Automotive Industry Trends

The tariffs are in. So what’s next? 25% on imported vehicles. Auto parts, including engines and transmissions are next. This isn’t theory anymore. It’s happening. Roughly 46% of vehicles sold in the U.S. last year were imported. That’s almost half of the new car market now hit with an added cost. Some automakers are more exposed than others. Wall Street’s already reacting. Forecasts show earnings getting hit. Margins thinning. Volatility rising. So where does that leave us? At Honda and Acura, the impact is real, but it’s not the full story. → Honda’s been building cars in the U.S. since 1982. → Acura’s key models (the MDX, RDX, TLX) are all assembled in Ohio. → Roughly 70% of the vehicles we sell here are made here. That matters. But even “U.S.-built” doesn’t mean fully U.S.-made. Parts come from dozens of countries. No automaker is insulated. So what now? We don’t spin. We prepare. Here’s how I’m thinking about it as a dealer: 1. We need to lead with transparency. → Customers will ask questions. Some already are. → Don’t sugarcoat it. Don’t dodge it. → Explain the facts. Educate them. → Let them know which models may be affected. Which ones aren’t. 2. Be ready for price sensitivity. → $48,000 was already the average new vehicle price. → Now some are predicting up to $10K increases. → It’s going to impact how people buy, especially in the entry-level segments. → Think CR-V, HR-V, Civic, even Accord depending on build location. You’ll need to help customers rethink what value means. Payment, reliability, longevity. Show the total picture. 3. Train your teams and fast. → Sales need new focus. → F&I need sharper offers. → Service should expect more questions about parts availability and pricing. → Parts managers need to rethink sourcing if tariffs shift the cost curve. Every department is affected. So every department needs to be ready. 4. Control what you can. → We can’t control trade policy. → But we can control how we respond, how we show up, how we lead. Your culture, your inventory mix, your pricing strategy, your customer experience and that’s where the real work is. This isn’t about panic. It’s about preparation. Customers want confidence right now. So give it to them with facts, with clarity and with a calm plan forward. No noise. No drama. Just real leadership. — Brian ————— “Everything will be OK in the end, and if it’s not OK, it’s not the end”. ~ John Lennon

The latest front in the trade war could cause sticker shock for car buyers and chaos for the auto industry. Wolfe Research, LLC estimates the tariffs on autos & auto parts will increase car prices by at least $4,000 -- and likely more. But that could hurt demand given that car prices are already near all-time highs. Bank of America estimates the tariffs will hurt US auto sales by 2.5 million to 3 million vehicles. It's too early to say if tariffs will cause a major return of auto jobs shipped overseas. But it can't happen overnight. And it would require clarity on where tariffs will be long-term. Auto CEOs must "calculate the cost and return over decades. But it’s hard for them to predict the next 10 minutes right now," Kelley Blue Book editor Sean Tucker told me. More on CNN with Omar Jimenez and Brianna Keilar

Will Tariffs Reshape the Automotive Industry? The U.S. has imposed 25% tariffs on imported cars and auto parts, a move that could significantly impact the automotive sector—not just in terms of costs, but also in supply chains and production strategies. How Will Automakers Be Affected? - Tesla appears to be in a strong position since its cars are manufactured in California and Texas, but it may still face cost pressures due to importing some components. - General Motors heavily relies on overseas manufacturing, particularly in Mexico, where imported vehicles accounted for 40% of its U.S. sales. - Ford produces 80% of its vehicles domestically but depends on imported key components like engines, making it vulnerable to additional costs. Impact on Prices and Consumers Analysts predict that car prices could rise by approximately $6,700 per vehicle. The key question: Will automakers absorb these costs, or will they pass them on to consumers? Price Comparison After Tariffs Higher tariffs increase the cost of imported cars, narrowing the price gap between them and locally manufactured vehicles. For example: 📌 Tesla Model 3 (U.S.-made) → Starting price: $42,490 📌 BYD Han EV (imported from China) → Price before tariffs: $32,800, after 25% tariff: $41,000 The result? A smaller price gap, making local brands like Tesla more competitive against Chinese manufacturers. Boosting Investment in U.S. Manufacturing To adapt to these policies and reduce reliance on foreign suppliers, Hyundai Motor has announced massive investments in the U.S.: ✅ $21 billion by 2028 to expand domestic EV production. ✅ $7.6 billion for a new plant in Georgia, with an annual capacity of 500,000 vehicles. ✅ Thousands of new jobs and a stronger local supply chain. 💬 What do you think? Will these tariffs drive local industry growth, or are they just an added burden on consumers? #Economy #AutomotiveIndustry #Tariffs #EVs #Manufacturing #GlobalTrade

