Tariff Turmoil: GM and Ford Q1 Sales in the Crosshairs

Ladies and gentlemen, buckle up! The auto industry is in for a wild ride as GM and Ford report their Q1 sales amidst the looming threat of Trump's tariffs. This is not just any storm; it's a perfect storm of uncertainty, price hikes, and potential market disruption. Let's dive in and see how these titans are navigating these treacherous waters.



First, let's talk about Ford. Their total vehicle sales declined 1.3% year-over-year, but don't let that fool you. Their retail sales—excluding fleet business—rose 5% year-over-year, driven by a 19% surge in March. Why the surge? Consumers are rushing to dealerships to buy vehicles ahead of expected price hikes linked to tariffs. This is a classic case of FOMO—Fear Of Missing Out—on lower prices. Ford's F-Series pickup sales jumped 24%, and the Maverick had its best month ever in March, tallying 19,000 units sold. But here's the kicker: Ford's Mustang Mach-e, one of their most popular EVs, is imported from Mexico. With a 25% tariff looming, this could be a game-changer.

Now, let's shift gears to GM. Their US sales jumped 17% year over year to 693,363 units, powered by trucks and EVs. GM is now No. 2 in US EV sales, behind Tesla. But here's the catch: their two volume sellers, the Equinox EV and Blazer EV, are made in Mexico. The Equinox EV starts at around $35,000, and with a 25% tariff, that could add a whopping $8,750 to the price tag. Ouch! GM's EV sales jumped 94%, but this growth is largely driven by models made in Mexico. The tariffs could reverse this trend, as the increased costs make these models less competitive.



So, what are these companies doing to mitigate the impact? They're stockpiling vehicles, lobbying for tariff exemptions, and considering increasing domestic production. But will these strategies be enough? Only time will tell. The market hates uncertainty, and these tariffs are creating a lot of it. But one thing is for sure: the auto industry is in for a bumpy ride.

Stay tuned, folks. This is just the beginning. The tariffs are set to take effect this week, and the industry is bracing for impact. Will GM and Ford weather the storm, or will they be left in the dust? Only time will tell. But one thing is for sure: the auto industry is in for a wild ride. So, buckle up and get ready for the ride of your life!