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Some of the world's biggest automakers are already in trouble. Now, they say Trump's proposed tariffs could push them over the edge.
President Trump is on imports from Mexico and Canada, which are set to take effect on March 4.
He argues the move will boost U.S. manufacturing and generate government revenue - but car companies warn it will send prices soaring and further weaken an already fragile market.
New car prices are at historic highs, and across the economy. For struggling automakers, the tariffs could be devastating.
'[American tariffs are] going to be a huge impact to a profit,' Nissan's CEO, Makoto Uchida, said in the company's recent earnings call.
Multiple best-selling vehicles in Nissan's lineup, including the Kicks, Sentra, and Versa, are made in Mexico. The company was the fifth best-selling car brand in the U.S. in 2024.
The Versa (which Nissan plans to discontinue after the 2025 model year) and Sentra are two of the least expensive vehicles on the market with low-to-mid $20,000 base prices.
The average new vehicle in the U.S. sold for around $48,000 in 2024.
But the 25 percent tariff could nullify the competitive advantage that the Sentra and the Versa have in the market, sending prices for the small sedans soaring. The more expensive vehicles could exacerbate the company's financial problems.
Nissan just reported a $93.6 million sales loss at the end of 2024, prompting .
In November, executives started raising alarm, saying the brand only had '12 to 14 months' of cash to survive, according to the .
The company has been in merger talks with Honda with hopes to stay alive, but the brands have not been able to piece together a deal.
In response to the tariffs, Uchida said the company may send production of the vehicles to Japan, a country that has received fewer tariff threats from the Trump administration.
Meanwhile, Stellantis - the parent company of Jeep, Dodge, Chrysler, and Ram - also reported a deep slump, with last year.
The company's most profitable vehicles in the U.S. market, including several Ram pickups and the Jeep Compass, are built in Mexico.
The Compass, with a starting price of $26,900, sold 111,697 units last year. That was a 16 percent jump in sales from 2023.
During the company's recent earnings call, Stellantis' executive chairman, John Elkann, said discussions about the impact of tariffs is 'really premature.'
However, he said the company believed trade policies between the U.S. and neighboring countries 'should remain tariff-free' to ensure that vehicle pricing doesn't spike further.
Other brands, like GM, Volkswagen, and Ford, have produced cars in Mexican and Canadian factories for decades.
These three brands are all on better financial footing than Stellantis and Nissan. They reported growing sales in the U.S. in 2024.
But their exposure to tariffs could make some of their most popular vehicles more expensive or cut deeper into their margins.
The average cost of a new car may , Wolfe Research analysts forecast earlier this year.
Of the large American automakers, Tesla appears to be in solid position over many of its competitors.
Elon Musk's electric brand produces a majority of American-sold cars domestically, though it sources many of its parts, including steel, from international suppliers.
Tesla has production facilities in Texas, California, New York, and Nevada along with foreign production facilities in Germany and China.
President Trump is on imports from Mexico and Canada, which are set to take effect on March 4.
He argues the move will boost U.S. manufacturing and generate government revenue - but car companies warn it will send prices soaring and further weaken an already fragile market.
New car prices are at historic highs, and across the economy. For struggling automakers, the tariffs could be devastating.
'[American tariffs are] going to be a huge impact to a profit,' Nissan's CEO, Makoto Uchida, said in the company's recent earnings call.
Multiple best-selling vehicles in Nissan's lineup, including the Kicks, Sentra, and Versa, are made in Mexico. The company was the fifth best-selling car brand in the U.S. in 2024.
The Versa (which Nissan plans to discontinue after the 2025 model year) and Sentra are two of the least expensive vehicles on the market with low-to-mid $20,000 base prices.
The average new vehicle in the U.S. sold for around $48,000 in 2024.
But the 25 percent tariff could nullify the competitive advantage that the Sentra and the Versa have in the market, sending prices for the small sedans soaring. The more expensive vehicles could exacerbate the company's financial problems.
Nissan just reported a $93.6 million sales loss at the end of 2024, prompting .
In November, executives started raising alarm, saying the brand only had '12 to 14 months' of cash to survive, according to the .
The company has been in merger talks with Honda with hopes to stay alive, but the brands have not been able to piece together a deal.
In response to the tariffs, Uchida said the company may send production of the vehicles to Japan, a country that has received fewer tariff threats from the Trump administration.
Meanwhile, Stellantis - the parent company of Jeep, Dodge, Chrysler, and Ram - also reported a deep slump, with last year.
The company's most profitable vehicles in the U.S. market, including several Ram pickups and the Jeep Compass, are built in Mexico.
The Compass, with a starting price of $26,900, sold 111,697 units last year. That was a 16 percent jump in sales from 2023.
During the company's recent earnings call, Stellantis' executive chairman, John Elkann, said discussions about the impact of tariffs is 'really premature.'
However, he said the company believed trade policies between the U.S. and neighboring countries 'should remain tariff-free' to ensure that vehicle pricing doesn't spike further.
Other brands, like GM, Volkswagen, and Ford, have produced cars in Mexican and Canadian factories for decades.
These three brands are all on better financial footing than Stellantis and Nissan. They reported growing sales in the U.S. in 2024.
But their exposure to tariffs could make some of their most popular vehicles more expensive or cut deeper into their margins.
The average cost of a new car may , Wolfe Research analysts forecast earlier this year.
Of the large American automakers, Tesla appears to be in solid position over many of its competitors.
Elon Musk's electric brand produces a majority of American-sold cars domestically, though it sources many of its parts, including steel, from international suppliers.
Tesla has production facilities in Texas, California, New York, and Nevada along with foreign production facilities in Germany and China.