The auto industry has been bracing for impact from President Trump’s trade war — just not this hard, this soon. The commander-in-chief just announced 25% tariffs to begin April 2 on “all cars that are not made in the United States,” while vehicles built inside the country will face “absolutely no tariff.” No exemptions for Canada. No leniency for Mexico. Full speed ahead, precisely as President Trump has signaled for months. Shares of Ford, General Motors, Stellantis and Ferrari dropped after hours. Meanwhile, Tesla — which makes the cars it sells in the US domestically — saw its stock climb. Wall Street’s immediate negative reaction, illustrated by the stock declines for most automakers, suggests investors had priced in a less aggressive tariff agenda. Some analysts estimate that tariffs, if they remain in place, could add $75 billion a year to automaker costs. The fear for everyday Americans, naturally, is that consumers end up footing the bill. Full analysis in Opening Bell Daily — including insights from Wedbush Securities's Daniel Ives! 👇

It’s a small club that Rivian, Tesla, and Volvo Cars are members of, but end-to-end software is crucial for auto OEMs to avoid extinction. 🪦 To be clear, BYD and other Chinese OEMs are in this club or are trying to, but as the auto industry races toward electrification and autonomy, one thing is becoming crystal clear: the future belongs to those who control the software stack. Without an end-to-end software platform, automakers risk becoming the Foxconn to someone else’s Apple—just a hardware assembler in a value chain dominated by those who own the operating system, user experience, and data. Why is owning the software platform so important? 1. User Experience = Brand Loyalty In a software-defined vehicle (SDV), it’s not just the ride quality—it’s the interface, the over-the-air updates, the seamless integration with your digital life. The UX is where customer loyalty is won or lost, and if you don’t own it, you can’t differentiate. 2. Data Ownership = Competitive Advantage - SDVs are rolling data centers. From driving behavior to battery health, the real value lies in the data. Without software control, you’re giving up the insights that drive smarter products, services, and monetization models. 3. Battery + Software = Core IP As Tesla has shown, vertical integration of battery tech and software enables control of cost, performance, and scalability. Let someone else own the OS or the BMS, and you’re forever dependent—and vulnerable. 4. Pace of Innovation- Software companies iterate weekly. Traditional auto cycles move in years. If you don’t own the platform, you’ll always be lagging behind the pace of innovation set by someone else. That’s why companies like BYD, NIO, GEELY, and of course Tesla and Rivian are betting big on building vertically integrated, end-to-end platforms. #SoftwareDefinedVehicles #EVs #AutomotiveInnovation #BatteryTech #OEMstrategy #FutureOfMobility #Autotech #DigitalChassis https://lnkd.in/gth5f2SU

Driving Deflation? The 2024 average used car price is $17,934, down 8.9% y-o-y; down 24% from its peak in January 2022, according to the Manheim Used Vehicle Value Index computed by Cox Automotive. The bear market for used cars has run for 22nd straight months. New vehicles represent ~4% of CPI, while used car prices represent ~2% of CPI. Below, I show the used car price chart with the black line showing Manheim index covering all used car sales. EV resales have fallen the hardest as Tesla resales were bid up during COVID and have since fallen back to earth, with a used cars going for 68k during COVID and now trading at an average price of 32k. A 3-year old Tesla v. 3-year old combustion engine auto makes for good relative value. The average retail-wholesale spread which represents the dealer profit margin is ~10-12% for used cars. Cars demand during COVID soared, but new sales and secondary sales. With a supply chain shortage, dealers were unable to fulfill this demand, so demand drove up used car prices which were artificially high during COVID. Since then, used car prices have fallen for 22 consecutive months with a bottom that I believe will be established later this year as prices have begun to normalize. Leasing rates should decline as the Fed begins to lower rates, which will proved supportive for used car prices. Of course, the age, model, and health of the economy are key factors, however, demand-supply is in better balance. Price parity has now been established, with the best bargains found in used car market in the past 3-years, a development that has contributed to normalization of inflation, a welcoming development.

Your Car Could Be Held for Ransom: The Rise of Automotive Cyber Attacks - Autoblog In a world of keyless ignition and smartphone apps, hackers have found a new target: your car. Why Car Cybersecurity Can’t Be Ignored Imagine treating a ticking time bomb as background noise. That’s how many in the automotive industry have approached ransomware. Ransomware now accounts for 45% of all automotive cyber incidents so far in 2025, making it the leading threat to the sector. The scale of these attacks is also increasing: large-scale incidents affecting millions of vehicles more than tripled in 2024, and nearly 60% of all reported cyber events in 2023–2024 were large-scale in nature There is strong evidence that the number of publicly disclosed automotive ransomware attacks is only a fraction of the true total. Many incidents are never disclosed. 148 publicly disclosed automotive cyber incidents were tracked in just the first quarter of 2025, but cybersecurity experts warn it is just getting started: “The pieces are in place for a transition from today’s manual, car-modding hacks to more harmful and larger-scale attacks,” and that criminal activity on the dark web points to a much broader, largely hidden threat landscape. In a world where drivers expect more than just horsepower, digital security has become as essential as the engine itself. The New Threat in the Driver’s Seat Today’s cars are marvels of connectivity, but this convenience comes with risk. Picture a journalist at a dealership, eyeing rows of sleek sedans. Each keypad and dashboard screen seems harmless—until malware hidden in the firmware threatens to lock down the entire vehicle. That 45% breach statistic isn’t just a number; it’s a warning. What if, the next time you start your car, you’re met with a ransom note instead of the familiar engine hum? #cybersecurity #automobiles #connectedcars #ransomware #riskmanagement

