U.S. automakers including Stellantis and Ford Motor Co are rolling out expanded incentives to attract buyers, as consumers rush to purchase vehicles ahead of expected price increases linked to new tariffs.
Chrysler-parent Stellantis said on Friday it would extend employee-discount pricing to the general public on select 2024 models, including Jeep, Ram and Dodge vehicles, following a similar move by Ford earlier this week. The incentive program, dubbed “America’s Freedom of Choice,” gives consumers the option of receiving employee pricing or existing cash incentives and will run through April 30, the company said.
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“This week we launched aggressive and consistent incentive and marketing support for April, including an exciting and competitive enhancement that will allow our customers ‘America’s Freedom of Choice’ between employee price or current cash incentives,” a Stellantis spokesperson said.
Automakers have seen a short-term surge in vehicle sales as shoppers move to secure purchases before prices potentially rise. Edmunds reported that sales picked up in March amid growing concern over the impact of tariffs on automotive imports. Paul Zimmermann of Matick Automotive Group said his General Motors and Toyota dealerships saw a 15% year-over-year increase in the first quarter. “There for sure was just an uptick in leads, in foot traffic and in sales the last two weeks,” Zimmermann said. “We got a lot of anecdotal input feedback from folks that was a driver.”
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Former President Donald Trump’s imposition of a 25% tariff on automotive imports, coupled with a 10% baseline tariff on all imports, has disrupted supply chains and forced automakers to adjust production. Some companies have paused operations in Mexico and Canada, triggering layoffs in related U.S. facilities. Others are shifting production to the U.S. in response.
Japan’s Nissan said this week it would cut prices on its 2025 Rogue and Pathfinder models to help buyers navigate “a challenging car-buying landscape.” Hyundai Motor (005380.KS) has committed to holding current sticker prices through June 2. General Motors said on Friday it had not changed its April incentive offers.
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Despite the recent sales boost, automakers have warned lawmakers that long-term tariffs could force sharp vehicle price increases. Senate Commerce Committee Chair Ted Cruz said on his podcast Friday that one of the Detroit Three warned him average prices could rise by $4,500 once inventories dwindle. “It’s not just foreign cars that will go up,” Cruz said.
Inventory levels remain relatively healthy for now. As of early April, Edmunds reported an average of 48 days’ supply on dealer lots. Ford’s brand had 64 days of supply, Stellantis’ Jeep brand had a similar level, while Chrysler had just 15 days. Ram and Hyundai had 70 and 60 days respectively, and Nissan had 42 days.
Source: Reuters