Key Takeaways
- General Motors and Ford reported first-quarter sales Tuesday as the auto industry braces for the impact of the Trump administration’s planned tariffs.
- Ford’s total vehicle sales declined 1.3% year-over-year, while GM said it had its best Q1 sales since 2018.
- The Trump administration is expected to implement its 25% tariff on foreign cars and parts, and introduce new tariffs Wednesday.
Automakers General Motors (GM) and Ford Motor (F) reported first-quarter sales Tuesday as the auto industry braces for the impact of the Trump administration’s planned tariffs.
Ford’s total vehicle sales declined 1.3% year-over-year to 501,291 vehicles in the quarter. Retail sales rose 5%, propelled by a 19% surge in March, an indication that consumers could be moving to buy new cars ahead of the tariffs.
GM delivered 693,353 vehicles in the quarter, a 17% jump and its best opening three months since 2018. It posted double-digit growth across all of its brands.
Ford shares were down 2% in recent trading, while GM shares were little changed.
Auto Industry Braces for Tariffs Impact
The quarterly sales figures come as the auto industry braces for the impact of President Donald Trump’s 25% tariffs on foreign cars and parts, with experts having said car prices could rise by thousands of dollars. Although GM and Ford produce most of their cars in the U.S., many parts used to build them are imported.
In recent notes to staff, GM and Ford executives said they are still working to understand where tariffs would most affect their businesses, the Detroit Free Press reported. In an annual letter to shareholders, Ford Chair William Clay Ford Jr. said that the company is “well-positioned” to weather “geopolitical uncertainties.”
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