Suppliers lose pricing power Amid tariff pressures, EV cancellations

Many suppliers are losing pricing leverage with customers at a perilous moment as tariff pressures and electric vehicle program delays squeeze profits. “Suppliers are kind of stuck between a rock and a hard place,” said Michael Robinet, vice president of forecast strategy at S&P Global Mobility. “It’s not an optimal situation.” Parts makers, particularly smaller ones, often lack the leverage to negotiate price increases with customers as they adapt to shifts in trade policies and automaker product plans, executives and analysts said. That has put some suppliers in a vulnerable financial position, especially those that bet big on electrification profits that have yet to materialize.

Source: Automotive News

Within the past year, Chevrolet, Ford and Ram have upped the destination charge on their flagship half-ton pickups from $1,995 to $2,595 today. A decade ago, all three brands charged buyers less than half as much to ship those trucks from the factory to the dealership. It’s not just big, heavy pickups seeing sizable increases lately. Across the industry, destination charges — those inescapable, nonnegotiable fees lurking on every window sticker but conveniently omitted from most advertising — rose faster during the 2025 model year than any time in at least a decade, according to data from Edmunds.

Source: Automotive News

Ford Motor beat Wall Street estimates as Americans spent more on its pickups and SUVs than expected in the third quarter. Now the company is now looking to benefit from tariff relief and make up for lost vehicle production stemming from a fire at a critical aluminum supplier. Net income soared to $2.4 billion from $900 million, and shares in Ford rose more than 4% in after-hours trading. Ford Chief Executive Jim Farley thanked President Trump for expanding tariff relief on imported auto parts while taxing rivals that make medium- and heavy-duty trucks in Mexico or elsewhere.

Source: Wall Street Journal

Amid production shifts

Canada announced Thursday it will reduce the number of vehicles Stellantis and General Motors can import tariff-free, a move aimed at enforcing production commitments as the automakers realign operations in response to U.S. trade policies. Stellantis’ tariff-free allotment will be cut by 50% and GM’s by 24.2%, reflecting Ottawa’s stance that both companies no longer meet the criteria for exemptions. The decision comes amid escalating tensions over the Trump administration’s 25% tariff on vehicles assembled outside the United States, including those gathered in Canada. The tariff relief granted earlier this year had been contingent on continued domestic production and follow-through on planned investments.

Source: CBT News

Automaker Production Stoppages Begin Over Semiconductor Shortage

Automakers are growing increasingly anxious about a shortage of simple microchips causing production disruptions, which started this week at Honda plants in North America and are expected to spread around the world. The global car industry has been fretting about the potential fallout over Nexperia, a Netherlands-based chip maker, after the company stopped exporting products from China earlier this month. The issue, which stems from an unusual geopolitical dispute involving the Dutch, Chinese and U.S. governments, has left some automakers and suppliers with low chip supplies that could run out in the coming days, people familiar with the matter say.

Source: The Wall Street Journal

Automakers Hunt High and Low for Chips as Supply Crisis Worsens

Global automakers are scrambling to find chips and checking with suppliers to see if they have enough stockpiled, as a deepening semiconductor supply crunch related to Dutch firm Nexperia threatens car production across the industry. Beijing banned exports of Nexperia's products from China after the Dutch government seized control of the chipmaker last month, citing concerns about the transfer of technology to its Chinese parent, Wingtech, which has been flagged by the U.S. as a possible national security risk.

Source: Reuters

October 2025 delivered a seismic shock to EV sales in the U.S., with retail EV share collapsing to just 5.2 percent after the federal tax credit expiration, according to new data from J.D. Power and GlobalData. This represents less than half of September's record 12.9 percent EV share as the industry grapples with a harsh new reality of weakened consumer demand. "The expiration of federal EV credits on Sept. 30 caused EV shoppers to pull ahead their purchases, driving a significant increase in EV sales and inflating the overall industry sales pace," said Thomas King, president of the data and analytics division at J.D. Power. "Now that the federal EV credit has expired, the industry is dealing with the consequences of those accelerated purchases." This market recalibration comes as General Motors executes significant production cuts across its EV portfolio. The automaker partially idled its Factory Zero facility in Michigan, extending the shutdown to the end of the year to align production with slowing demand for the GMC Hummer EV and Cadillac Escalade IQ. GM spokesperson Kevin Kelly stated simply, "Factory Zero is making temporary adjustments to production to align to market dynamics."

