The buyers car they will incur most of the cost of $ 30 billion from their duties US President Donald Trump’s, raising the already high car prices in the US by nearly $ 2,000 per vehicle, according to Alixpartners consulting.
Company expects automakers to pass on 80% of Trump’s duties costs – which estimates $ 1,760 more per car, Bloomberg reports.
Alixpartners, in the context of its annual global prospects for the automotive industry, also warned that Government policies against electric vehicles (EV) are in danger of relegating US automakers to small players in the global electric vehicle market. “These duties bring a large cost wall,” said Mark Wakefield, head of the world car market for Alixpartners, to online reporters. We see that “consumers take on most of the blow”.
General Motors and Ford Motor have already stated that they are expecting an impact of $ 5 billion and $ 2.5 billion this yearrespectively, although they say they will find off -pricing offenses.
These highest prices will lead to about 1 million fewer vehicles to be sold in the US over the next three years, Wakefield said. However, the consultant expects that car sales in the US will reach 17 million in 2030, 1 million more than last year, as the impact on duties will retreat.
Alixpartners’ planned sales strike is more sluggish than some other forecasts, Bloomberg commented because the company sees that duties are decreasing as the US is negotiating trade agreements with other countries. It provides that the 25% duty for cars will eventually decrease to 7.5% for assembled cars, 5% for spare parts and even lower for cars and spare parts compatible with the US -Mexico – Canada trade agreement.
“This tariff wall is not likely to last forever,” Wakefield said. “What is likely to have a longer impact is the Trump government’s move to reduce and abolish the incentives to promote the sale of electric vehicles, such as the $ 7,500 tax deduction for the consumer to buy a battery model.”he said. This will remove car buyers from electric cars as they will “follow their wallet” and buy traditional gasoline vehicles, Wakefield said.
Alixpartners reduced its prediction for EV sales in the US almost half. It now sees that battery electric vehicles will make only 17% of car sales in the US in 2030, from a previous prediction that EVs would make up 31% of sales by then.
Traditional internal combustion vehicles will represent half of sales in the US in 2030, from Alixpartners’ previous prediction that they would be only one -third of sales.
The consultant sees that Traditional hybrid vehicles will represent 27% of the US market in 2030from his previous provision for 24%, while Plug-in hybrids and extensive electric vehicles will only represent 6% of car sales in the US until thenfrom the previous provision for 10%.
This will affect the competitiveness of US automakers and may let them depend on China, the leading country in the electric vehicle sector, Wakefield said. “It is much more likely to end up granting licenses or make joint ventures or otherwise using China platforms and technologies,” he said in an interview.
“The aggressive reduction in EV support will leave US automakers with the dubious distinction being the world leader in the big, gasoline engines, a hundred -year -old technology,” Wakefield said. “They will have the best V8 engines in the world by 2028,” he also said about US automakers. “They will probably also have the unique V8 engines in the world by 2028,” he added, closing his interview.