Trump's Tariffs Could Cost Buyers Around $2,000 Per Car

Good morning! It's Friday, June 20, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.

In this morning's edition, we're looking at what Trump's tariffs could cost the average car buyer and what they've already cost the German automotive industry. We're also checking out Stellantis' plans to possibly sell off Maserati, as well as another damn Ford recall.

We're ending the week strong, my friends. Let's get to it.

It sure is looking like car buyers are going to have to absorb the bulk of President Trump's $30 billion tariff nightmare. One consulting firm estimates the average car's price will rise by around $2,000, which is a hell of a lot of money when you consider how expensive new cars already are.

AlixPartners expects car companies to pass along around 80% of these tariff costs, which work out to about $1,760 per vehicle. Of course, that's just an estimate. Some prices will be higher, some will be lower. Both General Motors and Ford have already said they expect a respective $5 billion and $2.5 billion tariff impact just this year, and that they'd find ways to make up that deficit partly through price adjustments. From Bloomberg:

"These tariffs bring a big wall of cost," Mark Wakefield, global auto market lead for AlixPartners, told reporters in an online briefing. We see "consumers taking the majority of the hit."

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AlixPartners' predicted sales hit is more muted than some other projections because the firm sees tariff rates falling as the US negotiates trade deals with other countries. It forecasts the 25% auto tariff will ultimately fall to 7.5% on assembled autos, 5% on parts and even lower on cars and parts that are compliant with the US-Mexico-Canada trade agreement.

"This tariff wall is not likely to last forever," Wakefield said.

AlixPartners expects tariffs are going to end up cutting about 1 million vehicles from U.S. sales books over the next three years. Still, it also predicts U.S. auto sales to hit about 18 million new vehicles by 2030 — 1 million more than last year — as the impact of tariffs lessens.

President Trump's job-killing import tariffs cost German automaker about $576 million in April. I know we should never really feel bad for multi-billion dollar corporations, but cost increases like that end up hurting the consumer — as we just discussed in 1st Gear.

Right now, European automakers and suppliers that sell in the U.S. face a 25% tariff, that was introduced on April 3 as part of a fairly ill-advised move by Trump to increase domestic investment and manufacturing. From Automotive News:

"We have roughly estimated that German manufacturers probably incurred additional costs of around half a billion euros in their export business from Germany to the USA in April," VDA President Hildegard Mueller told the Funke media group.

I wouldn't count on these companies absorbing these costs forever. Audi — which has taken a "let's just ignore them and hope they go away" approach – has said it'll keep its current pricing through the end of June, but prices will likely go up next month. 

Stellantis is once again considering the possibility of selling off Maserati — a brand that has been struggling since before I was born. It's one of a handful of options the Transatlantic automaker is considering to right this sinking Italian ship.

Discussion's over Maserati's future kicked off before Stellantis' new CEO, Antonio Filosa, was appointed last month. They've been mostly steered by Chairman John Elkann, who made the viability of the company's 14 brands a priority as he interviewed candidates to fill the CEO job. From Reuters:

Stellantis hired consultant McKinsey early in April to advise it on the effects of the U.S. tariffs on Maserati and Alfa Romeo as the two brands prepare future plans. Stellantis affirmed then that it was fully committed to both brands.

However, a possible divestment of Maserati, its only luxury brand, is among the options McKinsey is exploring for Stellantis, the two sources told Reuters, adding the adviser's assessment was still in the early stages.

Stellantis still maintains this is all fugazi, saying in a statement, "Respectfully, Maserati is not for sale." I guess we'll see.

Filosa's predecessor Carlos Tavares, who resigned in December after a poor performance in the U.S. market, had refused to consider getting rid of any of the carmaker's brands.

But some investors and analysts say a streamlined portfolio would boost Stellantis' profit margins. Stellantis shares have lost two-thirds of their value since March last year. 

Maserati's sales fell by more than 50% in 2024 to just 11,300 vehicles, and the unit posted an adjusted operating loss of $298 million during the year. Those are some brutal numbers, especially when you consider the automaker released a bunch of new vehicles rather recently, like the GranTurismo, MC20 and Grecale.

Those models are going to have to do for now, as the company has no new model launches scheduled while it waits for a new business plan. That shouldn't be too long from now, though. It'll apparently be presented soon after Filosa starts his new job, and that's slated for this coming Monday. 

Here's what Reuters says could happen to the brand:

Stellantis' board has been divided over plans for Maserati, one source said.

Some board members think Stellantis is not in a position to sustainably re-launch Maserati and suggest selling it is the best option. Others think Maserati still has value and that selling its only luxury brand would be a huge reputational setback for Stellantis.

Chinese automakers, such as Chery, might be among those interested in buying European auto brands, to support their expansion in the region, where they still lack brand recognition among consumers.

I really do think Maserati makes some great-looking, fun-to-drive vehicles. It just needs to figure itself out when it comes to pricing, market segment, and quality.

Ford has ordered dealers to halt deliveries of certain in-stock Mustang Mach-Es that are impacted by a battery problem that can prevent the door from unlocking. Not ideal. One day, the Blue Oval will get this recall issue under control, but today isn't that day. From Automotive News:

The automaker is recalling 196,911 Mach-Es from the 2021 to 2025 model years in the U.S. because unexpected discharge of the 12-volt battery can cause the front door electronic latches to "retain their last lock/unlock status," according to an advance notice of the recall sent to dealers June 16 and obtained by Automotive News. The issue could cause passengers to be locked out or trapped inside.

Ford spokesperson Mike Levine said the recall also affects about 120,000 Mach-Es in markets outside the U.S. and that Ford was not aware of any accidents or injuries related to the issue. Ford Canada said 32,569 Mustang Mach-Es are affected in that country.

It was unclear how many of the roughly 300,000 recalled vehicles were on dealership lots and subject to the delivery hold.

Apparently, a software update is coming soon that'll address the recall, but until then, I guess owners just have to be careful.

Oh, and to add a little bit of insult to injury, earlier this week, Ford recalled 276 2025 Mach-Es because they have faulty park rods. That could increase the risk of a crash, according to AutoNews. Dealers have been ordered not to demonstrate or deliver any in-stock vehicles involved in that recall.

If it's a day that ends in "y" Ford is probably issuing a recall.

History.com

Solidarity forever, baby! If you want to learn more about the UAW's first contract with Ford (which you should), head on over to History.com.

I don't know about you guys, but this is the most Friday feeling Friday we've had in a long time. Let's ring it in with an absolute bop. Enjoy your weekend, friends.