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
Hey, it’s our third birthday. If you love the site and support us by being a member, thank you! If you’re not a member and would like to become one, click this link to save 13.33% on any annual membership, or go here and use the code threeisamagicnumber. In the meantime, please enjoy De La Soul’s “The Magic Number.”
The Big Question
Are you more or less encouraged to buy a new car right now?
Top photo: Depositphotos.com
Since I’m not in the US, I’m just glad that the car I’m considering next year is entirely imported. I’m not touching US products for the foreseeable future.
Hopefully someone other than LG and Samsung start importing stoves since I’ll need one of those next year.
Miele and Gaggenau
We leased a new car last month, mainly as I was really tired of the Forester shenanigans, but also due to the current climate and not sure how things will be in the near future.
Not really due for a new hot hatch for a couple years, but been stalking Golf Rs. When the current gen Golf 8R came out in 2022 they were greeted with ADMs and long waits, but supply has passed demand and VW had hundreds here over the winter. Saw one with a manual sit at a Sioux City dealer for at least 4 months, week or so ago it got traded to an MSP dealer and gained $3500 in dealer add ons. At those prices I can wait, but a literal boatload of Golf 8.5Rs with a few more HP has hopefully been or is being unloaded, hopefully they get through customs quick before Trump Tariff’s ’em!
“The Magic Number,” is a masterpiece. I saw De La Soul at Lincoln center in January. They were obviously not in peak form (RIP, Dave) but it was a momentous occasion for a rap act to headline at LINCOLN f*ckin’ Center!
Y’all are so damn pessimistic! In only a very short decade or so, American Manufacturing (registered trademark) will be completely revitalized and every single one of us will have a posh job in a brand new factory making cars, sewing T-shirts, snapping phone cases together, and other paycheck-providing activities! Those poor deluded souls who currently have government jobs will realize that they’re far better off doing God’s factory work instead of advancing the devil’s work of medical research, IRS administration, and preventing tuberculosis in foreigners. (That includes those lucky folks in the 51st state of Greenland, who will daily show their gratitude to the U.S. for absorbing them.)
Plus we won’t have to worry about Social Security, because life expectancy will drop to 45. It’s a win-win!
Tariffs have two impacts. They destroy relationships with other countries, and they shift taxes to those with the lowest incomes. Both things the current administration and its death cult of followers revel in. UAW members will quickly learn that the increase in their cost of living will far outpace any potential increase in their income.
Love your optimism, but I don’t think people will learn a lesson, at least not for long. It seems we have a short collective memory for stupidity.
I believe you are right. I should have used “experience” rather than “learn.”
For some reason that made me laugh. We are all going to have some “experiences” in the near future, that’s for damn sure!
I’ll just wait for the upcoming depression to lower prices before I buy.
If there are jobs still around.
I bought a house end of summer and then snagged a CPO Civic early fall, when I knew I was in a spot to buy it outright, so I hope to be set on any major purchases for a while. Any more/new car is a “want” at this stage.
Most of my friends are OK in the interim with their vehicles but some are amid house projects and were already debating on pre-buying appliances. One household is planning a larger vehicle by the fall to gain more space but not set on a model yet. Some family members have a bit of the itch but have paid off cars or close to it, and I think they’re planning to ride it out a bit; they’d probably go used so keeping a close eye on how prices are affected there.
What shit show.
This reminds me that my check engine light just popped on in the GTI. Gulp.
But I don’t ever buy new cars.
Don’t worry, prices on used cars will go up proportionally. Repair prices more so if the car uses imported parts.
I bought my Civic Si in November so the next car would be for my wife and her CR-V hybrid is only at 50K while being a couple months from being paid off. Outside of winning the Powerball in the near future, we won’t be buying another car for several more years. Perhaps we will be more inclined to participate in the economy at that point.
We bumped our plans for a new car for my wife from the casually looking stage to the buy now stage after the election but before inauguration knowing that there was an incoming shit show. Feeling pretty good about that, and locking in a 5 year fixed mortgage at 2.5% a couple of years ago.
My car’s getting to that mileage where the CVT’s going to begin many attempts to end itself. I’m beating my own ass mentally over not yeeting the thing earlier, but the comparatively cheap insurance payment kept me from getting an older Honda Fit or something. I’m definitely not buying new, though. Can’t stand all the intrusive systems in modern cars. And these tariffs just add another reason for me to warn other people off of it.
