How Trump Tariffs Might Affect Loans, Leases from Auto Dealerships
President Donald Trump’s plan for significant tariffs on vehicles produced in Canada and Mexico would probably “be a mixed bag” for the auto loans and leases tied to a significant proportion of dealership profits, according to an Edmunds expert. Trump’s 25 percent tariff on goods from Canada and Mexico took effect March 4, though the next day the White House announced the tariffs would be delayed until April 2 for vehicles imported under the United States-Mexico-Canada Agreement, reports Automotive News.“For models unaffected by tariffs, we could see fewer incentivized [annual percentage rate] offers as automakers may not need to be as aggressive on pricing to stay competitive,” Ivan Drury, Edmunds director of insights, said in a statement March 4. “However, for vehicles facing price increases anywhere in the thousands or tens of thousands due to tariffs, automakers might turn to low APR financing or other incentives to help offset affordability concerns and keep sales moving.”Drury said current lessees may opt to extend their lease or buy out their vehicle rather than enter a more expensive new lease. Click here for the full story.
Automakers Brace for Uncertain Future Amid Trump’s Tariff Pause
President Donald Trump’s decision to grant a one-month exemption from steep auto tariffs offers temporary relief for U.S. automakers — but industry experts warn it’s far from a solution to the long-term disruption the trade war could cause. The 25 percent tariffs on vehicles and auto parts imported from Mexico and Canada were set to take effect immediately, but after conversations with Ford, General Motors, and Stellantis leaders, Trump announced a brief pause. While the exemption might seem like a lifeline, analysts caution that automakers need far more time to adjust their supply chains — if they can adjust at all, reports Autoblog. Modern automakers rely on sprawling global supply networks, sourcing thousands of parts from various countries. Reconfiguring those systems to comply with new trade restrictions is a massive undertaking that can’t happen overnight. Even for companies that have streamlined operations in recent years, the complexity of production lines makes rapid shifts nearly impossible. Automakers “will be hit differently based on exactly where their supply chain is,” said John Paul MacDuffie, professor of management at the University of Pennsylvania. Click here for the full story.
Porsche Grows Standalone U.S. Dealership Count with Destination Center Design
Porsche is growing its number of exclusive dealerships in the U.S. The luxury automaker last year added 16 standalone stores in 2024, for a total of 153, according to Automotive News’ annual dealer census. That’s 76 percent of its total 202 franchises as of Jan. 1. Porsche added four franchises in 2024. At the beginning of 2020, Porsche had 121 exclusive U.S. dealerships, according to the Automotive News Research & Data Center. Porsche Cars North America said “for years” it has had a policy requiring dealers whose stores reach a certain sales volume to have an exclusive dealership. The brand would not disclose specifics. “As PCNA has been growing in volume year after year, the growth has caused some stores to fall into a category where an exclusive store is necessary when it becomes time for updating,” Corbett Head, director of retail development at Porsche Cars North America, said in a statement. “It’s also occurred more last year simply because there were several facility constructions and renovations after a pause during the COVID-19 pandemic.” Click here for the full story.
Volvo Is Probably Done Making Wagons
The headline-grabbing 2026 Volvo ES90 could very well be the genre-neutral future of the brand. As the Swedish automaker transitions into an electric vehicles-only lineup, the CEO says there will be no room or reason for tradition (i.e., wagons), reports The Drive. “It’s expensive to bring different models to the market, it’s expensive to keep those models in the market, and it’s expensive to launch them from a marketing point of view,” said Volvo Cars CEO Jim Rowan in an interview with Autocar. Wait a minute. What was all that Volvo wagons 4EVA talk in 2022? Well, looking back with a new contacts prescription, former CEO Håkan Samuelsson wasn’t actually saying that wagons were staying. He was, in fact, telling us they were done. There is a need for lower ride height vehicles in a conventional size (e.g., not a crossover/SUV), but less square, said Samuelsson. Specifically, that S (sedan) and V (versatility) model lines would “be replaced with something even more attractive to consumers.” The iconic boxy Volvo would be relegated to history books and replaced with a Volvo design language that is more aerodynamic and “coupé-ish.” Sounds a lot like the ES90, eh? Click here for the full story.
NADA Requests VW to Reevaluate Scout’s Direct-to-Consumer Sales Strategy
The National Automobile Dealers Association (NADA) recently sent a letter to Volkswagen Group CEO Oliver Blume and other executive board members. In the letter, Stanton urges them to reconsider Scout Motors’ decision to sell vehicles directly to consumers, bypassing the traditional dealership model. Dated March 6 and obtained by CBT News, the letter raises concerns about the potential impact on Volkswagen’s U.S. dealership network and the legal challenges that may arise. In the letter, NADA’s CEO, Mike Stanton, expressed that the decision by Blume and the Board of Management to distribute Scout vehicles directly in the U.S. was “misguided” and “violates well-established state franchise laws.” He also pointed out that Scout would have instant market traction if it utilized the dealership franchise system. Stanton warned that the alternative would be strained relationships with U.S. dealers and prolonged legal disputes across individual states. Stanton also addressed the letter to several key leaders of the VW Group, including Kjell Gruner, CEO of VW Group of America, and Scott Keogh, CEO of Scout. Click here for the full story.
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