Hyundai and Kia are the first to report their quarterly sales in the United States, and — shocker — people suddenly got very interested in buying cars in the last few weeks of the quarter. A kind of clever thing to do if you were the President would be to get everyone worked up about tariffs, get a strong quarter of sales, and then say “never mind.” That’s probably not going to happen.
Today we celebrate three years of making this website, and I know that many of you come to The Autopian specifically to get away from the concerning news of the world. Trying not to write about the tariffs or their impacts is mostly impossible, so for today’s Morning Dump I’m going to focus less on the politics of it and more on the practical considerations of it all.
For automakers, in the very short-term, it’s probably going to mean more sales. After that, it’s anyone’s guess, but automakers are worried about it enough that they’re engaging in all sorts of interesting behavior. There’s the bargaining phase, which is where most automakers are. And there’s acceptance, which means trying to import all the cars you can while you can.
Finally, for all the talk about Tesla’s share price, one of its newest competitors in China is seeing a huge dip over safety concerns.
Hyundai And Kia Cash In This March As People May Be Trying To ‘Lock In The Price’
Last night the mighty Longhorns vanquished TCU to enter the college basketball Final Four as March Madness spills over into April. The same madness seems to be infecting car buyers, at least at Hyundai and Kia dealerships. Hyundai had its best-ever quarter, with 203,554 sales, up 10% year-over-year.
More impressive for Hyundai, the company’s March sales hit 87,019, up 13% year-over-year. That March number is the second-best month in the company’s history. Hybrid sales led the charge, up 68% year-over-year, with only one EV (the Ioniq 5) in the black this year, though up strongly at 26%. The biggest drops were for the Kona, which has an EV version, and the Santa Cruz, which is great but expensive.
Kia’s total sales were not far off at 198,850 units, a 10.7% quarter-over-quarter increase. The company’s March was also the biggest March on record, likely led by hybrids, and positive momentum for the Telluride and Carnival. The EV6 and EV9 were both down year-over-year.
What does this mean? Hyundai and Kia both build a bunch of extremely competitive products. The company has gotten a bunch of good press for expanding in the United States, even if most of those plans existed before the tariffs were announced.
Some of this, though, is probably a tariff effect, as Automotive News reports:
“The final week of March was the strongest retail sales week we’ve seen of the year,” said Eric Watson, vice president of sales operations at Kia America. “Part of it may have been driven by customers trying to lock in the price of a vehicle they want to purchase.”
Watson said showroom activity was also strong across the industry in the closing days of March.
Definitely lock in the price while you can. I don’t know what is going to happen, but I know that prices now are probably decent. I will continue to tap the “buy your next car before the trade war starts” sign until my finger falls off. Because I bought a car last year (from Galpin Honda, which is owned and operated by Autopian co-founder Beau Boeckmann), I got this email that was sent out to all customers that I thought was interesting:
With the recent announcement of the upcoming 25% tariffs for vehicles and parts built outside of the United States, one thing is certain, our current inventory of nearly 3000 new vehicles is unaffected and tariff-free! The silver lining is that your trade-in is potentially worth significantly more today. Rest assured, Galpin is here offering you the great Galpin deals as we have for over 75 years.
If you have been thinking about a new vehicle, now or in the future, now may be the time. Even if you haven’t been thinking about one, it might make sense for you to act sooner than later. It’s possible that if the tariffs go into effect April 3rd, prices could very well go up from the manufacturers, and in some cases, significantly.
It is also important to point out that since the 25% tariffs applies to parts and components, every vehicle will be affected, even those built in America, as every vehicle has parts and components that are imported.
It’ll be interesting to see how much of a car-rush, if any, we see in the coming weeks at dealerships around the country.
Automakers Are Asking For A Break, Telling Employees It’ll Be Fine
I have not talked to a single person who thinks that tariffs aren’t going to cause car prices to go up. Maybe you think prices should go up. Maybe you think cars are too cheap, and that the cost of those cheap cars is a loss of American manufacturing. I am open to the argument, which is similar to what the UAW is currently saying.
The auto industry, reportedly, isn’t entirely on board. There’s some reporting out there today that the industry is fervently lobbying to make this not happen this week. Let’s start with Bloomberg, which is out this morning with “US Automakers Make Mad Dash to Push Trump to Temper Tariffs” and these details:
Detroit’s automakers have conceded that they’re willing to pay tariffs on completed cars and large components like engines and transmissions, the people familiar with the matter said. But representatives for the companies have told the administration that levies on parts would drive up costs by billions of dollars, leading to layoffs and profit warnings that would run counter to Trump’s goal of building up the industry, one of the people said.
