Business
Start and Two
Tariffs, Germany, China, Q2 for Stellantis, Toyota, Ford, and VW.
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China accounts for about 17% of Earth’s human population, the EU for nearly 6%, and the US for just over 4%.
With access to the EU in addition to their domestic market (23% of everybody), Chinese brands could come to the U.S. with a hefty money shield to soak up any threat that tariffs pose to their profitability.
What happens next in the EU could well determine the focus of U.S. auto brands for years to come.
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What's Happening With the EU Tariffs?
EU countries are undecided on new tariffs for Chinese-built EVs, with Germany opposing due to reliance on the Chinese market, while France supports them along with Italy and Spain. The EU plans provisional duties of up to 37.6% on Chinese EVs, including models from BYD, Geely, and Tesla.
- The final decision in October requires a "qualified majority" of EU members to either block or support multi-year tariffs.
What's Going on in Germany?
Germany's VDA auto association urges the EU to drop planned tariffs on China-made EVs, with BMW's CEO calling them a "dead end" for global companies and decarbonization efforts. Additionally, Germany's cabinet blocked the sale of Volkswagen's gas turbine business to a Chinese firm for security reasons.
Any Updates from China?
China and the EU are negotiating to avoid new tariffs on Chinese EVs, with BYD and other automakers preparing for potential tariff hikes of up to 37.6%. Some Chinese EV makers, like Chery Auto and BYD, are shifting production to Europe to mitigate tariff impacts.
- Chery Auto plans to open its first European manufacturing site in Catalonia.
- BYD is building its first European EV production base in Hungary.
Stellantis
Tallied up, These Stellantis brands averaged a a Q2 increase of approximately 7.67%. But that isn't really how this works... Let's take it brand by brand.
- Ram: Q2 sales dropped 26%, with 90,100 trucks and 15,369 ProMaster vans sold.
- Jeep: Q2 sales fell 19%, with the Wrangler down 17%, Gladiator down 24%, and Grand Cherokee down 26%.
- Chrysler: Q2 sales decreased 19%, Pacifica down 16%, and 300 down 53%.
- Dodge: Q2 sales were down 17%, with Challenger down 11% and Charger down 34%.
- Alfa Romeo: Q2 sales up 8%, with Tonale sales offsetting declines in Giulia and Stelvio.
- Fiat: Q2 sales soared 119%, with 163 units sold compared to just one last year.
Toyota
Toyota has plenty to celebrate. The North American branch had a 68% increase in EV sales in Q2. Wow wee.
- Overall Sales: June 2024 sales reached 193,120 vehicles.
- EV Sales: Increased 68% in Q2, making up 44% of total sales, with 84,781 units sold in June.
- Toyota bZ4X: Best-ever sales with 1,353 units sold in June and 9,468 units year-to-date.
- Lexus: Achieved best-ever first half, with EV sales representing 36.5% of total sales volume.
Ford
Ford had a modest 1% increase in Q2 but maintained its position on top of Truck Mountain, where all trucks are welcome, but Ford trucks are usually voted into office. Truck politics are bonkers.
- Overall Sales: Rose 1% in Q2, led by a 5% gain in truck sales.
- Truck Sales: Best Q2 performance since 2019, with 308,920 vehicles sold.
- EV Sales: Increased 61% in Q2, with 23,957 units sold, including Mustang Mach-E and F-150 Lightning.
- Hybrid Sales: Up 56%, setting a new quarterly sales record with 53,822 units.
Volkswagen
VW is doing well, and if you ignore the ongoing slide of its ID.4 sales, it's doing reallllly well.
- Overall Sales: Increased 31% year-over-year to 100,612 vehicles in the US.
- ID.4 Sales: Decreased 15% in Q2, with 5,690 units sold, marking the lowest level since Q2 2022.
- Market Share: ID.4's share in total sales fell to 5.7%, down from 8.7% a year earlier.
- Year-to-Date: Close to 12,000 ID.4 units sold, down 28% from the previous year.
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How do U.S. auto brands prepare for affordable Chinese imports?