AI is rapidly transforming the auto manufacturing industry in several key areas, enhancing efficiency, safety, and innovation. Here are some of the top trends in AI within the automotive manufacturing space I have learned from Helen Yu and Chuck Brooks: 1. Smart Manufacturing with AI Predictive Maintenance: AI-powered systems can predict when machinery is likely to fail, reducing downtime and maintenance costs. Sensors and machine learning models help predict equipment failure, allowing manufacturers to schedule repairs before problems arise. AI-Driven Quality Control: Computer vision and deep learning are used for real-time defect detection, ensuring that every part meets quality standards. AI systems can identify minute defects in materials, welds, and components that are often too small for human eyes. Robotics and Automation: Collaborative robots (cobots) work alongside human workers, performing repetitive tasks like assembly, painting, and welding. These robots use AI for flexibility, adapting to various tasks without the need for reprogramming. A great example here in Savannah, Georgia is at the Hyundai Motor Company (현대자동차) META plant. 2. AI in Design and Prototyping Generative Design: AI can assist in creating optimized designs for car parts and structures. Generative design algorithms analyze and generate thousands of design variations based on input parameters, optimizing for weight, strength, and cost. Virtual Prototyping: AI-powered simulation tools enable manufacturers to create and test prototypes virtually, speeding up the design cycle and reducing the cost of physical prototypes. This also allows for better performance testing before the first physical model is built. Best Regards, Professor Bill Stankiewicz, OSHA Trainer, Heavy Lift & Crane Instructor Savannah Technical College Subject Matter Expert International Logistics Member of Câmara Internacional de Logística e Transportes CIT - CIT at The International Transportation Industry Chamber

The automotive industry is undergoing significant transformation, driven by autonomous and software-defined vehicles. What could slow down progress? The constraints of legacy data and the need to generate and validate massive amounts of new #data to power these new technologies.   Enter Generative AI. In this Automotive News article, Richard Whitford, Deloitte’s Automotive AI and Data practice leader, shares why GenAI isn’t just a solution, “it’s a catalyst for change.” Here are 4 ways GenAI can help transform the automotive industry: 1. Data simulation: Creating synthetic data that mimics real world data helps to accelerate the training of AI models and speeds up the development of new automotive technologies. 2. Improving code quality and resource efficiency. Generative AI can standardize and streamline software development processes. 3. Simulation and quality control. Creating realistic simulations and synthetic data for quality control can significantly reduce development cycles and improve product quality, leading to safer vehicles. 4. Enhancing customer experiences. GenAI can help create a unified journey across all touchpoints and enable more personalized in-car experiences. Take a deeper dive here https://bit.ly/4fOmUpc to learn how automakers can prepare for a GenAI-fueled future.  

For Halloween last year, I shared a post about what kept me up at night as a Chief Engineer. I'd like to expand on that by sharing more about what didn't - mechanical design. Let me explain. As someone who is deeply involved in the industry, and was a longtime designer of mechanical structures and systems, I often find myself discussing the importance of looking beyond mechanical CAD when it comes to digital twins and digital transformation. Here’s the thing – while CAD crucial to the foundation of the digital twin, it's just one piece of the puzzle for today’s fast paced innovation. Because it is visually appealing, mechanical CAD is often what people think of when they hear about digital twins. In times past, I was guilty of that myself. But the true value of digital transformation can only be realized by fully integrating mechanical design with electrical, electronics, and semiconductor design, in a multi-domain environment that seamlessly connects to downstream manufacturing and delivery processes. The integration of these domains along with requirements, simulation, analysis, and Bill of Materials on a robust PLM foundation creates a comprehensive digital twin that connects every aspect of product development and production. This holistic approach ensures that every component, from electrical circuits to semiconductor chips, is accurately represented and optimized within the digital twin. The ability to seamlessly connect mechanical, electrical, and electronics design is what sets industry leaders apart, enabling them to deliver innovative solutions that drive digital transformation. Further, by integrating IoT-enabled hardware, software, and digital services, companies can create a cohesive digital ecosystem. This integration ensures that every component is accurately represented and optimized within the comprehensive digital twin, providing real-time insights and enabling better, and faster, decision-making. In our industry, it's easy to get caught up in the visualizations, but the disruptors of tomorrow are looking beyond these and  holistically adopting digital transformation today. A broader understanding of digitalization, and the ability to utilize the full potential of digital technologies, can provide a provable and measurable competitive advantage in the increasingly tech savvy market landscape. So, next time you think about digital twins, remember – it's more than just 3D geometry and visualizations. It's about creating a comprehensive digital ecosystem that brings real value to the products of today and tomorrow.