So we all agree that there will be some sort of tariff if not the whole 25%. Then we also have to see how manufacturers will actually decide how much of that % is applied towards the MSRP of a vehicle based on its component % of parts.
Which brand do you think will be the first to put that increase on its window sticker for 2026 first ?
Keep in mind, this is not a kiddie poll. Consider the country of origin of these manufacturers and their current diplomatic relationship with the US. Also, how there brand has been doing in the US market since 2019 ( market share right before the pandemic began and how it stands now).
Once you have answered the poll, you may post your reasoning in a brief discussion but please, do not make political comments or insult another poster. Lets all keep it healthy folks.
I think you may need to break VW, Audi, Porsche. Porsche will have no problem adjusting their price and still get a sale. Audi has some leeway, albeit they will have to see their competitor’s price. VW - who knows what they’ll do, they may just give up.
Lexus - Toyota - Toyota have higher local contents and their increase may not be as high as their competitor. They also have loyal customer base, market leader & good margin. They are in good shape IMHO.
I believe BMW would be the first one to reflect adjusted pricing for 2026 models starting from their ICE model sedans then leading to the EV line up and lastly their SUVs built in SC. We noticed increases in pricing with the Covid supply disruption and the majority of the consumers accepted it. MB simply couldnt manage it and we all witnessed it with the crazy EV deals that went out.
Followed by Porsche: Even if you exclude the target 911 clientele for a minute, they did pretty well with their remaining models and continue to do so till date. Keep in mind, the majority of their clients are not LH members stealing 12/15k leases.
Lastly, the Japanese auto builders are in a very tough spot. Since the pandemic started, Hyundai and Kia has already stolen a great market share from the big 3 Japanese brands. Any wrong move in this market, may cost them more of that sliding market share.
Looking forward for more quality responses from other great members !
That isn’t true, nothing firm has been communicated.
BMW is probably best positioned here, they can cost-balance between their large US production and overseas production and probably make it out with modest but relatively (to other brands) minimal increases.
Several japanese brands have alr taken action. Toyota is committing to keeping pricing relatively the same, but I bet money they’ll be cutting rebates.
I think reducing/eliminating rebates and subvented financing will be the first step to absorb the brunt of these changes. Nobody wants to hike prices if it can be avoided and people are less likely to complain about those things, even if the result is the same.
This is definitely the first thing OEMs will do since it is so easy to do. And it could make it harder for data to show the true effect of the tariffs. For example, if OEMs eliminate subvented financing on purchases, the total sale price reported might not look much different from six months ago. But the buyer’s payments could easily be $100 a month higher.
And BMW’s Best Sellers are made in the US I think. The question remains if parts get tariffed heavily too. X5 has like a 90% parts made in other countries content. That being said at least it won’t get double tariffed
I think you said it before. Good accountants will find away around a lot of these price increases. Theres def ways depending on how the laws are written. I’m sure they will find some loopholes that’s what they’re paid for.
Brands that can raise pricing ie Porsche lambo Ferrari will regardless. Budget vehicles can only get raised so much. People car shopping this month are going to be opening their 401k statements and reconsidering what they buy.
