Latest news with #GeneralMotorsCo.
Los Angeles Times
11 hours ago
- Automotive
- Los Angeles Times
Auto tariffs seen hiking car prices by nearly $2,000 per vehicle
Car buyers will bear the brunt of the $30 billion cost of President Donald Trump's tariffs, driving up already high US auto prices by almost $2,000 per vehicle, according to consultant AlixPartners. The firm expects auto companies to pass along 80% of the cost of Trump's tariffs — which it calculates as $1,760 more per car. AlixPartners, as part of its annual global automotive outlook, also cautioned that the administration's anti-electric vehicle policies risk relegating American automakers to bit players in the global EV market. 'These tariffs bring a big wall of cost,' Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing. We see 'consumers taking the majority of the hit.' General Motors Co. and Ford Motor Co. have already said they expect a $5 billion and $2.5 billion tariff impact this year, respectively, though they say they will find offsets in part through price adjustments. Those higher prices will result in about 1 million fewer vehicles sold in the US over the next three years, Wakefield said. But the consultant expects US auto sales to reach 17 million in 2030, 1 million more than last year, as the impact of tariffs abates. AlixPartners' predicted sales hit is more muted than some other projections because the firm sees tariff rates falling as the US negotiates trade deals with other countries. It forecasts the 25% auto tariff will ultimately fall to 7.5% on assembled autos, 5% on parts and even lower on cars and parts that are compliant with the US-Mexico-Canada trade agreement. 'This tariff wall is not likely to last forever,' Wakefield said. What's likely to have a longer-lasting impact is the Trump administration's move to reduce and eliminate incentives to spur the sale of electric vehicles, such as the $7,500 consumer tax credit for purchasing a battery powered model, he said. That will steer car buyers away from EVs as they 'follow their pocketbook' and buy traditional gasoline-fueled vehicles, Wakefield said. AlixPartners slashed its forecast for EV sales in the US by nearly half. It now sees battery electric vehicles making up just 17% of US auto sales in 2030, down from a previous prediction that EVs would make up 31% of sales by then. Traditional internal combustion engine vehicles will account for half of US sales in 2030, up from AlixPartners' previous prediction that they would only make up about one-third of sales. The consultant sees traditional hybrids accounting for 27% of the US market in 2030, up from its prior forecast of 24%, while plug-in hybrids and extended-range electric vehicles will account for just 6% of US auto sales by then, down from a previous prediction of 10%. That will hurt US automakers' competitiveness and perhaps even leave them dependent on global EV leader China, Wakefield said. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' he said in an interview. The 'aggressive take-down of support' for EVs, will leave American automakers with the dubious distinction of being the world leader in big, gas-guzzling engines, a century-old technology that's in decline, Wakefield said. 'They'll have the world's best V8 engines by 2028,' Wakefield said of American automakers. 'They'll probably also have the world's only V8 engines by 2028.' Naughton writes for Bloomberg.
