GM, Hyundai, FCA US Report Strong Q1 Sales Ahead of Tariffs

Automakers like General Motors (GM) and Hyundai have reported significant sales increases in the first quarter of 2025 as consumers rush to purchase vehicles ahead of impending 25% tariffs on imported cars and auto parts set to take effect on April 3. GM's sales surged 17%, driven by strong demand for trucks and electric vehicles, while Hyundai experienced a 10% sales increase, with both companies benefiting from consumer anxiety over potential price hikes due to the tariffs. Analysts predict that the tariffs will raise vehicle prices, potentially adding thousands of dollars to what consumers pay, which has prompted many to buy sooner rather than later. Other manufacturers such as Honda and Nissan also saw modest growth, while Toyota and Ford experienced minimal sales changes, with Ford's sales declining slightly due to model discontinuations. The overall auto market is expected to face challenges moving forward as higher prices and reduced inventory may discourage buyers. Despite the current surge in sales, experts forecast a 3% drop in overall auto sales for 2025 as the impact of tariffs unfolds.