Car makers’ silver lining turns out to have a cloud that could hurt US consumers
Most companies beat or met their estimates in June, but the cars Americans are buying are the ones most exposed to Trump’s proposed duties on imported vehicles and parts
Global car makers weighed down by the threat of tariffs could do with some good news, so a strong month for US car sales should have come as a relief. Alas, even this silver lining has a cloud. At face value, the market was alive and kicking in June, with most companies beating or at least meeting estimates. Even Nissan, which has been struggling in the US, reported a gain instead of the large sales decline predicted by analysts. Here’s the wrinkle: America’s obsession with gas-guzzlers means consumers are buying up models that are most exposed to President Donald Trump’s proposed duties on imported vehicles and parts, not to mention oil prices that are at a four-year high. Total light-vehicle sales rose about 2%. For the Japanese car makers, sales of light trucks — a segment that includes minivans, sports utility vehicles (SUVs) and pickups — rose about 10.5% from a year earlier, while passenger cars dropped by roughly the same amount. Light trucks now account for almost 70% of all...
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