. Now what?
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How automakers like Ford, VW, Stellantis are reacting to Trump’s 25% tariff
- Thread starter JournalBot
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And this is different for just about any other car brand how? Granted, Ford may not be the most reliable brand out there (though there are worse), but every car at some point will need maintenance and repairs.
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"vote and hope the guy don't do what he promised" sure is an interesting approach to politics. Especially when he already did so last time
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I wish that all manufacturers and retailers would separate out the tariffs and label them as "Trump Tax." Maybe some people would be clued into how they're actually affecting them at that point.
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Not to mention that warranty repairs cost the dealer and manufacturer money not mint them money
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At least the penguin is wearing a suit.There is a glimmer of good news.
Those freeloading residents of Heard and McDonald Islands won't be able to mooch off the US economy anymore.
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There's one problem I have with this assertion: The ultra-wealthy will still be losing capabilities overall as the economy tanks. They were never going to be doing good things for the economy, but their style is a targeted erosion of our regulatory institutions and bargaining power; whereas what's happening is a precursor to societal collapse.
The power of their money is backed by the capabilities and infrastructure of the US government. Sure Ford gets slightly more control over the U.S. auto industry, but what's the point if it comes at this level of damage to the U.S. economy? The recession that this is going to bring is going to be one of those deals where those who come out on top are still losers.
This is pure incompetence from this country's dumbest idiot through and through, Ford doesn't want this, banks and stockholders don't want this, Elon probably wants this because he's just as stupid as Trump, most of the republicans don't want this but lack the spines to say "this is a stupid idea." The SCOTUS ghouls are probably cool with it because they're also stupid enough to think that the bribes they receive in their final years will be enough for their families end up okay.
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Ford has realized that the vehicle is no longer where they make their money... now they make their money on the add-on features and the telemetry they can sell.
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And so has every other manufacturer so again that doesn't set Ford apart in any meaningful way beyond the general goal of a car company to sell more cars
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That was happening BEFORE the tariff's.
Remember, this affordability issue basically only hits a fairly low percentage of Americans who were on the lower end of the "I can afford a new car" scale. Before the tariffs, 70% of Americans already couldn't afford a new car. So now that percentage will rise. By how much those percentages rise is arguable, but I'd expect it to be single to low double digits overall.
The PERCEPTION is going to be worse than the actual economic impact for NEW car buyers.
USED car buyers are going to see prices jump far more, knocking out even more than the 50% of Americans who already can't afford a decent used car. I expect to see that percentage rise by a more significant number, because people on the lower end of the affordability for a new car scale will be laying down more money for decent used cars, leaving little more than rolling wrecks for the rest of us.
If you think about it, it's mostly bad for the auto workers and hugely undermines the new car sales industry because new car sales are going to be hit bad due to a comparatively significant percentage of the already narrow number of those who used to be able to afford them not being able to afford them now.
So, the markets WILL see huge disruption, but I don't think it's moving affordability needles that far for the vast majority of Americans. Those who couldn't afford either new or used (50% of us) still can't afford either option. And there's only a small percentage of Americans (by comparison) who will be forced to buy used due to new car costs being too high now for their budgets.
The losers are the new car industry. This is how the Trump administration describes "winning".
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The difference here is that "at-cost" is a lot cheaper for Ford than for a lot of their competitors in the US. So if they're all making the same money off features and telemetry, the trick is to figure out how to incentivize the dealerships to move product WHILE incentivizing customers to buy. So the dealerships sell loans and insurance, the manufacturers sell features and data (and parts, which will now be marked up), and the customers get a better sticker price, which can't be beat by anyone else.
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"I like Trump because he tells it like it is"
He just said he was going to tariff everything and destroy the economy.
"Oh no, that's just politician talk, he don't mean it"
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I suspect that the point is the corruption. As with the law firm executive orders, Trump is basically saying that he holds the economies of nations in his hands and the way to gain advantage is to turn up to the White House and bend the knee. Foreign governments might protest but a certain percentage of business leaders are going to turn up and negotiate. Trump and co don't care that they're going to produce a tariff code more complex than the tax code all for some headlines where Big Business A promises X jobs and $$Y in US investment which will evaporate once they've got their concession and Trump supporters are done wanking to the headlines. Don't forget that they'll all stay at Trump properties and lube up the bureaucratic skids any time a Trump golf course or anything the rest of the billionaires in the administration need. Trump can simply hold the global economy hostage to sate his ego and feed his base, the only consequences being the US economy. When his supporters lose their jobs Trump will point to evil foreigners that didn't want to "pay their fair share", and given his track record likely suggest that the US invade.
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Canadian here.
Only America wants to take over my country and rape my land of its resources and destroy us as a people.
China is not making those kinds of threats. They make much more reliable cars than Tesla, they also didn't fraudulently claim EV tax credits like Tesla did.
Why should I support US made fascist cars that will cost an obscene amount thanks to Donalds Tariffs?
I would sooner buy BYD even if it was $40K and Tesla was $20K.
I would sooner pay $40K to walk than use a Tesla.
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Apple lost 10 pts today
Every UAW worker who voted for trump deserves to eat cold shit from a garbage can
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The messaging is insidious because it's all "those foreign people are ripping us off!"
The tariffs deployed as they are are simply a flat tax which massively affects the lower-middle class. It's a sneaky way off raising taxes in a way that benefits the rich. The Trump tax cuts are about to be renewed very soon. How will they be paid for? Those poor people. They've got tons of money, right?
