First Quarter Sales Figures of US Automakers Amidst Trump’s Tariffs
The first quarter of 2019 witnessed a significant event in the US automobile industry. Just before the implementation of President Donald Trump’s auto tariffs on “Liberation Day,” Ford and General Motors reported their sales figures. Al Root, an associate editor at Barron’s, recently sat down with Josh Lipton to dissect these numbers and discuss the potential implications of the tariffs.
Ford’s Sales Performance
Ford’s first quarter sales showed a slight decrease of 1.1% compared to the same period last year. The F-Series pickup trucks continued to lead the sales chart with 71,293 units sold. The Mustang also experienced a growth of 10.6% with 18,624 units sold. However, SUVs and crossovers suffered a decline, with the Escape, Explorer, and Expedition witnessing a decrease of 12.7%, 11.2%, and 11.3% respectively.
General Motors’ Sales Figures
General Motors reported a sales decline of 4.3% in the first quarter of 2019. The Silverado pickup trucks remained the top-selling vehicle with 148,154 units sold. The Chevrolet Equinox and Traverse SUVs also performed well with sales growth of 11.5% and 10.4% respectively. However, the Cruze compact car and Impala midsize car experienced a significant decline of 27.7% and 34.2% respectively.
Impact of Trump’s Tariffs on Consumers
The implementation of Trump’s tariffs on imported cars and parts could lead to increased prices for consumers. According to a study by the Center for Automotive Research, the tariffs could result in an average price increase of $4,400 per vehicle. This would significantly impact the affordability of new cars for consumers.
- Higher prices for new cars
- Possible job losses in the automobile industry
- Decreased competition and innovation
Impact of Trump’s Tariffs on the World
The tariffs could potentially trigger a global trade war, with other countries retaliating with their own tariffs on US goods. This could negatively impact the US economy and international relations. Moreover, the tariffs could disrupt the global supply chain, leading to shortages and delays in the production of cars.
- Potential global trade war
- Disrupted global supply chain
- Negative impact on international relations
Conclusion
The implementation of Trump’s auto tariffs on “Liberation Day” coincided with the release of first quarter sales figures by Ford and General Motors. The sales figures revealed mixed results, with some vehicles performing well and others experiencing declines. The tariffs could lead to increased prices for consumers, potential job losses, and a disrupted global supply chain. The impact on the world could include a global trade war, negative impact on international relations, and potential shortages and delays in the production of cars.
As consumers, it is essential to stay informed about the potential impact of these tariffs on the automobile industry and our wallets. Let us hope for a positive resolution to this situation that benefits all parties involved.
