Ford and GM achieve significant sales jumps amid tariff concerns

In the United States, several major automakers reported significant increases in car sales during the second quarter of 2025, as consumer demand surged ahead of anticipated tariffs implemented by the Trump administration. Companies such as General Motors and Ford notably capitalized on these consumer trends, which were influenced by fears of price increases stemming from the tariffs. General Motors, for example, saw a 7.3 percent rise in vehicle deliveries, amounting to 746,588 sales; this was fueled by solid performances in pickup trucks and SUVs, particularly through models perceived to be more affordable, like the Chevrolet Equinox and Chevrolet Trax. Ford experienced an even more notable increase, achieving a 14.2 percent jump in sales, reflecting customer enthusiasm around a popular pricing incentive program that offered employee pricing on many of its models. Popular vehicles such as the F-Series pickup and the Explorer SUV contributed to this success. While the company saw decreased sales for its electric models like the F-150 Lightning Truck, there was a noteworthy increase in hybrid vehicle sales, showcasing a shift in consumer preferences as demand evolves. Japanese automakers Toyota and Honda, as well as South Korean brands Kia and Hyundai, also reported quarterly sales increases of between five to ten percent, indicating a broader positive trend within the automotive sector amidst fears prompted by the tariff situation. Contrarily, Nissan reported a 6.5 percent drop in sales with figures reaching 221,441, and Jeep-owner Stellantis was expected to see a 12.8 percent decline in sales, dropping to just over 300,000 vehicles. Although retail car prices have not escalated significantly as of yet, analysts project the likelihood of an eight percent rise due to the new tariffs. Concern remains, however, as analysts indicate that consumer sensitivity to pricing could hinder the automakers' ability to raise prices without losing sales. Garrett Nelson, an equity analyst at CFRA Research, noted that buyers are particularly cautious about costs, and uncertainty surrounding economic conditions and potential Federal Reserve interest rate cuts could lead to a decrease in car purchases in future quarters.