It kinda feels like we’re going to have the same situation as Saxony was post-German Reunification where people keep forty year old shit going because only the rich can afford to buy anything new.
And the UAW wonders why nobody likes them.
Sure, when you take into account inflation cars aren’t as expensive as they feel right now, but they’re also definitely not cheap, and it’s an epic failure of room reading to suggest that anything is cheap right now. Maybe the next big announcement will be from the poultry industry claiming that eggs are too cheap and we need to tariff imports of those too.
That was sarcasm, by the way. I know it’s hard to tell these days.
And do what, exactly? Two seconds isn’t long enough for a driver who is paying attention in the first place. For one dozing off while using ADAS they might as well not have bothered.
I’m retroactively pleased I was forced into buying a new truck last summer. So I have one new vehicle which is under warranty for another 2.5 years or so, and a cockroach-like gen 2 Prius that will probably outlive me. I should be good for quite a while, barring any disasters or suicidal deer. Which, when I put it that way, makes it sound like I’m probably screwed anyway. 😀
Since buying my new ’24 Forte GT at well below list back in February, I’ve been checking the last few ’24s left in stock at dealerships out of a morbid curiosity as to how low prices might go. Last week the dealer in Miami jumped the prices to nearly MSRP and a check of dealers nationwide showed that pretty much everybody else had raised prices to MSRP.
Dealers smell blood in the water and the feeding frenzy has started, my friends.
I bought a new Civic Sport back in July and we bought a house a month ago. I’m fully done on major purchases for the foreseeable future and am now planning on keeping the Civic until it dies. I was going to get a Prelude when they came out later this year, but the tariff crap is going to push it beyond the budget. So good job on that economy revitalization, donald.
Maybe this a supporting factor to encourage more people to learn to work on their own cars more so than it is a reason to go out and buy a new car right now. My mother will not drive a car that has more than 100k miles on it. And she almost always purchases new. I just don’t get it. Buy a reliable vehicle that’s a few years old. Find out it’s weak points, address those, and just keep up with maintenance. My wife and I own three vehicles. Two of them are antiques now, which in my state is over 25 years old. My wifes 2012 sequoia has over 200k miles on it and I would trust it to go anywhere. My daily is a 98 cherokee which has 130k on it and I would trust it go anywhere as well. This is because I have addressed any and all common issues they may have. They were also very reliable vehicles to start with.
“encourage more people to learn”
There’s your problem.
A lot of people are still of the mentality that a vehicle with over 100k miles is a ticking bomb – which I understand to some extent if that was the case for most of their lives and the cars they owned.
What I don’t understand is people buying new cars known for their longevity and still not hanging on to them any longer.
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.
Guess what countries are not part of “liberation” day? Anything in Central America is not targeted so far. I should not be saying this since is private information but I have been in the industry for +10 years, the skills and labor to make wire harnesses are not available in this country and what is going to happen is that things will move to other countries instead of Mexico but they cannot move everything.
OEMs already said we are not absorbing the 25% on electrical parts and the margins on these products is very low.
I am not buying a new car, my old beaters are my survivors on times like this.
Picked up a new 25 Ford Maverick Lariat Hybrid AWD w 4K tow package on the 29th of March. Not only did I get a well below-MSRP locked in price (and no dealer add-ons or BS) but I also purchased a first-time-for-me 10 year FORD premier extended warranty before the price bump on that too. Those warranty program prices are about to sky-rocket and locking in the one-time comprehensive repair costs at pre
turdtrump-tax bump 2025 dollars seemed like a no-brainer. The costs for the extended warranty with 100K miles and no deductible wasn’t too bad even if you don’t take the tax on parts and 10 years parts and service labor of inflation into account. Yes we plan on keeping the truck 10 years. I’m just retired and don’t plan on replacing it.I feel for anyone late in the game for a Mav. There’s really nothing comparable right now if you want a 40+ MPG with 1,500 lb payload, AWD and 4K towing. The Santacruz is a gas guzzler wanna-be, and the other trucks out there may be more ‘truck’ but aren’t going to offer the efficiency or lower costs of the Maverick.
In fact, I feel for us all (and not just on the trashing of the US automobile industry) . Every vehicle price is going to go up. The ones with the turd-tax as well as the ones without. If your competition price goes up 25% you could still raise your price 24% and beat them while pocketing better margins. Used prices are going to go way up too.
Batten down the hatches y’all; it’s going to get rough!
