Automotive

20 company reactions — good and bad — to Trump’s tariff war

As the U.S. tariff war escalates under the Trump administration, companies across industries are scrambling to adapt, with some seeing opportunity and others bracing for impact.

From automakers pausing production to tech giants reshuffling supply chains, the ripple effects of new trade policies are reshaping business strategies, investor expectations and global relationships. 

Here’s a sector-by-sector breakdown of how major players are reacting to the mounting pressure of tariffs and retaliatory...

https://www.freightwaves.com/news/20-company-reactions-good-and-bad-to-trumps-tariff-war

Trump plans to ease tariffs on US auto imports

President Donald Trump will sign an executive order Tuesday aiming to reduce the impact of auto tariffs on U.S. automakers, White House officials said.

The Wall Street Journal reported Monday that the White House is set to announce a new tariff structure for cars that avoids “stacking” tariffs on top of other import taxes already in place, such as additional 25% duties on foreign steel and aluminum.

Autos and parts subject to the 25% Section 232 autos tariffs would no longer be subject to other...

https://www.freightwaves.com/news/trump-plans-to-ease-tariffs-on-us-auto-imports

Automaker to temporarily lay off 900 US workers due to tariffs

Stellantis said on Thursday it will pause production at assembly plants in Canada and Mexico and temporarily lay off about 900 employees at auto factories in Michigan and Indiana. 

The announcement comes just hours after President Donald Trump’s reciprocal tariff plan went into effect at midnight, including 25% import duties on foreign-made cars.

The pause begins Monday at Stellantis assembly plants in Windsor, Ontario, and Toluca, Mexico. 

Lou Ann Gosselin, Stellantis’ spokeswoman for Canada,...

https://www.freightwaves.com/news/automaker-to-temporarily-lay-off-900-us-workers-due-to-tariffs

Tariffs could reshape North American supply chains for autos, lumber, agrifoods

Automotive companies on both sides of the U.S.-Mexico border could feel the most pain if President-elect Donald Trump moves forward with his proposed 25% tariffs on all imports from Canada and Mexico once he takes office Jan. 20.

A 25% tariff imposed on parts and vehicles coming from Canada and Mexico to the U.S. would “break the entire system” of the North American automotive supply chain, said John Lash, group vice president of product strategy at e2open.

Austin, Texas-based e2open is a...

https://www.freightwaves.com/news/tariffs-could-reshape-north-american-supply-chains-for-autos-lumber-agrifoods

Mexico’s automotive industry exports 289,309 vehicles in November

Mexican authorities said they are on track to produce and export a record number of passenger vehicles and pickup trucks in 2024.

From January through November, auto factories in Mexico produced 3.7 million units, a 5.6% year-over-year increase, according to data released Friday from the National Institute of Statistics and Geography (INEGI).

Pickup trucks accounted for 76% of total vehicles produced at Mexican auto factories during the first 11 months of the year, INEGI said.

Vehicles exported...

https://www.freightwaves.com/news/mexicos-automotive-industry-exports-289309-vehicles-in-november

Mexico Borderlands: Volkswagen autoworkers fired for union activities, say US officials

U.S. trade authorities have filed a labor complaint with Mexico over allegations that a Volkswagen assembly plant in Puebla, Mexico, unfairly fired union activists.

The complaint filed by the U.S. Trade Representative’s office Tuesday follows an April 25 petition filed by 10 fired workers who allege Volkswagen Mexico violated the workers’ freedom of association and collective bargaining rights at the plant, the country’s largest and longest-operating auto factory.

“Retaliating against workers for...

https://www.freightwaves.com/news/volkswagen-mexico-autoworkers-fired-for-union-activities-say-us-officials

“Where’s my part?” — OEMs challenged by global supply chain disruptions

The global automotive industry is widely known to practice just-in-time (JIT) production, a lean manufacturing process in which time, labor and materials are optimized by only sourcing parts as they are needed.

JIT manufacturing has traditionally helped the automotive industry keep production costs down, but officials at TrueCommerce said the process hasn’t been upgraded or improved in decades.

Pittsburgh-based TrueCommerce is a global provider of supply chain and trading partner connectivity,...

https://www.freightwaves.com/news/wheres-my-part-oems-challenged-by-global-supply-chain-disruptions

Auto freight rolling strong as economy hits the brakes

Chart of the Week: Motor Vehicles and Parts Carloads – USA, Outbound Tender Volume Index – Detroit SONAR: RTOMV.USA, OTVI.DTW

Freight volumes of automotive parts are still recovering as demand for many durable goods wanes. Is it sustainable?

Rail carloads for motor vehicles and parts averaged 11% higher year over year in October as part of a recovery trend that started earlier in the year. The Detroit Outbound Tender Volume Index (OTVI) shows a historical elevation in activity since this spring....

https://www.freightwaves.com/news/auto-freight-rolling-strong-as-economy-hits-the-breaks

Automotive supply chain in for slow normalization in 2022

Waze FreightTech25

Car shoppers have had a tough time over the past couple years. The coronavirus pandemic increased the demand for both new and used cars, while simultaneously fueling equipment shortages throughout the automotive supply chain. These headwinds combined to create an environment characterized by surging demand, suppressed inventory and sky-high prices. 

Huge reductions in inventory and serious spikes in used car prices continued to plague consumers heading into 2022. In fact, used car prices are...

https://www.freightwaves.com/news/automotive-supply-chain-in-for-slow-normalization-in-2022

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