Representatives for the companies declined to comment. Trump on Monday declined to say whether the administration is considering exempting some car parts from the tariffs. He said he had already given automakers “a break” by pushing off tariffs for a month.
The US companies are seeking exemptions on low-value parts like sheaths of electrical wiring that course through modern cars, which are labor intensive to produce and tend to be made in Mexico and other low-wage countries. They argue that the combined levies would send car prices soaring and depress demand from American consumers, who are already confronting average prices approaching $50,000.
Over at the Detroit Free Press, we have the message that automakers are sending to employees:
Leadership at General Motors and Ford Motor Co. are reassuring employees and investors that the companies are working on how to best navigate the turbulence they foresee coming out of the 25% tariffs President Donald Trump imposed on all imported autos and most auto parts.
The messages to the workforces at both automakers, obtained by the Detroit Free Press, said companies are well-positioned to address the uncertainty around the tariffs, which take effect Thursday. Despite being healthy companies, both automakers will feel impact, the statements said.
For that reason, company leaders are wasting no time in studying the new executive order and advising employees to stay focused on their jobs and be mindful of corporate spending.
The annual holiday parties might be a little more muted this year if this holds.
Mercedes Is Reportedly Stockpiling While They Can
Both Mercedes and BMW keep stockpiles of imported cars in New Jersey, and it seems like those lots are a little fuller than usual. Every time I drive by, there seem to be more new vehicles. This apparently isn’t just my imagination, as Reuters is reporting that Mercedes is stockpiling in advance of tariffs.
Mercedes-Benz is building up inventory levels in the U.S. at the wholesale level and at dealer lots to get ahead of tariffs due to be collected from April 3, executives told analysts on a call, according to notes by analysts.
Asked about pricing, executives said no automaker was operating in a silo, implying it would observe how its competitors responded once tariffs were in place, the note by Bernstein Research said.
Mercedes did not immediately respond to a request for comment. The investor call was held before a closed period on company information before annual results scheduled for April 30.
Hear me out, Mercedes. Let’s make a movie where you give me an Actros hauler full of AMGs and a Project.ONE and I’ve gotta Smokey and the Bandit it across the border by April 3rd.
Xiaomi Faces Its First Crisis
The most interesting automaker in the world right now, besides Škoda, is clearly China’s Xiaomi. The smartphone company managed to skip a bunch of steps to become the most talked-about EV automaker in China, even if it’s not even close to the biggest.
A fatal crash that may have involved people trapped in a car has hit the company’s share price, according to local media. Here’s the take from the South China Morning Post, which notes that the company’s assisted driving system was being used:
Xiaomi said the car was travelling at 116kph on a highway with the driver assistance system in operating mode, adding that the system alerted the driver to take over the vehicle two seconds before it hit a concrete barrier.
While Xiaomi did not mention the number of fatalities involved, the mother of the driver said in a social media post that three people – the driver and two passengers – died in the crash.
Xiaomi, which found success with the SU7, did not say if it would recall the cars or update the self-driving software.
Other reports iindicate the three passengers may have been trapped in the car after the crash, although a lot isn’t known at this point. While there have been other incidents with the SU7, this is the first time I can think of that Xiaomi has faced this kind of serious scrutiny.
What I’m Listening To While Writing TMD
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The Big Question
Are you more or less encouraged to buy a new car right now?
Top photo: Depositphotos.com
I don’t need a second car but I would like one. The past few days pushed me to the “buy” position. However, I’m buying used. All car prices will go up, I’m afraid. An orange tide sinks all ships.
Since the average price of a new vehicle is essentially the same as our annual household income, I could care less about ANY new car. I’m here for the quirky cars, the illuminating taillight articles and any writing from the great journalists. I’ll continue to buy used, older cars and fix them myself as needed.
I’m right there with you and agree with all the things you’ve said.
Just one little pet-peeve addendum. You couldn’t care less. If you could care less, you care an amount. If you couldn’t, you don’t care at all.
Shoot, thank you! Either my fat fingers were typing quickly or I had a brain fart. My english degree spouse would be so disappointed with me. Good catch. I should be added to that Ford Executive’s list of verbal blunders now.
Autocorrect gets me half the time (at least). I have to pet-peeve-correct myself way too darn often.
That’s funny about the English degree in the family though!
There is no Elon talk here today and I’m feeling some ways. For example how he nearly burst into tears on TV complaining about Tim Waltz making fun of his drooping socks. Sorry, stock.
it’s really bad, I mean he will soon run out of money to bribe voters and influence elections.
Happy Birthday you filthy babies. I hope you’re eating solids now. Where would we be if it weren’t for thee? Reading dry stats on Edmunds that’s where.
Less encouraged to buy any car, just as I began investigating a second car/toy. I pray regularly my current car lasts until this foolishness passes.
