Source: Interesting Engineering Archive: Ghost
Audi has temporarily suspended all vehicle deliveries that arrived at U.S. ports after April 2. The German carmaker is reacting to a new 25% import tariff announced by U.S. President Donald Trump. According to a report by German newspaper Handelsblatt, the affected vehicles will not be distributed to U.S. dealers for now.
A company spokesperson confirmed that Audi has around 37,000 vehicles already in U.S. inventory. These cars were shipped before the new duties came into effect and are expected to meet dealer and customer demand for the next two months.
According to reports, Audi informed its dealer network that it would freeze all new shipments into the U.S. from April 2 “until further notice.” The spokesperson added that no deliveries beyond that date would be made until the situation becomes clearer.
Audi’s parent company, Volkswagen AG, is also making changes. The company plans to add import fees to the sticker prices of its U.S.-bound vehicles, further raising costs for consumers.
Industry-wide reactions to Trump’s tariff
Audi is not alone in taking drastic steps. Jaguar Land Rover (JLR), the British automaker owned by India’s Tata Motors, also announced a halt in vehicle deliveries to the U.S. for April. In a statement, JLR said that its “short-term actions” were directly tied to the tariff change. The U.S. accounts for about 25% of JLR’s annual global sales, with nearly 100,000 units shipped each year.Another major automaker, Stellantis—the parent company of Chrysler and Jeep—has also responded to the tariffs. It announced a temporary halt in production at one Canadian and one Mexican plant just days after the April 4 tariff announcement. As a result, 900 U.S. employees will face temporary layoffs.
Even luxury brand Ferrari is not exempt. The Italian company said it would raise prices by 10% on certain models delivered after April 1. This could push the cost of a typical Ferrari up by as much as $50,000.
Audi may be hit especially hard due to the location of its manufacturing. Its best-selling Q5 SUV is assembled at its plant in San José Chiapa, Mexico, which makes it a direct target for the new tariffs. Last year, Audi sold nearly 57,000 Q5s in the U.S.—more than a quarter of all its U.S. sales. The rest of its vehicles are imported from Europe, including Germany, Hungary, and Slovakia.
These developments are forcing Audi to rethink its manufacturing and shipping strategies as it tries to stay competitive against BMW and Mercedes-Benz, both of which have U.S.-based factories.
Volkswagen produces vehicles in Chattanooga, Tennessee. BMW has a large plant in Spartanburg, South Carolina. Mercedes-Benz manufactures its cars in Tuscaloosa County, Alabama.
Carmakers generally keep less than three months’ worth of inventory in the U.S., according to Cox Automotive. That gives companies like Audi a small cushion while they work on new logistics and pricing strategies.
European leaders push back as tensions rise
Leaders from Europe are pushing back against the new U.S. tariff plan. On Monday, European Commission President Ursula von der Leyen met with automotive executives to discuss how the EU could respond. European auto stocks took a hit after the news, with fears of higher prices and reduced demand growing across the industry.The European Automobile Manufacturers’ Association (ACEA) urged President Trump to reconsider the tariffs. “The ongoing volatility of global markets is only increasing trade barriers and costs for businesses. Tariffs do nothing but raise prices for consumers across Europe, the United States, and the wider world,” said Sigrid de Vries, Director General of ACEA.
Ford rolls out discounts — and Volvo, Mercedes eye upping US production as Trump’s auto tariffs rev up
Source: NY Post Archive: Ghost
Ford rolled out across-the-board discounts on multiple models on Thursday to keep shoppers coming into the showroom, hours after President Trump’s 25% tariff on auto imports kicked in.
The Detroit car giant plans to lean on its healthy inventory to offer customers thousands of dollars off as competitors hike prices to absorb tariff costs.
Trump’s 25% levy on foreign-made cars took effect after midnight on Thursday. Starting May 3, the tax will also apply to imported car parts, which can add to costs for US manufacturers.
The most impacted foreign-made cars could jump in price by as much as $20,000, while the least affected models — those assembled in the US with largely American-made parts — could cost an additional $2,500 to $5,000, according to a recent analysis by the Anderson Economic Group.
Ford’s “From America, For America” deal — running through June 3 — will offer all customers the same discount given to employees.
The exact deal varies from vehicle to vehicle, but it “could mean savings of thousands of dollars on a vehicle,” a Ford spokesperson told The Post.
Discounts can be stacked on top of other dealer promotions, and are eligible on 2024 and 2025 gas, hybrid, plug-in hybrid and diesel Ford and Lincoln vehicles.
The discount does not include Ford’s high-end Raptors, specialty Mustang and Bronco vehicles, the 2025 Expedition and Navigator SUVs and its Super Duty trucks.
“In times like these, talk is cheap. At Ford, we believe in action,” the automaker said in a press release.
Foreign automakers were also quick to discuss potential supply chain shifts to help avoid the hefty tariffs.
Volvo said it was looking to make more cars and move production of another vehicle model to its South Carolina factory — its first US facility, which was built in 2018.
“We will have to increase the number of cars we build in the US, and surely move another model to that factory,” CEO Håkan Samuelsson told Bloomberg.
Volvo “will have to look closely” at what other model it can add to US production lines, he added.
During Trump’s first term, Volvo scrapped plans to ship sedans built at its new South Carolina plant to China due to tariffs imposed by both nations.
But the automaker seems to be taking a different approach this time around.
“The global car industry, as well as Volvo Cars, is facing increased geopolitical complexity and regionalisation. This makes Volvo Cars’ long-held strategy of building where we sell even more important,” a Volvo spokesperson told The Post.
“Right now, we are ramping up our production of the EX90 in the US to grow volumes and thereby also reduce costs,” they added.
Volvo needs to “learn from the Chinese how to localize,” Samuelsson said during an annual shareholder meeting.
Samuelsson – who retook the helm at Volvo this month from his short-lived successor Jim Rowan – said the company will need to cut production costs to protect its profits.
Mercedes, meanwhile, signaled it’s weighing whether to shift some manufacturing over to the US to avoid additional costs from the tariffs.
“We’re still assessing the impacts of these tariffs,” Jörg Burzer, the automaker’s production chief, said during a company event in Germany on Thursday, according to Bloomberg.
“We have made some plans, but flexibility is absolutely key,” he added.
Mercedes didn’t immediately respond to The Post’s request for comment.
Shares in Ford, Volvo and Mercedes fell on Thursday by 4.7%, 4.3% and 2.5%, respectively.
Ford’s deal is reminiscent of General Motors’ “Keep America Rolling” promotion that came soon after the terrorist attacks on September 11, 2001, and helped boost US vehicle sales during an otherwise bleak economy, Bloomberg earlier reported.
Ford may also be trying to clear out its inventory. As of the end of March, it had 74 days supply of vehicles on lots, compared to General Motors’ 50-day supply, according to JP Morgan Research.
