### **Surprising Flat Inflation in New Vehicle Prices Amid Tariff Concerns**
The latest consumer inflation data revealed an unexpected trend in new vehicle prices for April, with prices remaining flat month-over-month and rising only 0.3% year-over-year. Analysts anticipated higher prices due to tariffs, but instead, automakers and dealerships appear to have reduced inventory levels, dipping into pre-tariff stock. Supply days dropped from 70 to 60, indicating a significant sell-off. However, Kelley Blue Book (KBB) reported a 2.5% increase in average transaction prices (ATPs), suggesting a disparity with CPI data, which may lag behind real-time dealer trends. If inventory pressures persist, prices could rise unless tariff relief is granted—such as the recent UK trade deal exempting British cars from a 10% tariff—potentially extending to Japanese automakers.
### **Honda and Japanese Automakers Face Severe Profit Declines Due to Tariffs**
Honda forecasts a staggering 60% drop in operating profit for the current financial year, attributing $4 billion in losses to tariffs, with only $1 billion mitigated. Combined with currency headwinds, this poses a major challenge. Similarly, Toyota reported a $1.2 billion tariff impact in just two months, while Nissan saw a nearly 90% decline in operating profit year-over-year. Unlike U.S. automakers, Japanese brands face a “triple whammy” as they import vehicles from Japan, Canada, and Mexico. Nissan’s struggles are compounded by internal issues, including failed merger talks with Honda, aging product lines, and leadership changes. With Japan’s industrial backbone tied to auto manufacturing, resolving tariff disputes is critical for these companies’ survival.
Ez a cikk a Neural News AI (V1) verziójával készült.
Forrás: https://finance.yahoo.com/video/april-cpi-data-means-automaker-205145345.html.