Tariffs Disrupt Forecasts, Shift Strategies: Automotive Week

This week in auto news: US tariffs dominated headlines as Mexican auto parts narrowly avoided a 25% levy following talks between Presidents Sheinbaum and Trump. Ford withdrew its 2025 forecast and raised prices on Mexico-made vehicles, prompting strategic shifts among automakers. Meanwhile, Tesla faced leadership scrutiny, Zoox issued a recall for its robotaxis, and Chinese brands continued to eye Mexico's market.

Despite industry challenges, Mexico’s light vehicle market reported slight year-over-year growth.

Start your engines—this is the Week in Automotive!

Uber’s 1Q25 Earnings Miss, But Trip Volume Soars 18% YoY

Uber Technologies reported 1Q25 earnings that fell short of revenue expectations, driven by slowing growth in its core ride-hailing segment in the United States. Despite this, the company posted earnings per share (EPS) of 83-cents, well above the 50 cents analysts had expected, and expressed confidence in future performance through increased international activity, expanded delivery services, and new autonomous vehicle partnerships.

Amazon's Zoox Recalls Robotaxis After Software-Linked Crash

Amazon-owned autonomous vehicle company Zoox issued a voluntary software recall for 270 vehicles after a crash involving one of its unoccupied robotaxis in Las Vegas on April 8, 2025. According to filings submitted to the National Highway Traffic Safety Administration (NHTSA) on May 1, the automated driving system had a defect that could inaccurately predict the movements of other vehicles, increasing the risk of collisions.

Automakers Adjust Strategies, Slow Decarbonization Amid Tariffs

Amid ongoing tariff uncertainty, automakers have scaled back production to focus on select models, adopted region-specific strategies, and slowed progress in vehicle decarbonization.

Ford Raises US Prices on Mexico-Made Cars Over Tariff Costs

Ford has raised US prices for three Mexico-manufactured models—the Mustang Mach-E, the Maverick, and the Bronco Sport—by up to US$2,000, citing the financial impact of tariffs imposed by President Donald Trump’s administration. The price adjustments apply to vehicles assembled after May 2 and are expected to reach dealerships by late June.

Ford Pulls 2025 Forecast Over US$1.5 Billion Tariff Cost Concerns

Ford has withdrawn its 2025 financial forecast, citing rising uncertainty over the impact of tariffs, which the company estimates could cost up to US$1.5 billion before interest and taxes. Following the announcement, Ford’s shares dropped 2.3% in after-hours trading, falling to US$14 per share. 

Lynk & Co Partners with Zeekr to Bring SUVs to Mexico

Lynk & Co, the Swedish automotive brand, is set to enter the Mexican market in collaboration with the Chinese automaker Zeekr. The initiative aims to promote the adoption of electric and hybrid vehicles in Mexico.

Mexico’s Light Vehicle Sales Rise 1.4% YoY Despite April Dip

Mexico recorded sales of 473,323 light vehicles between January and April 2025, a 1.4% increase compared to the same period in 2024, according to the National Institute of Statistics and Geography (INEGI). However, April sales alone fell by 4.6%, with 108,298 units sold—5,198 fewer than in April 2024.

Chinese Luxury Auto Brands Eye Mexico After BYD, MG Success

Chinese luxury automotive brands have announced plans to expand into the Mexican market, building on the strong performance of Chinese volume brands in the country. In recent years, brands like BYD, Chirey, and MG have entered Mexico, achieving annual sales of approximately 60,000 units, driven by competitive pricing and technological innovation.

Mercedes to Localize Production in Alabama by 2027 Amid Tariffs

Mercedes-Benz will begin producing a new core-segment vehicle at its Tuscaloosa, Alabama, plant starting in 2027. The strategic decision aligns with broader efforts to localize production in response to evolving trade policies, rising costs, and market dynamics in the United States. While the exact model has not been confirmed, the GLC SUV—Mercedes-Benz’s most imported core-segment vehicle—sold 64,163 units in the United States in 2023.

Tesla Board Weighs Musk Successor Amid Sales, Margin Declines

Tesla is navigating one of the most challenging periods in its history as its board of directors explores the possibility of finding a successor for CEO Elon Musk. The move comes amid a significant downturn in the company’s performance, including declining sales and shrinking profit margins.

Mexican Auto Parts Avoid 25% US Tariff After Sheinbaum Call

Following a call between President Claudia Sheinbaum and US President Donald Trump, it has been confirmed that planned tariffs on Mexican auto parts will not take effect. President Sheinbaum welcomed the decision announced by US Customs and Border Protection (CBP), which exempts auto parts manufactured in Mexico from the proposed 25% tariff.