You don’t produce enough of those metals currently to sustain the desired level of car production. Margins on cars are already thin (~5% for manufacturers, 1-2% for dealers), I don’t expect non-American companies to start selling cars at a loss. Maybe it’s a plot to force public transportation, who knows.
Good to know you’d be okay with 30% inflation this time around.
They won't and that's why they are pledging investment within the US, you know the intended primary purpose of the tariffs from the getgo?
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Hyundai: In March 2025, Hyundai announced a $20 billion investment in the U.S., including $5.8 billion for a new steel plant in Louisiana. This facility is expected to produce over 2.7 million metric tons of steel annually and create more than 1,400 jobs, supplying steel to auto plants in Alabama and Georgia. This move builds on earlier pledges to localize production and aligns with efforts to avoid import tariffs.
Stellantis: The company committed $5 billion to its U.S. manufacturing network, including reopening a plant in Illinois. This investment aims to increase domestic vehicle production, reflecting a strategic shift to bolster U.S.-based operations.
Volkswagen: Volkswagen is considering shifting production of its high-end Audi and Porsche brands to the U.S. While not yet finalized, this potential investment is part of a broader trend among foreign automakers responding to U.S. trade policies.
Honda: Honda has been reported as planning to build plants in the U.S. to manufacture models like the Accord and Civic. Though specific figures are less detailed, this aligns with sentiment from industry observers noting a shift of production from Mexico to the U.S.
Nissan: Nissan is among the automakers reportedly planning new U.S. ventures, though exact investment amounts remain unspecified in recent announcements. Its focus includes models like the Sentra, Versa, and Kicks, traditionally produced in Mexico for the U.S. market.
Rolls-Royce: The luxury brand, owned by BMW, is adding manufacturing capacity in the U.S., though specifics on scale are limited. This move complements its parent company’s broader strategy.
Volvo: Owned by China’s Geely, Volvo is strongly considering expanding U.S. production, potentially to mitigate tariff impacts, though no firm dollar amount has been publicly confirmed as of now.
Subaru and Isuzu: These manufacturers have also been mentioned in discussions on X and other platforms as planning U.S. plants, but concrete details on investment size or timelines are scarce in available data.
Tesla: Elon Musk has pledged to double Tesla’s U.S. car production, though this lacks a specific dollar figure or timeline in recent reports. This aligns with Tesla’s ongoing expansion, including plans for a delayed Mexico plant now eyed for 2025 or 2026.