Very much less encouraged to buy a new car right now.
My “consumer sentiment” is extremely low.
Hoping I’m proven wrong, but I have zero desire to take on debt or get rid of any assets/cash right now.
I think economy-wise things have a long way to fall…
I’m with you on consumer sentiment, but I moved some of my investments and cash into foreign investments and foreign currency. I’m the least confident that I’ve ever been in the value of the US dollar.
A part of me thinks that now is the time to buy anything I’ve been thinking I would like or do stuff I’ve been putting off, because I may not be able to afford those things/experiences in the near future and I’m not so sure saved money is going to hold value, even if it’s earning interest. Future me is screwed, though.
I was very much encouraged to buy because of the current deep-dicking of the system, but it was a sort of an indirect purchase (and it was “new” to me). I was on the radar of a friend of mine whom had been thinking of trading his wife’s ’07 Acura RDX on a new car. They abruptly decided to do that this last Saturday and I got a text from him letting me know. With no time to think it over I said “Yes, please”, and promptly brought him a check for $2,000 as the dealer only offered him $1800 for the trade.
Purchased site-unseen, the 18-year old Acura does need struts all around, an electrical-gremlin that runs down the battery in a day looked at, a slow-leaking tire, and a few other things addressed. However it’s a one-owner (now two), garaged, ding-and-rust-free Acura RDX with 157,000 miles with a nice leather interior. It might end up as a car for some friends of mine currently looking, or it might replace my wife’s ’95 Escort. At any rate, it’s now part of my fleet out in the driveway and I’m pretty happy about it so far.
As to my friends who bought the new Honda. They said there were 14 people in front of them all also purchasing new Hondas. Took them almost five hours to get out of the dealership.
Less but not because of the tariffs. It’s mostly because very few new cars are appealing. They have too much needless tech and are too expensive for the value they provide (or that I will get from them). I’ve had my DD for about 10 years now and while it has quite a bit of life left in it I do have an itch to get something newer but there is next to nothing I’d actually want to buy.
I’m not hopeful it will happen but I’d love to see this turmoil usher in a new way for people to look at buying new cars. They are personal finance and environmental disasters in most cases that have been encouraged with easy financing and subsidies. Maybe all this will be a wakeup call.
there was an analogy – I think from Top Gear – that talked about the GFC hitting being when “the music stopped”, and then you were just stuck with whatever you had at the time. Well, it looks like the needle gets pulled overnight, I’ve got my terrible decisions in play, how bout y’all?
I agree with that being the point where things really started to turn to shit, it was just that the effect was delayed. Just about everything everyone is making from the early 2010s on has not been something I would buy or recommend to friends and family to buy. The industry is due for a reckoning, especially after the covid era feeding frenzy, but I expect doubling and tripling down and at least a few major automakers folding.
I’m currently pulling out all the stops to figure out how I can work even more to earn more. And I’m cutting costs like a private equity firm that just bought a respected brand. It’s all hands on deck mode in my household.
Typically I have a never-ending desire to car shop and consider new vehicles (even though I rarely pull the trigger). I can’t recall the last time I’ve been more discouraged from scratching that itch.
I am very thankful that I am not in the market to purchase a car right now and barring misfortune, will not be for a number of years. It’s ugly right now and I’m just hunkering down to hopefully keep my job and ride this whole thing out.
Matt, I would like to thank you and the rest of the Autopian staff for all your effort to minimize politics. Today’s politics and the constant bickering drive my anxiety through the roof. It is nice to be able to escape that and just read about cars again.
Unlike that other site which is now just an echo chamber with little quality content.
Keep up the good work!!!
This feels like an un asked for Alien anal probe…except all the Aliens have wisely left already on their space ships, or been kindly deported to better places. Right?
So apparently the GOP has decided to take up the slack re: unrequested anal probes.
No, I don’t have anything of value stashed there, BTW.
We are so screwed. Once again.
Good luck everyone.
I don’t know about you, but it’s where most of us keep our shit. I think they may be on to something with the probes.
The desperation to establish some type of mythical legacy is beyond reckless. Nothing else is driving these decisions. A certain person wants Dear Leader status more than anything else. To have everyone be in awe of their singular superiority. Anything at all that might achieve this will be tried. The ends are not greatness for our country, but for that single individual. Literally nothing else matters. There is no other goal. He wants to see pictures of himself in every home and on every billboard. The Mount Rushmore thing is no joke. That’s what is going on here. Nothing more, nothing less.
As such, whatever might further that end will tried. There will be no consistency in anything but the furtherance of that objective and whatever might appear to do so in that moment will be done. It’s the Fame Game, plain and simple. My point here is that if you look for any sanity in any of these moves, you will fail to find any unless you process it from that insanely selfish perspective.