American Military News
12 hours ago
- Automotive
- American Military News
GM sued over pickups, SUVs recalled for engine issues
General Motors Co. is being sued for fraud after the Detroit automaker recalled nearly 600,000 trucks and SUVs for potential engine failure this year. Lawyers for seven plaintiffs on Tuesday asked the U.S. Eastern District Court of Pennsylvania to grant class-action status to the suit, which seeks financial compensation for consumers who bought the affected vehicles. Recalled vehicles were 2021-2024 model year Chevrolet Silverado 1500s, Tahoes and Suburbans; GMC Sierra 1500s, Yukons and, Yukon XLs, and Cadillac Escalades and Escalade ESVs that are equipped with GM's 6.2-liter V-8 L87 engine. In response to a request from The Detroit News, GM spokesperson Bill Grotz said: 'It's our policy to not comment on pending litigation.' The National Highway Traffic Safety Administration has warned that 'failure or malfunction of the engine results in loss of motive power of the vehicle, which may lead to an increased risk of a crash resulting in injury and/or property damage.' GM recommended that dealers inspect and fix the engines of the affected vehicles, if necessary. For vehicles with engines that passed inspection, drivers were told to use a thicker oil, which the plaintiffs allege makes the SUVs and pickups less fuel-efficient and therefore more expensive to own. 'Thus, as the result of the underlying defect and GM's recall remedy, owners are presented with two bad options: do nothing and risk catastrophic engine failure or get the recall and pay hundreds of dollars more for gasoline,' lawyers for the plaintiffs wrote in the filing. The defect and decreased fuel efficiency 'has and will continue to depreciate the resale value' of the vehicles, lawyers wrote. NHTSA launched an investigation into the GM vehicles in January after receiving complaints of an engine rod bearing failure leading to engine seizure or breach of the engine block by the rod. A report has not yet been released. An internal GM investigation found more than 28,000 complaints or incidents possibly related to the L87 engine failure between April 2021 and February 2025, according to a separate recall report by NHTSA. GM identified 12 crashes potentially related to the engine issue, none of which were serious. The plaintiffs claim GM kept information about the defect from buyers and unjustly profited from concealing the issue. They're suing under both federal and several state consumer protection laws. 'These class vehicles, when sold or leased and at all times thereafter, contained a serious engine defect that can lead to catastrophic engine failure and attendant safety risks,' according to the lawsuit. 'The class vehicles were therefore not merchantable, not fit for the ordinary purpose for which vehicles are used, and did not conform to the promises or affirmations of fact made on their labels.' ___ © 2025 Distributed by Tribune Content Agency, LLC.
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Business Standard
19 hours ago
- Automotive
- Business Standard
Trump's tariffs seen raising US car prices by nearly $2,000 per vehicle
Car buyers will bear the brunt of the $30 billion cost of President Donald Trump's tariffs, driving up already high US auto prices by almost $2,000 per vehicle, according to consultant AlixPartners. The firm expects auto companies to pass along 80 per cent of the cost of Trump's tariffs — which it calculates as $1,760 more per car. AlixPartners, as part of its annual global automotive outlook, also cautioned that the administration's anti-electric vehicle policies risk relegating American automakers to bit players in the global EV market. 'These tariffs bring a big wall of cost,' Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing. We see 'consumers taking the majority of the hit.' General Motors Co. and Ford Motor Co. have already said they expect a $5 billion and $2.5 billion tariff impact this year, respectively, though they say they will find offsets in part through price adjustments. Those higher prices will result in about 1 million fewer vehicles sold in the US over the next three years, Wakefield said. But the consultant expects US auto sales to reach 17 million in 2030, 1 million more than last year, as the impact of tariffs abates. AlixPartners' predicted sales hit is more muted than some other projections because the firm sees tariff rates falling as the US negotiates trade deals with other countries. It forecasts the 25 per cent auto tariff will ultimately fall to 7.5 per cent on assembled autos, 5 per cent on parts and even lower on cars and parts that are compliant with the US-Mexico-Canada trade agreement. 'This tariff wall is not likely to last forever,' Wakefield said. What's likely to have a longer-lasting impact is the Trump administration's move to reduce and eliminate incentives to spur the sale of electric vehicles, such as the $7,500 consumer tax credit for purchasing a battery powered model, he said. That will steer car buyers away from EVs as they 'follow their pocketbook' and buy traditional gasoline-fueled vehicles, Wakefield said. AlixPartners slashed its forecast for EV sales in the US by nearly half. It now sees battery electric vehicles making up just 17 per cent of US auto sales in 2030, down from a previous prediction that EVs would make up 31 per cent of sales by then. Traditional internal combustion engine vehicles will account for half of US sales in 2030, up from AlixPartners' previous prediction that they would only make up about one-third of sales. The consultant sees traditional hybrids accounting for 27 per cent of the US market in 2030, up from its prior forecast of 24 per cent, while plug-in hybrids and extended-range electric vehicles will account for just 6 per cent of US auto sales by then, down from a previous prediction of 10 per cent. That will hurt US automakers' competitiveness and perhaps even leave them dependent on global EV leader China, Wakefield said. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' he said in an interview. The 'aggressive take-down of support' for EVs, will leave American automakers with the dubious distinction of being the world leader in big, gas-guzzling engines, a century-old technology that's in decline, Wakefield said. 'They'll have the world's best V8 engines by 2028,' Wakefield said of American automakers. 'They'll probably also have the world's only V8 engines by 2028.'
