“Cars are becoming completely unaffordable,” Meunier advised Reuters. “It isn’t truthful for the center class or the decrease class, the individuals that may’t afford a car, to pressure them to purchase a used car … I feel it is the accountability of the federal government as nicely to maintain it doable for individuals to purchase a brand new car.”
U.S. President Donald Trump’s 25% tariffs on imported automobiles have rocked automakers in and outdoors of the U.S., most of which have turn out to be reliant on imports from Mexico and Canada.
The common transaction worth of a automobile in the U.S. “is north of $48,000,” based on an evaluation from Cox Automotive. The agency expects tariffs will add 10% to fifteen% to costs of affected fashions, and an general 5% soar in costs of automobiles not topic to the levies.
Among the many fashions most affected by tariffs are these priced underneath $30,000, virtually all of which are produced exterior america. Nissan’s Versa, which Cox mentioned has a mean transaction worth of about $20,000, is made in Mexico.
“With the tariff coming via, it will be tremendous tough,” Meunier mentioned. “The danger is that these (inexpensive) segments are going to vanish.” Whereas it may very well be doable for Nissan to construct less expensive automobiles in the U.S. as an alternative of Mexico, Meunier mentioned it “could be a problem if we’re not allowed to carry some components from Mexico.” Automakers are additionally dealing with tariffs on quite a lot of vital auto components beginning Might 3, together with engines, transmissions, lithium-ion batteries and different main parts.
The Nissan govt mentioned the Japanese automaker has the house to develop manufacturing in the U.S. The carmaker has 800,000-unit capability at its two U.S. auto meeting crops, and produced about 525,000 automobiles in the 2024 calendar 12 months.
Nonetheless, he mentioned Nissan is just not decreasing manufacturing capability in Mexico.
“We will settle for to pay tariffs for a time period and see how we are able to maneuver. We’ll have probably to regulate alongside the way in which, however we’ll be very cautious, as a result of finally, it is crucial that we maintain gross sales momentum.”
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