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I don't think this is an either/or thing. I think both could be true. Every step that Trump has taken in his first term and so far in the second has been designed to hit middle class the hardest. I don't think that's an accident. I do think they want a ruling class, and a slave class. But that said, I think they revel in chaos as well and really like seeing everyone react to their bullshit. Their egos feed off it. Chaos makes them the center of attention, it makes them all that other people are talking about. They need that constant feedback.
Seeing as how both motivations work to the same end, I fail to see why both can't be true.
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I'd normally post my usual "get out of the US, Australia would welcome you" - but these fucking morons are taking the world down with them.
Tariffs - the neutron bomb of economics. Leaves billionaires standing while wiping out the rest of humanity.
Tariffs - the neutron bomb of economics. Leaves billionaires standing while wiping out the rest of humanity.
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Agreed. These tools are really adding anxiety to the entire world. It's f'ked up
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So I imagine someone has already pointed this out but the US is about a quarter of the worlds GDP. So yes the American economy is a lot compared to the rest of the world. It's over fifty percent larger than the EU. This is bad.
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As a Canadian living in the US, I understand completely. It’s absolutely astonishing what the current administration has accomplished in just a few short months—from closest ally to waging economic war, disrespecting the former prime minister, and threatening annexation.
Nonetheless, I support Carney’s pivot to Europe given our shared interest: NATO, aligned values, labor standards and commitment to human rights, adherence to trade deals, and so on. Pivoting from the US to China is just trading one abuser for another. China engages in IP theft through espionage and forced transfers, dumping, and extensive state subsidies. They don’t even pretend to follow global trade rules… and let’s not even start with their treatment of Uighur Muslims and slave labor.
The EU and UK are Canada’s natural allies…
All this to say, I’d rather buy VW than BYD.
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True and expected. Learning to wrench (its never been easier thanks to the internet) can save buckets of money over time by taking most labor out of the equation. Refuse to be intimidated and worlds open. If you can build a PC with understanding you can choose to learn to work on vehicles. (I'm old, damaged and still enjoy it as there are so many easy ways to handle heavy items.)
There is no overall magic fix but wise, determined individuals can still do well while the world burns. DIY is enormously popular because it saves so much money and the more you do the faster you learn. If the money matters be not afraid to learn.
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We live in such interesting times that when I misread that as Sinn Féin my first thought was, "hey, maybe the IRA can save us!"
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Lol it would have helped if I spelled his name correctly, Shawn Fain
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The Sheep Look Up
Ars Centurion
Here's hoping for more North of Ireland Space Program, less Easter Rising.
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You keep empowering the Devil by calling its name... STOP!!!
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rainynight65
Ars Scholae Palatinae
This happened in Australia during Covid, when new cars took forever to reach the shores. The second hand prices for certain models spiked so high that some people were able to sell their cars with a profit.
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This is the biggest economic own goal by a major power.....ever. The epitome of the know-nothing, anti-intellectual foundation of the MAGA movement. "Oh all this stuff can't be that complicated - anybody can fix it!"
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Could be, but with the way he is handing out tariffs, and the ridiculous way he calculates it? I believe no-one is in control of Trump anymore.
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Just for fun, I looked at Ford's web site for Mach-E pricing. The "Select" (bottom of the range) started at $39,995, but is only available with the small battery. The "Premium" steps up to about $44K stripped. Any color you want other than black and some almost-blue costs extra. Then finishing the "build" takes a few $K off for the "employee discount."
Problem comes if you want to check inventory - iow find a place to buy one. All the dealers within 50 miles of me have them marked up at least $5K from MSRP, and often have nonsensical equipment combinations (like a "Select" - small battery - with AWD and a range reduced to 230 miles). Essentially, none available for <$45K. Which is way too much for my budget.
"Employee Pricing" my foot.
Problem comes if you want to check inventory - iow find a place to buy one. All the dealers within 50 miles of me have them marked up at least $5K from MSRP, and often have nonsensical equipment combinations (like a "Select" - small battery - with AWD and a range reduced to 230 miles). Essentially, none available for <$45K. Which is way too much for my budget.
"Employee Pricing" my foot.
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DaVuVuZeLa
Ars Tribunus Militum
There will be no soup kitchens, because the agencies that support these kinds of programs were eliminated by DOGE.
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Is this the biggest tax increase ever? A 54% tax on everything is pretty huge. Nobody does gigantic tax increases better than Republicans.
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You know the most surprising thing that happened? China, South Korea and Japan decided to bolster trade ties in response to Trump.
Trump did it. He managed to get people to unite - against the US.
The US is going the isolation route. They got adversaries working together against the US. If that's not a miracle, I don't know what is.
https://asianews.network/china-japan-south-korea-to-bolster-trade-ties/
https://www.wsj.com/economy/china-s...riff-response-with-japan-south-korea-c7a19540
US is going to be more and more isolated from international trade. The US is going to have to deal with an economic issue of biblical proportion.
China is going to bloom, get an economy so strong, that is (pardon the unintentional pun) going to trump the US.
The cost of living in the US is going to compound, from tariffs to trust issues. The cost of living in the US is going to skyrocket
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In 2016, I ordered a new car in July and I had to wait for the next model year refresh - until the end of January '17 - as I wanted a combination of options and body color that wasn't available anywhere in the US or CA. The wait alone for the "dream car" was agonizing enough but to be in your shoes? I'd have gone bonkers wondering if I was going to be paying 25% more, especially since the dealership and I had essentially a gentleman's agreement regarding the price before extras (i.e. weathertech floor mats, cargo shelf, etc.). I hope they honor your quoted price, especially if you have anything in writing.
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Looking at it from the bright side for a moment, all these new taxes will drive down consumption, which will be good for the environment. Maybe this is the secret GOP Green New Deal?
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