News Coverage
The Outlook For Auto Tariffs, Affordability And EVs Isn’t So Rosy
Wednesday February 20, 2019
Article Highlights
- Michelle Krebs, the executive analyst at the car buying website Autotrader, said vehicle prices are already rising due to current import tariffs and made a dire prediction should levies be targeted at one particular product segment.
- “Imagine, if a 5% tariff was applied to the compact car segment it could cease to exist,” said Krebs. “It would certainly shrink dramatically.”
- “In 2012, 54% of vehicles sold were under $30,000 and only 6% were above $50,000,” said Krebs. “In 2018. only about a third of vehicles sold were under $30,000 and 23% of vehicles sold cost over $50,000.”
Forbes, Feb. 20, 2019 — There was no warning about an impending falling of the sky, but no one would have blamed those listening to presentations from a panel of auto industry analysts from at least thinking of taking cover.
Speaking before an audience of representatives from a number of auto companies and suppliers, the presenters [including Michelle Krebs, executive analyst at Autotrader] gave it to them straight about how current import tariffs and the specter of additional levies and rising vehicle prices will most certainly result in fewer new vehicle sales, and that the future of electric vehicles is probably not as rosy as proponents might think.