The CEO of the AutoNation dealership chain, at a celebration for the Ford Expedition SUV, stated that automakers will raise selling prices as a last resort. During the event, Jim Farley, CEO of Ford, committed to maintaining prices unless their competitors increase them.
"They have to watch what our competitors do," mentioned Farley, highlighting the importance of keeping prices in line with the market. Both companies extended promotions last week, offering employee discounts, which has boosted sales, including a 16% increase for Ford last month.
The automotive research firm JD Power estimates that tariffs will reduce automobile sales in the U.S. by approximately 1.1 million units annually, or around 8%. To avoid an acceleration of future hardship, some manufacturers are reducing incentives to preserve inventory.
As for consumers, they fear price increases due to tariffs, which could affect their ability to acquire vehicles. Some dealerships are quickly depleting their inventory of tariff-free vehicles, which could result in a slowdown in sales in the near future.
Analysts predict that the increase in automobile sales will slow down in the second half of the year and that prices will rise due to tariffs, which could impact the number of vehicles sold. In light of this situation, manufacturers and dealerships are preparing to adjust to market changes and maintain competitiveness.
The uncertainty about the future of automobile prices and sales generates concern in the industry, as the tariffs imposed by Trump could have a significant impact on the sector. As automakers face challenges, consumers are also affected by the potential for price increases and the reduction of offers and discounts.