Wife got a new job recently and is finally able to build some savings, but that is months to a year away. And the AC compressor in her car just died, but we just moved into a new place so none of my tools are unpacked and I don’t even have the space in the garage to do the work. Hard to build savings when our rent is higher, everything is higher, CoL is worse here, just feels like her car will never get replaced at this point.
If someone had a new car on the market that was compact, simple, minimal software, abusable and was something I was actually interested in, I would certainly be trying to buy quickly, sort of like Dec 2017 when I was in a rush to buy a Bolt before the EV tax credit maybe would disappear. But there’s nothing of interest out there.
Maybe some company will start selling kit cars, that are customizable, with each part mailed directly to the consumer from outside the country, one part at a time to take advantage of the $800 de minimis tariff exemption? That could be fun, if each part could come tariff free, and the consumer could assemble it all. I’m sure it would be super easy to register too…
The rising costs of shipping since the beginning of the pandemic has been wild. You’d pay more shipping the parts than for a car on the lot, before you even account for the part costs.
But I like where you’re head is at. There’s probably some workaround for a private citizen. Chevy can’t ship Traxes to Brazil before shipping them to the US to avoid the Mexico tariff, but you could probably pull it off without many questions.
When you buy something from overseas it goes through customs and has tariffs imposed whether you have it sent to your home or through an intermediary business (i.e. Amazon). tariffs are paid by the importer and included in the price. If you visit a foreign country, you can shop at the “duty free” store, but there are hard limits on how much and what value you can bring back without paying additional taxes.
What sucks is it’s not even a GOOD time to buy cars. Interest rates still suck mondo ass and the market was just starting to correct itself post COVID Wild West price gouging. I think if the tariffs weren’t on their way we were about to see cars finally start to get cheaper for the first time in forever…but NOPE! We’re going to add even more to their already grossly inflated price tags.
I’m genuinely not sure what to do. My wife is going to need a new car soonish and her heart is set on something Japanese because reliability is far and away her biggest concern. She specifically wants a CX90 and the sport trim with the base inline 6 would make for a mighty fine buy in the mid to high 40s. You get all leather everything, the upgraded sound system, some nicer exterior trim, etc.
…but for 25% more, or approximately the low 60s? Absolutely not. The value proposition is gone. But never fear, I’m sure a *checks notes* Explorer or Traverse will be just as solid as a Mazda or Toyota, right?! And they definitely offer hybrids, which as of now is a non negotiable for us on my wife’s next car, right?!?! I was told corporate America would provide beyond my wildest dreams thanks to the beautiful tariffs so Ford? GM? Hell…Doge? Anyone want to pony up a reliable hybrid hauler?
I’ve been asking GM to build a SUV based on the Colorado/Canyon. Hell, if we’re making wishlists, put the baby Duramax in it. I’d buy it tomorrow.
A nice interior in a hybrid or diesel would work for us. Shit that gets city fuel economy in the teens and fills up rental fleets will not.
That’s why we just bought a CX-90 for my wife. I believe I have previously discussed with you, our reasoning on it. Drove it 7 hours this weekend at 82 mph and managed 29 mpg. Quite pleased.
Yup. We may just have to rush out and buy one for my wife before shit hits the fan. We’re fortunate that being able to run out and buy before tariffs is even an option for us…it isn’t for most people
I hate to be “that guy” but the CX-50 is built in the US, if it was truly a desperate enough situation, could pick up a CX-50 Hybrid for reasonable money, and get a roof rack and the largest roof box Thule makes for about 2k total, which not as convenient as a larger overall car, would get you about the same cargo volume net at the end of the day for a “normal” car MSRP versus having to risk it on a brand that has a worse reputation for a reason.
You’re not “that guy” this is sage advice. Unfortunately space would be an issue. It’s me, her, a 9 month old/all his stuff and a 30 pound dog. Her 2015 CRV can take all of us and our stuff on a trip of reasonable length but without any room to spare. Our plan is to pull the goalie about a year from now to try for kiddo 2.
We’re just going to need more space. While we wouldn’t get a whole lot of use out of the third row in a CX90 or Highlander it and the added cargo space when folded would undoubtedly come in handy. And before anyone suggests it-the wife does not want a van. I’ve tried many times to sell her on the virtues of a minivan but she just won’t budge and I have to pick and choose my battles lol. If she wants a crossover she’s gonna get a crossover.
