Auto tariffs have made 2025 an unusual year for U.S. auto giants. Take Ford  (F) , for instance. The Blue Oval leaned heavily into promotions to drive sales as consumers, concerned about the effect the 25% tariffs would have on prices, flocked to dealerships to purchase their vehicles before prices increased. Ford says its total sales rose in the second quarter at a rate about 7 times that of the overall industry. The company says it was the top-selling brand in the U.S. during the first half of the year ...

Group 1: Market Overview - The current market turnover and retail participation are at all-time highs, indicating a lack of patience among investors [2] - Investors are encouraged to adopt a long-term perspective to navigate the current market volatility [1] Group 2: Automotive Sector Insights - President Trump has lowered auto tariffs between the United States and the European Union, which could positively impact certain automotive stocks [3] - Stellantis, Ford, and Advance Auto Parts are identified as potential beneficiaries of the tariff changes [3] Group 3: Stellantis Analysis - Stellantis stock is currently viewed as a Hold by analysts, with a consensus price target of $12.74, despite a recent bearish outlook [4] - Institutional buyers, such as Amundi, increased their Stellantis holdings by 41%, indicating confidence in the company's future earnings potential due to lower tariffs [6] Group 4: Ford Motor Company Strategy - Ford is modernizing its assembly process to reduce vehicle costs and qualify for tax credits, which is crucial in a high-tariff environment [9] - Analysts currently have a Reduce rating on Ford, predicting a 10.6% downside, but institutional investment from Marshall Wace LLP suggests a positive outlook [10][11] Group 5: Advance Auto Parts Performance - Advance Auto Parts stock has increased by 24.7% over the past quarter, reflecting market sentiment favoring companies that benefit from higher vehicle prices due to tariffs [13] - Institutional investment from State Street, which built a $111.9 million stake, indicates a shift in sentiment towards Advance Auto Parts [15]

Mercedes CTO Markus Schäfer urged the US and EU to quickly follow through on a trade deal to lower auto tariffs, saying manufacturers are being squeezed by ongoing duties https://t.co/KO0wwSZpOh ...

Core Insights - Used car prices are experiencing significant increases, with the Manheim Index rising 1.6% in June and a 6.3% year-over-year surge, the highest since August 2022 [1] - The increase in used car prices is attributed to Trump-era auto tariffs and a tightening supply of new vehicles, creating a demand for pre-owned cars [2][5] Market Dynamics - The uncertainty caused by proposed 25% tariffs on imported vehicles has led automakers to reduce production plans, resulting in a scarcity of new vehicles and increased demand for used cars [2] - Used vehicle inventory has dropped to a 43-day supply, significantly below normal levels, giving dealers increased pricing power and higher per-unit profits [3] Company Performance - Carvana and AutoNation are well-positioned to capitalize on the current market conditions due to their investments in online platforms and omnichannel sales strategies [4] - Carvana shares have increased over 74% year-to-date, while AutoNation has seen a nearly 26% rally, indicating strong investor interest and favorable margins [5] Investment Opportunities - The current pricing environment and expanding margins suggest that dealership stocks like Carvana and AutoNation may continue to perform well, providing a resilient investment opportunity amid tariff-related uncertainties in the new car market [5]

Core Insights - Ford Motor Company anticipates a net adverse adjusted EBIT impact of approximately $1.5 billion for 2025 due to tariff pressures and has withdrawn its guidance amid industry instability [1][7] - Ford's competitive advantage includes producing 300,000 more vehicles in the U.S. than its competitors, with 80% of its parts compliant with USMCA trade rules [2][7] - The company has implemented strategies to mitigate tariff impacts, such as shipping vehicles from Mexico to Canada using bonded carriers to avoid U.S. tariffs [3][7] Peer Comparison - General Motors has predicted profit declines this financial year, with an estimated exposure of $4 million to $5 million due to auto tariffs, but expects to mitigate 30% of cost increases through tailored initiatives [4] - Stellantis has suspended its guidance for fiscal 2026 amid tariff challenges and is reassessing its capital spending strategies while reducing vehicle imports in response to tariffs [5] Financial Metrics - Ford's shares have decreased by approximately 5.1% over the past year, contrasting with the industry's growth of 20.8% [6] - The company trades at a forward price-to-sales ratio of 0.26, which is below the industry average, and carries a Value Score of A [8] Earnings Estimates - Recent revisions of Ford's EPS estimates show slight fluctuations, with current estimates for the current quarter at $0.30 and for the next year at $1.26 [10]

Core Insights - Ford Motor reported a 16.3% year-over-year increase in U.S. sales for May 2025, driven by an employee pricing program amidst rising tariff costs and vehicle price increases [1][2] Sales Performance - Sales of vehicles with traditional internal combustion engines increased by 17.2%, while hybrid models saw a roughly 29% jump [2] - There was a 25% decline in sales of all-electric vehicles, particularly the electric F-150, compared to May 2024 [2] - May marked the third consecutive year of double-digit sales increases for Ford, supported by the employee pricing program continuing through the Fourth of July weekend [2] Pricing Strategy - The pricing promotion was initiated as President Trump's 25% auto tariffs on imported vehicles took effect in early April [3] - Ford announced price increases on certain vehicles imported from Mexico, effective for those built after May 2, attributed to seasonal adjustments and tariff impacts [3]

