South Korean carmaker Hyundai warned US dealers it is evaluating its pricing strategy in the face of 25% tariffs on imported vehicles and parts announced by President Donald Trump.
Randy Parker, CEO of Hyundai and Genesis Motor North America, told dealers in a note "current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2".
Analysts expect carmakers will have to significantly increase vehicle prices if the new tariffs remain in place for an extended time, leaving consumers to pay more for vehicles that have price tags averaging near $50,000 (R919,025).
Cox Automotive estimated 25% tariffs will add $3,000 (R55,136) to the cost of a US-made vehicle and $6,000 (R110,272) to vehicles made in Canada or Mexico.
"Tariffs are not easy," Parker told dealers.
Parker also said the carmaker is "fortunate that we do not depend heavily on imports from Mexico and Canada, and we have been sure footed in our US investments".
Hyundai announced a $21bn (R385.94bn) investment in the US on March 24, two days before Trump announced 25% auto tariffs that are set to go into effect this week.
In an interview with NBC News on Saturday, Trump said he "couldn't care less" if carmakers hike prices, "because if the prices on foreign cars go up, they're going to buy American cars".
Hyundai warns US dealers of price hikes due to 25% tariffs
Image: Joe Raedle/Getty Images
South Korean carmaker Hyundai warned US dealers it is evaluating its pricing strategy in the face of 25% tariffs on imported vehicles and parts announced by President Donald Trump.
Randy Parker, CEO of Hyundai and Genesis Motor North America, told dealers in a note "current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2".
Analysts expect carmakers will have to significantly increase vehicle prices if the new tariffs remain in place for an extended time, leaving consumers to pay more for vehicles that have price tags averaging near $50,000 (R919,025).
Cox Automotive estimated 25% tariffs will add $3,000 (R55,136) to the cost of a US-made vehicle and $6,000 (R110,272) to vehicles made in Canada or Mexico.
"Tariffs are not easy," Parker told dealers.
Parker also said the carmaker is "fortunate that we do not depend heavily on imports from Mexico and Canada, and we have been sure footed in our US investments".
Hyundai announced a $21bn (R385.94bn) investment in the US on March 24, two days before Trump announced 25% auto tariffs that are set to go into effect this week.
In an interview with NBC News on Saturday, Trump said he "couldn't care less" if carmakers hike prices, "because if the prices on foreign cars go up, they're going to buy American cars".
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