Latest news with #Wakefield
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.
BBC News
11 hours ago
- BBC News
Pontefract car meet driver caught speeding at 135mph on M62 motorway
A driver has been caught speeding at 135mph (217km/h) on the M62 motorway in West vehicle had earlier attended an "illegal car meet" at the Park Road Retail Park in Pontefract on Sunday evening, West Yorkshire Police said. The driver left the car meet and joined the M62, where they were seen speeding between Pontefract and Wakefield. They are now due to appear in court in connection with the offence. Police also seized two cars and recorded several other driving offences related to those attending the car meet. Police said they had become aware of a scheduled car meet at the retail park after a similar one was held at the same location the previous weekend. One car was seized due to the driver being disqualified from driving, with the other taken due to the manner of Andy Dickinson, from the force, said: "We take a zero tolerance approach to the anti-social use of vehicles in the district."We know that concerns still remain though about future events, and I would like to reassure people that we will continue this work to deter and prosecute the organisers and motorists involved in these car meets." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
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Business Standard
18 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.'
Time of India
19 hours ago
- Automotive
- Time of India
Trump's tariffs to add $2,000 to car prices
New tariffs introduced under former US President Donald Trump are expected to increase vehicle prices by nearly $2,000 each, according to a report by consultancy AlixPartners. The added cost is likely to be passed on to consumers, affecting both car affordability and future electric vehicle (EV) adoption in the United States. AlixPartners estimates that the $30 billion cost burden from the tariffs will lead to about one million fewer vehicles sold over the next three years. However, it still projects total US auto sales to reach 17 million units by 2030. Tariffs to impact consumers and sales 'These tariffs bring a big wall of cost,' said Mark Wakefield, global auto market lead at AlixPartners. 'We see consumers taking the majority of the hit.' According to the firm, automakers are likely to absorb about 20 per cent of the tariff costs, passing on the remaining 80 per cent — or roughly $1,760 per vehicle — to customers. General Motors and Ford have already forecast a tariff impact of $5 billion and $2.5 billion, respectively, with plans to offset some of the burden through price adjustments. Despite the anticipated short-term decline in vehicle sales, AlixPartners believes the effects will moderate over time as the US negotiates new trade agreements. The 25 per cent tariff on imported vehicles is expected to eventually reduce to 7.5 per cent on assembled cars and 5 per cent on parts. 'This tariff wall is not likely to last forever,' Wakefield said. EV sales forecast slashed The consultant also warned that the rollback of EV incentives — such as the $7,500 tax credit for battery electric vehicles — could significantly affect the US auto industry's transition to electric mobility. 'That will steer car buyers away from EVs,' Wakefield said, noting that many consumers will prioritise cost and continue purchasing petrol-powered vehicles. AlixPartners has revised its 2030 EV forecast for the US sharply downward, predicting that battery electric vehicles will make up just 17 per cent of new car sales — a decline from its previous estimate of 31 per cent. Internal combustion engine (ICE) vehicles are now projected to account for 50 per cent of US car sales by 2030, up from a prior estimate of one-third. Traditional hybrids are forecast to make up 27 per cent of the market, while plug-in hybrids and extended-range EVs are expected to account for only 6 per cent, compared to the earlier prediction of 10 per cent. Wakefield added that the shift in policy direction could lead American automakers to rely more heavily on foreign platforms. '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 a remark highlighting the potential consequences of this trend, Wakefield concluded: 'They'll have the world's best V8 engines by 2028. They'll probably also have the world's only V8 engines by 2028.'
Time of India
20 hours ago
- Automotive
- Time of India
Americans may pay $2,000 more for each new car, thanks to Trump
Trump's plan of 'Making America Great Again' is likely to backfire and punish its own people and industry. His $30 billion worth auto tariffs are set to have a direct impact on car buyers, or plainly put, the Americans themselves will be bearing the brunt of it. As July approaches and with the tariffs taking effect, car prices are expected to shoot up by almost $2,000 per vehicle, driving up already high US auto prices, Bloomberg reported citing consultant AlixPartners. The firm estimates that automakers will pass along about 80 per cent of the tariff costs directly to customers, who will be paying around $1,760 more per car on average. As a result, US auto sales could drop by 1 million vehicles over the next three years. However, the firm expects a rebound to 17 million annual sales by 2030, a million more than last year, as tariff effects begin to ease. 'These tariffs bring a big wall of cost,' said Mark Wakefield, global auto market lead at AlixPartners, during an online briefing. 'We see consumers taking the majority of the hit.' Major US carmakers have already flagged the impact. General Motors expects a $5 billion hit from the tariffs this year, while Ford estimates $2.5 billion. Both companies say they plan to manage the blow, partly by adjusting prices. Live Events AlixPartners' forecast is less severe than others because it assumes tariffs will reduce over time as trade talks progress. The current 25 per cent tariff on imported cars may fall to 7.5 per cent on fully assembled vehicles and 5 per cent on parts, with even lower rates for vehicles that qualify under the US-Mexico-Canada Agreement (USMCA). 'This tariff wall is not likely to last forever,' Wakefield added. EV incentive Cuts may stall American auto innovation While tariffs may ease in the long term, a more lasting concern for the auto industry is the Trump administration's move to cut electric vehicle (EV) incentives. AlixPartners warned that scaling back support measures, such as the $7,500 consumer tax credit for EVs, will push buyers toward cheaper, gasoline-fueled vehicles. 'Car buyers will follow their pocketbook,' Wakefield said. As a result, the firm has sharply cut its forecast for US EV adoption. It now expects EVs to make up only 17 per cent of total vehicle sales in 2030, down significantly from an earlier projection of 31 per cent. Meanwhile, traditional internal combustion engine vehicles are expected to make up 50 per cent of the market, up from 33 per cent. Hybrid models are forecast to grow modestly to 27 per cent, while plug-in hybrids and extended-range EVs are expected to shrink to just 6 per cent, down from 10 per cent. For consumers, that could mean fewer affordable electric options and a deeper dependence on older, fuel-based technologies, just as the rest of the world moves ahead. The shift away from EVs could leave American automakers falling behind global competitors, especially as companies in China continue to lead in electric vehicle technology. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' Wakefield said. With fewer incentives and higher costs, the US risks becoming an outlier in clean transportation. 'They'll have the world's best V8 engines by 2028,' Wakefield added. 'They'll probably also have the world's only V8 engines by 2028.'