Ahh yeah fair, the dog transport always makes things far trickier, and the extra size and length really does come massively in handy. Heck my mom has a CX-9 and up until very recently, would still go for a roof box for any larger family trips. While I am single with no kids, my parents were massive proponents of the roof box for beach trips, since you can chuck every single bit of sand covered detritus into the box, track minimal (but always some) sand into the interior, and just flip the box over outside when done. Also great for awkward or long things, makes ski trips a breeze too since you won’t have to sacrifice seats.
Also, kids’ car seats are flippin huge. A lot of decently sized cars balk if you have 2+ kids in car seats and also dare to transport both parents at once with some bags.
Compare the prices vs the expected depreciation. If the tariffs go into hitting the CX90, you might come out ahead buying the CX50 now and trading it later on a CX90 when baby2 arrives.
After all, plans change and often those plans don’t stick to our precise schedules anyway. You might do better to just get what is most advantageous now and adjust to better situations when needed.
Of course, the situation could always be worse and you’d end up cursing me forever. As always, YMMV…
That’s the same trim my wife wants to replace her CX9. Unfortunately, or fortunately depending on how you look at it, none in stock within 200 miles of us in Soul Red. However, I just went through a career change so buying a new car is not the smartest idea since I’m a now a contractor instead of a company man. The goal is to convert this year to a full-time employee, then we will replace her car with my new employer’s company lease deals.
Like I said, I think the Sport trim is the best buy. You get the full leather interior, the Bose audio, nicer wheels, and some upgraded exterior trim…although it’s all black and I know people have mixed feelings about that, so I guess upgrade is subjective.
Near me they’re listed in the mid to high 40s. I think that’s the sweet spot. The higher output engine is tempting but it adds a lot to the bottom line, and while the top spec trims have super nice interiors you’re in luxury car pricing at that point and you’d need to be a real zoom zoom diehard to want a CX90 over an actual luxury SUV.
Regardless all of this is probably irrelevant as LiBeRaTiOn DaY hits. The tariffs are going to make the 50k Mazda a 62k Mazda and at that price point it’s an impossible sell. I know you said you just switched jobs but if you all can afford to buy now I’d probably go ahead and do it because all hell is gonna break loose.
I’m going to be very, very salty if we’re forced into a goddamn Traverse or Expedition or something because they’re so much worse than all the Japanese and Korean offerings…and color me skeptical that GM and Ford will just choose to make them better when their competition is gone. The enshitification must go on…
Buying a car requires money, and while I’m still waiting to find out how much insurance will pick up, the hospital just quoted me a gently used second-gen Cayenne GTS for my recent stay. I’m more worried about fixing the hoopties I’ve got.
I would like to encourage you all to buy me a gently used second-gen Cayenne GTS sooner rather than later, however, as rising new car prices tend to put additional stress on used-car prices and inventory. (Cool color and tow package mandatory. I have needs.)
Quick! Someone start a go-fund-me!
Ah yes, America’s Real Healthcare System.
I hate that there’s over a month of them processing this before I know. Like, I need to buy parts to fix my car sooner rather than later because of all this stupid tariff crap. Am I going to have enough leftover to fix the Lancer or am I dailying the 944 and “Reliable Transportation” (the bicycle). Pitter frickin’ patter. I have one car with aircon and it’s the one that needs the most work right now.
Yeah, our health care system seems irreparably broken. But, I was thinking to use the go-fund-me to get you the Cayenne. My favorite spice, by the way 🙂
Nah, I’m not gonna have people send money for a parsh on a website where those funds should be going to Bob’s Exploding Spleen Fund or whatever.
To your point about today’s musical selection, I hope this isn’t too controversial and off-topic for this site’s raison d’être, but let’s look at the data — there is scientific evidence I cannot cite that Blind Melon’s cover of “Three Is a Magic Number” is the best, most directionally correct.
Apples-to-apples, Shannon Hoon’s singing in “Three Is a Magic Number” is the system that is most robust.
Let’s circle back on this.
I agree. I love me some De La Soul, but that Blind Melon cover is awesome.
I bought a new EV last summer. Our old long distance vehicle was getting up there and I wanted out of a manual daily due to leg issues. Plus not knowing what would happen in 2025 made the decision easier.
My little camper needs new tires since they’re 5 years old and do lots of sitting. I just ordered a new set. All the tires in its size are imported and most are from China. It made sense to do so right now.