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Foley Automotive Update 06 March 2025

Mar 06, 2025 - natlawreview.com
The Foley Automotive Update from March 6, 2025, highlights significant developments in the automotive industry, focusing on the impact of the Trump administration's tariff policies. Key points include the temporary exemption for USMCA-compliant automakers from 25% tariffs on U.S. imports from Canada and Mexico, and the doubling of U.S. duties on Chinese imports to 20%. The Canadian government plans to maintain retaliatory tariffs, and Mexico is set to announce tariffs on U.S. imports. The potential tariffs could significantly affect U.S. auto sales, with analysts predicting a decline of up to 2 million units if tariffs on automotive imports from Mexico and Canada are implemented. Additionally, the cost of new vehicles could rise by up to 25%, impacting affordability and sales pace.

The update also covers various market trends and regulatory changes, including the rise in domestic steel prices and the challenges of vehicle affordability. Notable developments in autonomous technologies and electric vehicles are discussed, such as Stellantis' debut of a Level 3 automated driving system and China's Xiaomi aiming to deliver over 300,000 EVs in 2025. The report also notes the increase in BEV sales in Europe and the impact of cybersecurity threats on EV chargers. The article concludes with insights into the automotive industry's response to these challenges, including cost-reduction strategies by auto suppliers and the introduction of national "right to repair" legislation in the U.S.

Key takeaways:

  • The Trump administration announced a one-month exemption from 25% tariffs on U.S. imports from Canada and Mexico for USMCA-compliant automakers.
  • U.S. new light-vehicle sales reached a SAAR between 16.1 and 16.3 million units in February 2025, but tariffs could lead to a decline of up to 2 million units annually.
  • Stellantis debuted a Level 3 automated driving system, STLA AutoDrive 1.0, expected to offer hands-free and eyes-off functionality at speeds up to 37 mph.
  • BEV sales in Europe increased 34% year-over-year in January 2025, achieving a 15% market share compared to 10.9% in January 2024.
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