And about this assertion I am 100% positive: If the Democratic Party had offered greater fame potential, he would be the most liberal, woke warrior since Jesus walked the Earth, eating granola, and driving a pedal car. There are absolutely no morals, ethics, or scruples behind any decision. It’s all, always about him and his fame. Once you get that, everything makes a sort of sick sense.
Can anything be done? Perhaps not, but at least these things usually don’t work out too well over time, so there may be some solace in that.
If only I could give you more likes.
Appreciated!
That’s two!
Mount Rushmore would be…strangely appropriate. Given that its familiar form isn’t its intended finished state but the point where they had to stop carving or risk losing it all to a rock slide, I can’t think of a better capstone to the Trump era than for the attempt to cause a collapse into rubble.
Oh man, that would be one for the ages.
The sad part is, if the NFL had let him purchase a team back in the day, this would arguably have never even happened.
But the NFL owners wanted no part of him at the time. Hard to imagine why.
I bought ahead of the election, figuring something stupid would happen. Could have put big money down and had low payments but instead chose to buy older/used outright. Glad I did.
I am selling a car that needs a bit of work (Hey DT, want an orange, soft top, manual, 2dr 2012 Wrangler?) so I’m wondering if I hold off I can get more out of it. Who knows.
Regardless I’m SO glad I don’t have to buy a car the next four years. Please, any higher power that will listen, don’t make me have to buy a car anytime soon.
Whenever a dealership is giving me advice on buying a car, I will generally try to avoid buying a car.
I like that they said my trade-in is “potentially” worth more today. Likely it will be worth more later, lest they want it badly today. Even if it ain’t they sold a new car today.
Right now? No. It’s just not good timing for me now. I have perfectly good, running, vehicles currently.
We are going to buy within a year, buuuuut….I don’t want to pull money out of investments that are down, to pay for something that just went up in price and may drop in price (a little , hopefully) when the tariffs are sorted out.
Anyone else more interested in what Car World in the lede pic has than anything on the market in the real world? They’re clearly hatchbacks/wagons, too low to be crossovers, and in real colors other than a couple of white ones. And I think if the assignment had included interiors Jason would have given a good selection of them an 8 but clutch pedal.
But seriously I just paid off the car I bought just before COVID and need to look into some proactive maintenance before parts prices rise since the plan had been to keep it 10 years and it may turn into 10 years from now.
I purchased in advance of the election, partially motivated by a fear of something like this, partially motivated by little things going wrong on my car and struggles with the local Kia dealership when fixing them. If I hadn’t, I would have purchased as soon as the tariff talk started.
Hoping not to have anything happen to this car for some time.
“Hear me out, Mercedes. Let’s make a movie where you give me an Actros hauler full of AMGs and a Project.ONE and I’ve gotta Smokey and the Bandit it across the border by April 3rd.”
Better movie: Matt Hardigree and Sandra Bullock are stuck onboard an out of control Roll On/Roll Off car transporter and they’re going to hit the Port of Savannah harder than William Tecumseh Sherman.
Speed is a bit different when you cant go more than 25 MPH, and have 10 minutes between making a decision and seeing if you hit something.
I’d still watch though.
We have two Outlanders and a Mirage all under 30k miles and all bought last year. We good for awhile.
Want electric, own awd 20 mpg suv, works well, 64K miles, 7 K miles/yr. Staying put as long as I can. No car changes for me.
“Both Mercedes and BMW keep stockpiles of imported cars in New Jersey”
As well as Port Hueneme (near Ventura, CA), Sparrow’s Point (Baltimore), Brunswick (Georgia) and Galveston, TX – for BMW
However I don’t believe Mercedes-Benz has imported via New Jersey in quite some time – so there are no stockpiles there – and MBUSA’s corporate offices were moved from NJ to Georgia in 2015. MBUSA’s three VPC locations are in Sparrow’s Point, Brunswick, GA and Long Beach, CA.
Ughhh, not in the place to buy for the next 3 years, but my girlfriend will need a new car sooner than that. Getting cramped as her 2 little ones grow up and get into sports. Just had to replace the wiper motor last weekend, which is very much a necessity in the PNW.
Cant wait for tariffs to trickle down their price increase onto used stuff too.
My oldest car turns 6 this month and it has less than 40K miles on it. It would be foolish for me to go buy something new right now. I’m sure tariffs will cause prices to increase, probably substantially, so if I were in the market, I would probably rush to get my purchase done before they kick in. A friend of mine bought a new car last week because his beater had 250K miles and was starting to have transmission and other issues. While he was inclined to wait, he decided to buy now because of the potential tariffs.