31-03-2025, 11:51 AM
![](https://i.imgur.com/CLvY2jA.png")
Why Trump's auto tariffs will hurt his working-class supporters
31-03-2025, 12:57 PM
......
New cars priced under US$30,000 are already rare as the average new-vehicle price approaches US$50,000. The only way automakers can eke out profits on economy cars, analysts say, is to build them in nations with lower manufacturing costs.
A Reuters review of data from two auto research firms found just 16 models with an average sticker price less than $30,000 and only one, Toyota's Corolla, that is assembled in the United States. All others are made in Mexico, South Korea, or Japan.
......
Many of those foreign cars are made by American automakers
......
Detroit automakers General Motors, Ford and Stellantis, the maker of Jeeps and Ram trucks, have discontinued most entry-level models in recent years to focus on highly profitable trucks and SUVs. That has left the economy-vehicle market almost entirely to Asian automakers.
“I just don't see them ever really going back there,” said Karl Brauer, executive analyst at iSeeCars.com.
......
The under-US$30,000 models built by Nissan, Mazda, Hyundai, Kia, Toyota, Subaru, and Volkswagen are almost all built in Mexico or South Korea
......
The margins on these vehicles are low, and their buyers are price-sensitive. That means high tariffs might make them impossible to sell at all
......
Cox Automotive estimates that 25% tariffs will add US$3,000 to the cost of a U.S.-made vehicle and US$6,000 to vehicles made in Canada or Mexico.
New cars priced under US$30,000 are already rare as the average new-vehicle price approaches US$50,000. The only way automakers can eke out profits on economy cars, analysts say, is to build them in nations with lower manufacturing costs.
A Reuters review of data from two auto research firms found just 16 models with an average sticker price less than $30,000 and only one, Toyota's Corolla, that is assembled in the United States. All others are made in Mexico, South Korea, or Japan.
......
Many of those foreign cars are made by American automakers
......
Detroit automakers General Motors, Ford and Stellantis, the maker of Jeeps and Ram trucks, have discontinued most entry-level models in recent years to focus on highly profitable trucks and SUVs. That has left the economy-vehicle market almost entirely to Asian automakers.
“I just don't see them ever really going back there,” said Karl Brauer, executive analyst at iSeeCars.com.
......
The under-US$30,000 models built by Nissan, Mazda, Hyundai, Kia, Toyota, Subaru, and Volkswagen are almost all built in Mexico or South Korea
......
The margins on these vehicles are low, and their buyers are price-sensitive. That means high tariffs might make them impossible to sell at all
......
Cox Automotive estimates that 25% tariffs will add US$3,000 to the cost of a U.S.-made vehicle and US$6,000 to vehicles made in Canada or Mexico.
« Next Oldest | Next Newest »
Users browsing this thread: 1 Guest(s)
