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Daily 5

Thursday, December 19, 2024

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Subaru's plan to blunt 'huge' tariff impact

Welcome to the Dec. 19 edition of the Daily 5.

Tarriff talks among import brands are making headlines lately, and Subaru is no exception. The automaker, warning of a possibly "huge impact" from tariffs, is shoring up its defenses with options including ramping up U.S. production or even adding electric vehicle assembly. Subaru wants to see an increase in U.S. market share to 5 percent, from the roughly 4.2 percent it has today. CEO Atsushi Osaki said he wants to maintain Subaru's red-hot sales momentum even in the face of impending policy upheaval under the administration of President-elect Donald Trump. Subaru is on pace to notch U.S. sales of nearly 670,000 vehicles this year, a 6 percent increase over 2023.

"First, we hope to achieve a big target of 5 percent market share in the U.S.," Osaki said during a Dec. 18 roundtable with reporters at Subaru Corp.'s global headquarters in Tokyo. "If the overall demand is 16 million units, 5 percent is 800,000 units. So, that is a big target for us."

It's been a grim decade for cars, as American consumers have largely abandoned coupes and sedans in favor of SUVs and crossovers. But in the wake of the COVID-19 pandemic and microchip shortage, when new-vehicle prices soared to record highs, some consumers rediscovered cars out of necessity. Nowhere is that more visible than in the compact car market, and as affordability continues to weigh on the market, Kia aims to cash in with the 2025 compact K4, a new sedan replacing the Forte, priced from $23,145 including shipping, and taking on the segment's heavyweights, the Toyota Corolla and Honda Civic. With U.S. sales up 12 percent this year through November, the Forte/K4 are also on track to help Kia set another U.S. sales record in 2024.

Many consumers looking for inexpensive wheels have turned to used cars, and indeed CarMax Inc. said it recorded higher used-vehicle retail sales in its fiscal third quarter ended Nov. 30 compared with the same time last year. Net income rose by double digits, up 53 percent from its third quarter a year ago with net revenue up 1.2 percent from the same time last year. Sales rose 5.4 percent from Q3 2023.

And finally, please don't miss our stories on former Detroit Piston Vinnie Johnson's latest Piston Group feud, and Ram postponing its electric pickup until 2026.

That's it for today. Enjoy the rest of your day!

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Wes Raynal, assistant web editor

How Subaru CEO Atsushi Osaki will blunt 'huge' tariff impact in hunt for bigger U.S. share

Subaru CEO Atsushi Osaki weighs boosting U.S. output, adding EV production to minimize the pain of tariffs as he chases record sales.

READ MORE >

Kia aims to build upon entry-level success with new 2025 K4

As affordability continues to weigh on the market, Kia aims to cash in with the 2025 compact K4, an all-new replacement for the Forte, priced from $23,145 including shipping, and take on the segment's heavyweights, the Toyota Corolla and Honda Civic.

CarMax Inc. said it retailed 184,243 used cars in its fiscal 3rd quarter ended Nov. 30, up 5.4% year over year.

READ MORE >

Top F&I providers offer more than just products

Key factors to consider beyond product offering when choosing an F&I provider.

Read full article>

GM, Stellantis pull support from Michigan minority supplier council amid Piston Group feud

The automakers took the action after the minority organization earlier this month rejected a settlement agreement to end the yearslong litigation against Piston Group — a key supplier to the companies — over its minority certification, Crain's reported.

The launch of the electric Ram 1500 REV pickup has been delayed until 2026 amid 'slowing industry demand for half-ton BEV pickups,' the automaker said.

READ MORE >

Have some news to share? Want to offer your opinion? Please send your feedback to Philip Nussel at pnussel@crain.com

Market close

Winners and losers
Here are the top 5 winners and losers among 65 automotive companies followed by Automotive News on U.S. stock exchanges today.

Top 5 winners

	Yesterday's close	Today's close	Percent change
Polestar	$0.86	$0.94	9.31%
Lucid	$2.53	$2.63	3.95%
ACV Auctions	$20.21	$20.94	3.61%
CarMax Inc.	$81.42	$84.23	3.45%
U.S. Steel Corp.	$30.98	$31.72	2.39%

Top 5 losers

	Yesterday's close	Today's close	Percent change
Canoo	$0.13	$0.09	-25.16%
Mullen Automotive Inc.	$1.32	$1.19	-9.85%
Shyft Group Inc.	$12.31	$11.40	-7.39%
Workhorse Group Inc.	$0.81	$0.76	-6.60%
TrueCar	$3.94	$3.77	-4.31%

Quotes from 4 p.m. Dec. 19

Automakers
Here are today's stock trading results from 10 vehicle assembly companies trading on U.S. stock exchanges.

Automakers

	Yesterday's close	Today's close	Percent change
Ford Motor Co.	$9.69	$9.74	0.52%
General Motors	$49.99	$50.34	0.70%
Honda	$24.04	$23.70	-1.41%
Lucid	$2.53	$2.63	3.95%
Polestar	$0.86	$0.94	9.31%
Rivian	$13.06	$13.06	0.00%
Stellantis	$12.81	$12.84	0.23%
Tesla	$440.13	$436.17	-0.90%
Toyota Motor	$173.62	$174.21	0.34%
VinFast Auto Ltd.	$4.05	$4.11	1.48%