Trump’s Tariffs Threaten Job Losses, Experts Say. These May Be The Hardest Hit
Autoworkers, farmers and alcohol distillers are among a set of U.S. workers who risk losing their jobs as a result of potential tariffs on Canada, China and Mexico, experts told ABC News. Trump announced on Monday that the proposed tariffs on most goods from Canada and all products from Mexico would be paused for one month, putting the policies on schedule to take effect in early March. U.S. automakers hold deep ties to Canada and Mexico, since products often snake back and forth between the countries before a car reaches full assembly, Christopher Conlon, a professor of economics at New York University who studies trade, told ABC News. Mexico and Canada make up the top two U.S. trading partners for both finished motor vehicles and car parts, according to a Cato Institute analysis of data from the U.S. International Trade Commission. The production slowdown may lead to job cuts at companies indirectly impacted by the tariffs, such as car dealerships and auto-part sellers, experts said. More than 550,000 workers at car dealerships representing international brands risk losing their jobs if the industry falters due to the tariffs, AIADA told ABC News in a statement. Click here for the full story.
Mazda Achieved Record Growth Last Year with Fewer Dealers
Increased throughput across Mazda’s dealer network helped the Japanese automaker achieve its highest sales in nearly four decades. “Mazda is focused on pushing more sales through the current dealerships rather than trying to add on more dealers for growth,” Rob Sickel, chairman of the Mazda National Dealer Advisory Council, told Automotive News after the automaker held a virtual franchise meeting on Jan. 30. Mazda has 545 dealers in its network. In 2024, they sold an average of 669 vehicles, up from 625 in 2023. Sickel said 21 Mazda dealers topped sales of 2,000 vehicles last year.Mazda’s overall U.S. sales rose 17 percent to 424,382 vehicles last year, outpacing the industry’s 2.5 percent increase. It was Mazda’s most robust volume since 1986 when the brand sold 379,843 vehicles. Mazda had more than 900 dealers at that time.“We still have a lot of work to do in 2025 and beyond,” Sickel said. “But things are heading in the right direction, and we have to keep them going.” Click here for the full story.
Nissan to Reject Honda Deal to Create World’s No. 3 Automaker
Nissan’s board has determined that Honda’s terms for a combination of the two automakers are unacceptable, people familiar with the matter said, endangering a merger plan designed to shore up Nissan’s faltering business. In a statement, Nissan said no decision had been reached but one option under discussion was scrapping its December agreement with Honda to aim for a merger, reports The Wall Street Journal. Both automakers said talks were continuing and they aimed to announce their direction in mid-February. The two Japanese automakers said on Dec. 23 that they planned to combine under a structure in which Honda and Nissan would both be subsidiaries of a single holding company. A combination of Honda and Nissan would create the world’s third-largest automaker by vehicle sales when including Mitsubishi Motors, whose biggest shareholder is Nissan. Together, Honda and Nissan sold more than 2.3 million vehicles in the U.S. last year, and both are in the top tier of auto brands in America. Click here for the full story.
Market Gets Bounce from Hybrids, Light Trucks to Start 2025; SAAR Slips Below 16 Million in January
Another strong month for retail volume, along with robust demand for hybrids and utility vehicles, gave a lift to U.S. sales to start the year. New car and light-truck sales rose 4.3 percent to 1.11 million in January, GlobalData said in a preliminary report, near the low end of the range of forecasts from J.D. Power-GlobalData, Cox Automotive and S&P Global Mobility.GlobalData said retail sales totaled 902,000, up 5.5 percent, and fleet shipments tallied 204,000, down 0.7 percent and accounting for 18.5 percent of industry deliveries in January, typically the weakest month for volume.According to Automotive News, the seasonally adjusted annual rate of sales tallied 15.8 million last month, Motor Intelligence said, also near the bottom of the range of forecasts ― 15.6 million to 16.2 million. The January SAAR fell from 17.1 million in December but rebounded sharply from 15 million in January 2024.The SAAR had topped 16 million every month since September.Results were mixed among automakers that report monthly sales. Click here for the full story.
Ferrari Defies Luxury Auto Slump with Strong U.S. Sales
Ferrari NV posted stronger-than-expected fourth-quarter results, bolstered by robust U.S. demand despite broader struggles in the luxury auto market. Sales climbed 14 percent year-over-year to $1.8 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 15 percent to roughly $666 million. Both figures exceeded analyst forecasts, reports CBT News. The strong performance sent Ferrari shares up as much as 6.2 percent in Milan on Tuesday, contributing to a nearly 25 percent gain over the past 12 months. The automaker has largely avoided the challenges facing the broader car industry, though potential U.S. tariffs under President Donald Trump could pose future headwinds. The U.S. remains Ferrari’s largest market, accounting for one in four vehicles sold. Ferrari’s 2024 shipments inched up 1 percent to 13,752 units, driven by demand for the Purosangue, Roma Spider, and 296 GTS. While sales in the Americas rose 8 percent in the fourth quarter, China saw a steep 38 percent decline, deepening its slowdown in the region. Click here for the full story.
ComplyAuto: Federal Court Vacates the CARS Rule: What Dealers Need to Know
The U.S. Court of Appeals for the Fifth Circuit has vacated the Federal Trade Commission’s “Combating Auto Retail Scams” Trade Regulation Rule (CARS Rule or Vehicle Shopping Rule), finding that the agency failed to follow its own procedural requirements during the rulemaking process. The decision, issued on January 27, 2025, stems from a challenge brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association, who successfully argued that the FTC was required to issue an advance notice of proposed rulemaking (ANPRM) before proceeding with the rule.
It’s important to note that while the CARS Rule aimed to codify existing UDAP (Unfair or Deceptive Acts or Practices) law and regulations governing dealer advertising and F&I compliance, the court’s decision to vacate the rule was purely procedural. The underlying rules and requirements currently in place remain unchanged. Click here to read the full article by ComplyAuto.
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