How Global Carmakers Are Responding To Tariffs: Full Summary

With auto tariffs becoming the new normal in the US, investors have begun to track responses by OEMs every week both in terms of pricing/incentives and production. Needless to say, this is a fluid situation and policy could change quickly.

To be sure, there is the occasional automaker - like Ferrari - which doesn't even have to worry about the impact of tariffs and can boast of zero cancelations even as the average Ferrari price rises by 25%. After all, its clients are uniformly wealthy and most would be glad to pay even more for a car; after all, it is a status symbol. Other OEMs, however, are less lucky and since the battle for market share and against margin erosion is about to get fierce, here is the latest state of the OEM industry.

As DB's Edison Yu writes in a note this week, lately the administration appears to be content to extend the USMCA-compliant auto parts exemption and will also grant credits back to OEMs for domestically-made vehicles in the first and second years. Across OEMs, we are monitoring post-tariff reactions, with GM saying that it will not raise prices across the board but continue to see consistent pricing (up 0.5%-1.0% for the year), and Ford holding off on price increases for its May-built vehicles. Others like Hyundai have launched a "Customer Assurance" program to shield buyers from tariff-related price hikes until June. 

Below follows a summary of all the key actions OEMs have taken so far in response to tariffs:

Ford: Offering employee pricing discounts on many Ford and Lincoln vehicles to all buyers through June 2

• Not included in the program are the 2025 Expedition, Super Duty trucks, and all Raptor family; as is the Bronco Stroppe and specialty Mustang trims. Meanwhile, all Lincoln models are eligible except the Navigator.
• Many commercial fleet models such as the F-450, F-550, F-650 and F-750 chassis cabs are also not eligible.
• Ford said it's able to offer this program because it still has plenty of dealer inventory.
• Signaled possible price hikes on newly built vehicles in May; halted shipments to China from US.
• Ford production is down significantly at the Flat Rock and Michigan Assembly plants, according to the UAW.
• Ford said it now has decided against raising prices on vehicles rolling off the assembly line in May

GM: Shifting some production of light duty trucks to Fort Wayne

• GM's decision to increase production at Ford Wayne facility will result in 225-250 new jobs.
• To support the increase, GM will hire temp workers and schedule additional overtime.
• Facility will temporary shut down from 4/22 immediately following Easter weekend to speed up assembly line to 9-10 vehicles per hour.
• Paused production of electric commercial van at CAMI Assembly plant and will return to production in the fall with half the capacity; but the OEM said this is more related to lackluster demand for BrightDrop vehicles.
• Supplier dispute over tariff costs between Primax and Nexteer could impact production.
• Plan to increase production of transmissions at Ohio facility in order to support light trucks made in Fort Wayne.
• Cut a shift (out of three) at Oshawa truck plant in response to tariffs, impacting roughly 700 jobs

Stellantis: Offering employee discounts to all US customers on most vehicles

• Consumers will be able to purchase models like the Jeep Wrangler and Ram 1500 pickup at substantial discounts.
• Announced temporary layoff (900 workers) at five US facilities and pause production at one assembly plant each in Mexico and Canada.
• Windsor Assembly, where the Chrysler Pacifica/Voyager and Dodge Charger Daytona are made, will be down for two weeks while the Toluca Assembly in Mexico, where the Jeep Compass and Jeep Wagoneer S are made, will be down for the month of April.
• Will offer to help suppliers pay extra tariff costs, though the exact % is unclear.
• Provide incentives for dealer employees to consider purchasing a Jeep Wagoneer S and Dodge Charger BEV.
• Warren Truck Assembly plant has seen declining activities.

Honda: Limited response post tariffs, but had scrapped plans to produce new Civic in Mexico in favor of Indiana

• Honda had initially planned to manufacture the next-gen Civic in Guanajuato, Mexico, starting in November 2027.
• Now plans to shift production to Indiana starting June or July 2028.
• This plant is expected to produce 200k units annually.

