**Surprise Drop in New Vehicle Prices as Dealers Clear Inventory**
April’s CPI data revealed flat month-over-month new vehicle prices, with only a 0.3% annual increase—lower than expected despite tariff concerns. Analysts suggest automakers and dealers tapped into built-up inventory, reducing supply from 70 to 60 days in just one month. However, Kelley Blue Book reports a 2.5% rise in average transaction prices, hinting at a potential rebound as tariffs loom.
**Honda Faces 60% Profit Drop Amid Tariff and Currency Pressures**
Honda forecasts a staggering 60% decline in operating profit this year, citing a $4B tariff impact and currency headwinds. The automaker expects to offset just $1B, leaving a $3B hit—mirroring struggles seen at Toyota and Nissan. With production spread across Japan, Canada, and Mexico, Honda faces a “triple whammy” in key markets.
**Nissan’s 90% Profit Plunge Reflects Deeper Struggles Beyond Tariffs**
Nissan’s operating profit plummeted nearly 90% in its latest fiscal year, compounding existing challenges like failed merger talks and leadership shakeups. While tariffs exacerbate the pain, the automaker’s outdated lineup and internal turmoil signal a longer road to recovery. Japan’s auto sector, a critical economic driver, remains under intense pressure.