GM has also temporarily paused production of Cadillac EVs at the GM Spring Hill assembly plant in Tennessee and changed its plans to turn the Lake Orion plant into an electric truck factory. Instead, it will build ICE-powered full-size trucks and SUVs. Additionally, GM has discontinued its slow-selling Chevy BrightDrop electric commercial van, indefinitely idling the CAMI assembly plant in Canada. The EV sales collapse reflects deeper challenges in the market. "Pricing and infrastructure remain the key barriers," observed Eric Anderson of S&P Global Mobility, noting that "even with incentives, affordability has been an issue." With the federal incentive gone, manufacturers now face painful choices between absorbing costs or sacrificing volume. J.D. Power notes some manufacturers have increased EV discounts to offset the credit loss, with average EV incentives reaching $13,161 in October, up $2,211 from a year ago.

This market shift is triggering a strategic pivot across the industry. "Many BEV launches have been delayed or cancelled, while ICE programmes are being extended," Anderson confirmed, observing that hybrids are experiencing a renaissance as consumer preferences evolve. The data support this trend - hybrid market share rose to 14.2 percent in October, while plug-in hybrids faced the steepest decline, dropping to just 1.0 percent market share. GM now confronts the challenge of rebalancing its ambitious electrification strategy with market realities. The automaker has temporarily idled production and reduced shifts at Factory Zero while managing inventory of its large electric trucks and SUVs. As the industry navigates what J.D. Power calls a "significant recalibration," manufacturers are learning that, in the words of their senior vice president Tyson Jominy, "A singular focus on any one technology - be it EVs or hybrids - risks repeating past missteps."

Source: GM Authority

Nine 2025 and 2026 vehicles across seven brands got safety nods for their exceptional protection based on crash tests, while models from the same brands failed to win awards. The Insurance Institute for Highway Safety ratings represent one of the auto industry’s most followed safety stamps of approval. Tweaks by automakers to their vehicles’ designs help them attain the nonprofit group’s highest awards while failure to meet its standards result in subpar ratings. For instance, improvements to several crossovers elevated their ratings in the recent testing round. BMW’s X3 nabbed the group’s premier Top Safety Pick+ honor with its improved headlight safety, and Toyota’s Corolla Cross and Nissan’s Rogue earned the next highest award of Top Safety Pick by achieving better side crash test results.

Source: Auto Dealer Today

Researchers say European PHEVs emit almost as much CO2 as gas cars, with real-world electric driving far below claimed levels.

Plug-in hybrid electric vehicles (PHEVs) have been promoted as a sort of middle ground between gasoline cars and full EVs, a stepping stone for those interested in extending fuel mileage and reducing their environmental impact but still wary about taking the full electric leap.

But a study by Transport & Environment, a European NGO that promotes sustainable transport, claims that PHEVs aren’t as green as advertised, at least not in the real world
The organization analyzed onboard data from more than 800,000 PHEVs registered in Europe between 2021 and 2023, finding real‐world carbon emissions are about 4.9 times higher than official lab tests indicate.

T&E says while many test protocols assume PHEVs reduce emissions by up to 75%, the data suggests they average just 19% less CO₂ than conventional gasoline or diesel vehicles. The problem lies with what’s known as the “utility factor,” the assumed amount of driving performed solely on electric power. Estimates based on testing protocols performed in lab settings put it at around 84%; T&E’s data indicates the real figure is closer to 27%. That’s because even when the vehicle is supposedly in electric mode, the engine kicks in for nearly a third of those miles, says T&E, pushing emissions up further.

Source: Autoweek