North American car production faces 9% decline by 2025
Analysts predict that car production in North America may decrease by 9% in 2025 due to the tariffs imposed by President Donald Trump, which raise vehicle prices and influence manufacturers' decisions.
According to the S&P Global Mobility report, global production of new cars this year will be 87.9 million units. This represents a 2% decline from the previous year, equating to a reduction of approximately 1.55 million units. The American market could be particularly affected, with a projected 3% drop in sales.
The tariffs introduced by the Trump administration result in higher costs for both consumers and manufacturers. Approximately 50% of new cars sold in the US are produced abroad, and between 30% to 60% of car parts are imported. In response, some companies, such as Audi and Jaguar Land Rover, have halted exports to the United States, relying on existing stock and hoping for relief from tariffs in the coming months.
Other manufacturers are choosing to relocate production to the US. Volvo has announced the start of production for a second model in the country, likely the XC60 or XC90 in hybrid versions. Honda plans to locally produce the Civic Hybrid model, and Mercedes-Benz intends to increase its production capacity in the United States, although this process may take several years.
Meanwhile, the CEO of the VW Group, Oliver Blume, revealed that Audi is in discussions with the Trump administration about opening a factory in the US. Although Volkswagen already has plants in the country, all Audi models currently sold locally are imported.
