Prices are the “debacle of epic proportions” for the automotive industry: analyst

Car manufacturers face a major disruption while President Donald Trump’s prices seize the industry.

Ford, Nissan and Stellantis all bring major changes because they attack the samples, an analyst describing the 25% prices on imported cars as a “debacle of epic proportions” for industry.

“We believe that the effects of the prices of this pricing slate at the head could cause demand destruction of 15% to 20% in 2025 for new car purchases alone on the basis of our estimates,” Wedbush Securities analyst wrote on Sunday.

“Prices are a debacle of epic proportions for the automotive industry and American consumers such as the concept of a car made in the United States with all American parts is a fictitious story of fairy tales.”

The disturbance continued because the car manufacturers were hardly affected by the chaos of the market surrounding Trump’s reciprocal prices, the actions of Japanese and European car manufacturers falling again on Monday.

Nissan dropped 9.3% and Toyota dropped 5.9% in Tokyo, while Frankfurt, Volkswagen fell 4.6% in the afternoon trade and Stellantis dropped almost 6% in Milan. The actions of the owner of Jeep and Citroën have flowed by more than a third this year.

The 25% direct debit on imported vehicles, which entered into force last week, already sends shock waves via industry.

Nissan announced Thursday that this would stop taking American orders for two infiniti SUVs, which are made in Mexico, while Volkswagen said that he would add “import costs” to prices of prices.

The owner of Jeep and Ram, Stellantis, confirmed on Thursday that she had stopped production in two factories in Mexico and Canada and had experienced 900 workers in factories in Michigan and Indiana while sailing in tariff disorders.

Some car manufacturers are trying to enjoy chaos. Ford announced last week that it would extend employee prices to all customers to try to stimulate sales, while Stelllantis followed the step on Friday.

Analysts and car manufacturers have warned that prices will increase new already high cars prices and erase profits, with Global S&P estimating more than 20% of new light vehicles sold in the United States are built in Mexico and Canada.

Some manufacturers can get better than others.

In a Sunday note, Stifel analyst Stephen Gengaro said that Tesla, Rivian and Lucid are “well positioned” thanks to their supply chains based in the United States, adding that Tesla could even benefit from it if the rivals of Elon Musk’s Society choose prices due to prices.

However, Tesla was “obviously not immune to slower economic growth and a lower consumer,” wrote Gengaro.