See other World News Articles
Title: How Reliant Are Foreign Automakers On US Buyers?
Source:
[None]
URL Source: https://www.zerohedge.com/geopoliti ... e-foreign-automakers-us-buyers
Published: Apr 13, 2025
Author: Tyler Durden
Post Date: 2025-04-13 08:46:32 by Horse
Keywords: None
Views: 13
With global automakers facing uncertainty from U.S. auto tariffs, the importance of American car buyers has never been clearer. For many automakers, the U.S. is a key market responsible for over one quarter of revenue. In this graphic, Visual Capitalist's Marcus Lu, visualizes how reliant foreign automakers are on U.S. buyers, based on analysis from the Wall Street Journal. Please note that April-December 2024 data was used for Toyota, Honda, and Nissan. North American data was used for VW, Audi, Porsche, and Hyundai. Based on this dataset, Honda has the highest reliance on U.S. buyers. In 2023, the Japanese automaker saw its U.S. sales surge by 33%. Honda has committed over $1 billion to retool its Ohio manufacturing plants to be able to produce gasoline, hybrid, and EV models all on the same production line. Additionally, in partnership with LG Energy Solution, Honda is investing $4.4 billion in a new battery production facility in Ohio. A Background on U.S. Auto Tariffs According to S&P Global Mobility, almost half of new vehicles sold in the U.S. in 2024 were assembled outside of the country. The top five countries ranked by their value of U.S. vehicle imports are: Mexico ($78.5B) Japan ($39.7B) South Korea ($36.6B) Canada ($31.2B) Germany ($24.8B) Trump’s auto tariffs are intended to coerce automakers into moving their production to the U.S., though this is difficult in practice due to the complexity and globalization of modern supply chains. Automakers often rely on a vast network of international suppliers for parts and materials, and relocating entire production lines can take years and require massive capital investment. One automotive executive, speaking anonymously with CNN, stated that it takes at least three years for brand new automotive capacity to be constructed. By that time, a new administration could be in power, and the rules could change again. If you’re enjoying our content, check out The Best Selling Vehicle in Every State in 2024 on Voronoi, the new app from Visual Capitalist. 
Post Comment Private Reply Ignore Thread