Automakers like Ford in solid April sales driven by panic buying amid tariff worries
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Ford Motor, Kia and Hyundai have reported solid US performance in April sales year-over-year as customers were panic-buying due to fears of possible tariff-induced price increases. This comes in the wake of the introduction of tariffs by the Trump administration that have unsettled markets and investors, with customers worried that car makers will pass on the cost tariffs to consumers. Therefore, customers rushed to purchase new vehicles ahead of a potential price increase. The frenzy seems to be waning if not already passed According to CNBC the tariff fear-buying started in late March and was sustained in April, driven by some automakers who offered special discounts or promised not to hike prices in the near term owing the President Trump’s tariff regime. “April results are dominated by the prospect of future vehicle price increases due to tariffs.” Thomas King, president of the data and analytics division at J.D. Power. However, the booming demand may be short-lived. King and Cox Automotive chief economist Jonathan Smoke revealed that the demand slowed in late April as new vehicle inventories tightened with prices rising following the earlier consumer rush. “The economy and auto market are transitioning to a world with higher tariffs on imports,” said Smoke on Tuesday. “The first phase of frenzy in the retail vehicle market seems to have already passed as April is ending with less momentum than it began.” Smoke. Smoke added that the higher costs and lower vehicle inventories are what are likely “sapping momentum and could lead to lower sales in future weeks.” Automakers including Ford enjoyed the consumer rush According to CNBC, automakers cashed in on the consumer rush while it lasted. For instance, Ford recorded a 16% year-over-year jump in April sales, supported by consumer and ongoing “employee pricing” program that the company launched when Trump’s…
Filed under: News - @ May 1, 2025 10:27 pm