US automakers Ford Motor and General Motors (GM) have reported divergent sales figures for the first quarter of 2024, just a day ahead of the expected implementation of a 25 percent tariff imposed by the administration of President Donald Trump on foreign cars and parts.
The stock market is already bracing for the potential adverse impact of the tariff, which is expected to drive up car prices as many parts used by Ford and GM to produce cars in the US are sourced from overseas. Other major car suppliers in the US are Japanese and South Korean car makers.
GM reported strong first-quarter sales, moving 693,353 vehicles, a 17 percent increase compared to the same period last year. This marked the best first-quarter performance for GM since 2018, with all of its brands posting double-digit growth.
In contrast, Ford and Stellantis, the parent company of Chrysler, saw declines in their first-quarter sales. Ford’s sales dipped 1.3 percent due in part to the discontinuation of its Ford Edge SUV last year. Stellantis faced a 12 percent drop as the company continues its turnaround plan.
South Korean automakers Hyundai Motor and Kia Motors posted strong results, reporting double-digit sales growth of 10 percent and 11 percent, respectively, compared to the first quarter of 2024. Japanese automakers also saw modest increases, with Nissan Motor, Honda Motor, and Toyota reporting sales growth of 5.7 percent, 5.3 percent, and 1 percent, respectively.
Tesla, on the other hand, is expected to report lower deliveries in the first quarter, largely due to weaker demand for its aging car models and the ongoing backlash against its CEO, Elon Musk, who has been involved in helping the Trump administration identify ways to cut costs.