Miami Herald
2 days ago
- Automotive
- Miami Herald
GM sued over pickups, SUVs recalled for engine issues
General Motors Co. is being sued for fraud after the Detroit automaker recalled nearly 600,000 trucks and SUVs for potential engine failure this year. Lawyers for seven plaintiffs on Tuesday asked the U.S. Eastern District Court of Pennsylvania to grant class-action status to the suit, which seeks financial compensation for consumers who bought the affected vehicles. Recalled vehicles were 2021-2024 model year Chevrolet Silverado 1500s, Tahoes and Suburbans; GMC Sierra 1500s, Yukons and, Yukon XLs, and Cadillac Escalades and Escalade ESVs that are equipped with GM's 6.2-liter V-8 L87 engine. In response to a request from The Detroit News, GM spokesperson Bill Grotz said: "It's our policy to not comment on pending litigation." The National Highway Traffic Safety Administration has warned that "failure or malfunction of the engine results in loss of motive power of the vehicle, which may lead to an increased risk of a crash resulting in injury and/or property damage." GM recommended that dealers inspect and fix the engines of the affected vehicles, if necessary. For vehicles with engines that passed inspection, drivers were told to use a thicker oil, which the plaintiffs allege makes the SUVs and pickups less fuel-efficient and therefore more expensive to own. "Thus, as the result of the underlying defect and GM's recall remedy, owners are presented with two bad options: do nothing and risk catastrophic engine failure or get the recall and pay hundreds of dollars more for gasoline," lawyers for the plaintiffs wrote in the filing. The defect and decreased fuel efficiency "has and will continue to depreciate the resale value" of the vehicles, lawyers wrote. NHTSA launched an investigation into the GM vehicles in January after receiving complaints of an engine rod bearing failure leading to engine seizure or breach of the engine block by the rod. A report has not yet been released. An internal GM investigation found more than 28,000 complaints or incidents possibly related to the L87 engine failure between April 2021 and February 2025, according to a separate recall report by NHTSA. GM identified 12 crashes potentially related to the engine issue, none of which were serious. The plaintiffs claim GM kept information about the defect from buyers and unjustly profited from concealing the issue. They're suing under both federal and several state consumer protection laws. "These class vehicles, when sold or leased and at all times thereafter, contained a serious engine defect that can lead to catastrophic engine failure and attendant safety risks," according to the lawsuit. "The class vehicles were therefore not merchantable, not fit for the ordinary purpose for which vehicles are used, and did not conform to the promises or affirmations of fact made on their labels." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
11-06-2025
- Automotive
GM to invest $4 billion to ramp up US production
Shares of General Motors rose before the opening bell after announcing plans to invest $4 billion to shift some production from Mexico to U.S. manufacturing plants as the automaker navigates tariffs that could drive prices higher. President Trump signed executive orders in April, relaxing some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers. Automakers and independent analyses say the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States. GM said late Tuesday that the investment will be made over the next two years and is for its gas and electric vehicles. The company will add production of the gas-powered Chevrolet Blazer and Chevrolet Equinox, which are made in Mexico, to two American plants starting in 2027. The Blazer will be produced at GM's Spring Hill, Tennessee plant, while the Equinox will be made at its Kansas City, Kansas facility. GM will also begin making gas-powered full-size SUVs and light duty pickup trucks at its Orion Township, Michigan plant, which was previously being reconfigured to make electric vehicles until demand for such cars weakened. The new investment will give GM the ability to assemble more than 2 million vehicles per year in the U.S. CEO Mary Barra said in a statement on Tuesday that GM is committed to building vehicles in the U.S. and supporting American jobs. GM has 50 U.S. manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants. The company says that almost 1 million people in the U.S. depend on it for their livelihood, including employees, suppliers, and dealers. Last month GM lowered its profit expectations for the year as it braces for a potential impact from auto tariffs as high as $5 billion in 2025. The automaker now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion. Shares of General Motors Co. rose almost 1% before the opening bell Wednesday.