Hyundai: Management said publicly that it will not raise consumer prices while assessing the tariff situation 

• Will not increase prices at least for the next two months until June 2.
• Previously warned dealers it would evaluate its pricing strategy in the face of forthcoming 25% tariffs on imported vehicles and parts. 
• Has launched its "Customer Assurance" program to shield buyers from tariff-related price hikes until June.

Mazda: Mazda confirmed it will absorb price increases through April

• Incentives changes are next based on market conditions starting mid-April.
• This also implies potential MSRP changes starting May 1st.
• Pause US production of CX-50 destined for Canada, effective May 12.
• Will absorb price increases through April despite eyeing about $175m in tariff costs in that month

Mitsubishi: Mitsubishi has stopped shipping additional inventory to its 330 US dealerships

• Holding vehicles at port before the point in the import process when tariffs are imposed, until additional visibility on tariffs; lowered incentives on 2025 Outlander.
• Sufficient stock on the ground at dealers for the moment to not impact customer choice (100 days of tariff-free inventory).

Nissan: Infiniti brand has indefinitely paused production of two Mexico-built crossovers

• Specifically, the QS50 and QX55 output is halted until further notice.
• Management reviewing production and supply chain operations to identify optimal solutions.
• Confirmed will maintain two shifts of production of the Nissan Rogue crossover at its Smyrna, Tennessee plant, reversing previous decision to scale down to one shift.
• Slashing MSRP for two popular models - 2025 Rogue and Pathfinder.
• Increase Rogue CUV production in Tennesee by 54% (or 60k vehicles) over the next 12 months.
• Retiring several dealer incentive programs and rolling out a new structure

Porsche: Held inventory at port in hope of better US-EU tariff negotation

• Porsche dealers indicated a pause on shipment from US ports for several weeks; spokesperson said on 4/28 that vehicles are being released from port.

Subaru: Expressed intent to protect stability in the months ahead

• Targeting sales of 56k units in April; will assess long-term strategy.

Toyota: Expressed intention to keep running operations and does not intend to raise vehicle prices

• Furthermore, the company's NA subsidiary said it plans to help local parts maker with rising costs associated with tariffs.
• Considering producing the next gen top-selling RAV4 in Kentucky.

BMW: Absorbing cost of added tariffs util May 1st

• BMW is not compliant with USMCA and thus not eligible with the tariff timeline extension granted to others.
• The automaker is absorbing the costs of added auto tariffs, but only until May 1st.
• It has said tariffs will bring about lbn Euro in additional costs this year.

Mercedes-Benz: April prices will remain unchanged as the company evaluates long-term impacts

• The company said if the tariffs persist, vehicle and parts costs are expected to increase.
• However, in the meantime for April, prices for vehicles and parts will remain unchanged.
• Mercedes to add ‘core’ new vehicle to Alabama plant, targeting 2027 and tailored to US customer preference

VW: Pause rail shipments from Mexico and plans to introduce an "import fee" on vehicles affected by the tariffs

• Will share pricing guideline by trim by mid-April and consumers will see an "import fee" line item for vehicles built outside of the US.
• The company is also pulling back on “Deal Days” promotions and reallocating its ad spending elsewhere.
• Holding off on price increases until end of May.

Volvo Cars (Geely): Plans to increase production at South Carolina factory

• Dealers said no change to MSRP thus far for all passenger car inventory.

Volvo Trucks: Volvo truck to conduct layoffs

• Volvo Truck said to lay off 550-800 people at its Mack Trucks site in Macungie, Pennsylvania, and two other facilities in Dublin, Virginia, and Hagerstown, Maryland.

Rivian: Limited response post tariffs

• Announced $120m investment for supplier park near its plant in lllnois, likely aiming to reduce shipping, logistics and warehousing costs, while adding hundreds of jobs in the next two years

Tesla: Limited response post tariffs, but CEO warned that cost impact will not be trivial

• Elon voiced that he would like to see free trade between the US and Europe.
• Halted sales of US-made Model S and X in China.
• Reportedly suspending imports of Cybercab and Semi parts from China.
• Increased prices across its lineup in Canada; Model 3 and Y saw an increase of CAD $llk-15k per vehicle.

More in the full note available to pro subs.