SUVs at a Chevrolet dealership in Oshawa, ON.
Rene Johnston | Toronto Star | Getty Images
General Motors and other automakers are reporting notable increases in their first quarter U.S. vehicle sales, as the automotive industry braces for the impacts of President Donald Trump’s auto tariffs that are set to take effect this week.
GM on Tuesday reported a 16.7% jump in new vehicle sales compared with the first quarter of 2024, led by incremental gains in sales of new all-electric vehicles such as the Cadillac Escalade IQ and Cadillac Optiq, as well as notable gains in entry-level crossovers and full-size SUVs.
The Detroit automaker is expected to have significantly outpaced overall industry sales for the first quarter, which appear to be more robust than expected. Auto analysts originally had forecast roughly 1% or less year-over-year sales growth.
Hyundai Motor and Honda Motor, meanwhile, reported quarterly year-over-year gains of roughly 10% and 5.3%, respectively. An outlier so far is Ford Motor, which reported a 1.3% sales decline during the first quarter that was largely due to the discontinuation last year of its Ford Edge SUV.
The sales results come ahead of tariffs ordered by Trump taking effect this week, including 25% levies on imported vehicles starting Thursday. The auto industry is also awaiting announcements of potential additional “reciprocal” tariffs that could affect automakers on Wednesday.
J.D. Power last week forecast robust industry sales for March as consumers flocked to dealerships to purchase a new vehicle to avoid any potential increase in prices due to tariffs.
“The 13% year-over-year retail sales increase is particularly strong, enabled by consumers accelerating purchases to avoid potential tariff-related price increases,” Thomas King, president of the data and analytics division at J.D. Power, said in a release. “While the tariff situation remains both fluid and uncertain, the prospect of tariffs is already beginning to affect the industry.”
Ford’s move to end production of the Edge, which was produced in Canada, was unrelated to Trump’s tariffs.
While Ford’s overall sales experienced a slight decline in the quarter, the automaker reports its retail sales, which exclude its fleet business, were up 5% year-over-year. The retail sales were driven by a 19% increase in March, Ford said.
This is a developing story. Please check back for additional updates.