Group 1 - Rivian built up a stockpile of batteries for its trucks, SUVs, and commercial vans to mitigate the impact of tariffs imposed by the Trump administration [1] - The company purchased an undisclosed number of lithium iron phosphate batteries from Chinese firm Gotion for its delivery vans, primarily made for Amazon [2] - After the election, Rivian collaborated with Samsung SDI to transfer a significant amount of battery inventory from South Korea to the U.S. [2] Group 2 - The stockpiles are expected to alleviate pricing pressure resulting from Trump's auto tariffs, which affect components imported into the U.S. for vehicle production [3] - Trump's recent tariff adjustments provide some relief compared to the initial 25% tax on imported parts, although price increases on new cars are still anticipated [3]

Core Viewpoint - General Motors (GM) has announced a significant recall of approximately 877,000 full-size trucks and SUVs due to potential internal defects in the 6.2-liter V-8 engine, which could lead to serious engine damage or failure [1][4][6]. Group 1: Recall Details - The recall affects a range of high-demand models from the 2021 through 2024 model years, including the Cadillac Escalade, Chevrolet Silverado 1500, Suburban, Tahoe, and GMC Sierra 1500, Yukon, and Yukon XL [5][6][12]. - The issue is attributed to internal manufacturing defects involving key engine components such as the crankshaft and connecting rods, which may have been damaged during production [6][8]. - GM has mandated inspections for all recalled vehicles, with engines passing inspection receiving an oil filter and oil cap replacement, along with a switch to higher-viscosity 0W-40 motor oil [8][9]. Group 2: Financial Impact - GM's stock fell by nearly 2% following the recall announcement and the company's decision to pull its earnings guidance for 2025, alongside freezing $4 billion in share buybacks due to uncertainties related to tariffs [1][5]. - In the most recent quarter, GM reported an EBITDA of $3.49 billion, surpassing analyst estimates of $3.45 billion but lower than the $3.87 billion reported in the same period the previous year [4]. Group 3: Regulatory and Customer Communication - The recall follows an investigation by the National Highway Traffic Safety Administration (NHTSA), which received at least 39 complaints related to engine failures in GM vehicles with the 6.2-liter V-8 engine [12][13]. - GM will notify owners of the recalled vehicles in the coming weeks with instructions on how to proceed [14].

Group 1 - Ford Motor may raise prices on new vehicles if President Trump's auto tariffs continue, as indicated in a memo sent to dealers [1] - The automaker has initiated deep discounts across its lineup, which will continue until June 2, but pricing on new models produced in May and beyond may change [1][4] - Ford's executive noted that if tariffs remain unchanged, vehicle pricing adjustments are anticipated, particularly for May production [5] Group 2 - Ford will not increase the sticker price on any vehicle currently in inventory at Ford and Lincoln dealers [6] - An analysis revealed that Trump's 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025 [6] - Ford is well-positioned to handle tariffs, producing about 80% of its U.S.-sold vehicles domestically [6][8] Group 3 - The tariff situation is dynamic, and Ford is continuously evaluating the potential impact of tariff actions [2] - Both U.S. and foreign automakers are offering price assurances and substantial discounts to alleviate consumer concerns about tariffs inflating costs [4] - Earlier discussions suggested that Trump might consider modifications to the auto-related tariffs, including potential exemptions [7]

Core Viewpoint - Honda Motor Co., Ltd. has denied reports about relocating vehicle production from Canada and Mexico to the United States in response to potential tariffs, asserting that no changes are currently being considered for its Mexican operations [1][2]. Group 1: Production Strategy - Honda aims to manufacture 90% of vehicles sold in the United States domestically and plans to increase its U.S. production capacity by nearly 30% over the next two to three years [2]. - Honda Canada stated that while it regularly assesses future production strategies, it remains confident in managing market challenges without any immediate changes [3]. Group 2: Market Performance - The United States is Honda's most critical market, with approximately 1.4 million vehicles sold in 2024, accounting for nearly 40% of its global sales, and about 40% of those vehicles are imported from Canada and Mexico [4]. - In the first quarter of the current year, Honda's U.S. sales increased by 5% to nearly 352,000 units [4]. Group 3: Industry Context - Nissan Motor Co., Ltd. plans to reduce Japanese production of its top-selling U.S. model, the Rogue SUV, while reviewing its manufacturing strategies to enhance efficiency [5]. - Recent comments from President Trump indicated a potential delay in new auto tariffs, allowing automakers more time to adapt, with General Motors and Nissan announcing plans to increase U.S. production [6]. - Nissan has decided to maintain two shifts at its Smyrna, TN, plant to strengthen its U.S. manufacturing presence amid rising tariffs on imported vehicles [7]. - Hyundai has opened a new electric vehicle plant in Ellabell, GA, with plans to produce 500,000 EVs annually and invest $21 billion in U.S. operations by 2028 [8].