Ferrari’s earnings climbed in the second quarter as robust demand for its SF90 XX and 12Cilindri models and customized supercars helped offset additional tariff expenses https://t.co/P112pt7Gru ...

Group 1: Tariff Impact on the Automotive Industry - President Trump announced a 25% tariff on imported cars starting April 2025 and on auto parts starting May 2025, affecting 8 million imported vehicles annually, which constitutes 50% of total new car sales in the U.S. [2] - The automotive supply chain in the U.S. is highly globalized, leading to increased costs for car manufacturers due to tariffs, prompting many companies to raise vehicle prices [2][10]. - Analysts predict that the new car prices could increase by 10% to 15% for vehicles directly affected by the tariffs, while those not fully impacted may see a 5% increase [10]. Group 2: Price Adjustments by Automakers - Subaru announced price increases on several models, with adjustments ranging from $750 to $2055, effective June, citing the need to offset rising costs [3]. - Ford plans to raise prices on three models produced in Mexico, with increases up to $2000, and previously warned of a potential $1.5 billion loss due to tariffs [4][6]. - Ferrari responded quickly to the tariff announcement by increasing prices on certain models by up to 10%, with significant price hikes on high-end models [5][6]. Group 3: Company Strategies and Market Reactions - Some automakers, like Hyundai and Volkswagen, are currently holding off on price increases, with Volkswagen maintaining existing prices until June to avoid consumer burden [7][8]. - Toyota and Honda have chosen to absorb the increased costs temporarily, focusing on cost-cutting and efficiency improvements instead of immediate price hikes [8][9]. - Despite some companies holding off on price increases, the consensus is that price hikes are inevitable as the tariffs remain in effect [9]. Group 4: Market Trends and Consumer Behavior - U.S. light vehicle sales dropped by 10% year-over-year in May, attributed to consumers purchasing vehicles in advance of the tariff implementation [9]. - The ongoing tariff situation is expected to shift consumer preferences towards used cars, potentially driving up their prices as new car prices rise [10].