Extra, Extra....Read All About It!

[Jamie@ScoutMotors]

Why would the companies not just charge more for the vehicles?

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

A BIG chunk of the volume market can't afford the price of vehicles already. The average car loan term is over five years and negative equity carryover is the highest it has been in years. Raising prices will only make this worse.

Honestly, I fully support the Tariffs. Being able to manufacture a car cheap in Mexico and Canada and then charging the crap out of the American Consumer is moronic. I think making it America and charging a fair amount is way better than having to know the rip off that's happening. I can't wait for them to go back in place, and for the pause to be undone.

Tariffs in the auto industry are complicated due to supply chains and factories in Canada and Mexico. The car industry operates on forecasts 10 years into the future. So you can't say there is a trade agreement with Mexico and Canada one week, and then the next week, it will be 25% more expensive without drastic consequences. This is why some of these tariffs get walked back. If you look at how long it takes us to build a factory and get it up to production speed, you have some idea of how slow the process can be. Not to mention the huge capital expenditure required to do something like that.

 

[THil08]

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

A BIG chunk of the volume market can't afford the price of vehicles already. The average car loan term is over five years and negative equity carryover is the highest it has been in years. Raising prices will only make this worse.



Tariffs in the auto industry are complicated due to supply chains and factories in Canada and Mexico. The car industry operates on forecasts 10 years into the future. So you can't say there is a trade agreement with Mexico and Canada one week, and then the next week, it will be 25% more expensive without drastic consequences. This is why some of these tariffs get walked back. If you look at how long it takes us to build a factory and get it up to production speed, you have some idea of how slow the process can be. Not to mention the huge capital expenditure required to do something like that.

I really don't see the tariffs going in place. All this is at the moment is a game of Delay.

 

[bb00799]

For factory and employees, if I had billions like these companies do, I would start an emergency rebuild, hire and train on the job, wages will be higher so people will want to work. It should take no more than a year when looking at the numbers that are on the pages.

For the car market itself: Used car prices will slightly rise until the companies figure out their life, maybe it's time legacy auto dies that fate is on them. And new car prices will rise. And by 2026 its being stated that the car market prices will drop and stabilize.

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

A BIG chunk of the volume market can't afford the price of vehicles already. The average car loan term is over five years and negative equity carryover is the highest it has been in years. Raising prices will only make this worse.



Tariffs in the auto industry are complicated due to supply chains and factories in Canada and Mexico. The car industry operates on forecasts 10 years into the future. So you can't say there is a trade agreement with Mexico and Canada one week, and then the next week, it will be 25% more expensive without drastic consequences. This is why some of these tariffs get walked back. If you look at how long it takes us to build a factory and get it up to production speed, you have some idea of how slow the process can be. Not to mention the huge capital expenditure required to do something like that.

and you guys are moving fairly fast. My company is putting in a new factory (about the same cost if reporting from Reuters is to be believed) and its a minimum 5 year project. But my industry also is drastically more expensive and risk averse then Automotive

 

[LastDayScout]

For factory and employees, if I had billions like these companies do, I would start an emergency rebuild, hire and train on the job, wages will be higher so people will want to work. It should take no more than a year when looking at the numbers that are on the pages.

For the car market itself: Used car prices will slightly rise until the companies figure out their life, maybe it's time legacy auto dies that fate is on them. And new car prices will rise. And by 2026 its being stated that the car market prices will drop and stabilize.

Interesting thoughts. But, I think it will take more money and time than you mention. I just looked this up following the top 10 list of manufacturers producing in Mexico mentioned above in the same order... Conicidentially, all of them produced nearly or over 200,000 units in Mexico. That is the planned capacity of the Scout factory.

General Motors (GM): As of December 31, 2024, had $19.9 billion in cash and cash equivalents.
Nissan: September 30, 2024, $9.2 billion USD.
Stellantis: Cash on Hand as of December 2024 : $38.58 Billion USD
Ford: Cash on Hand as of December 2024 : $38.34 Billion USD
VW: Cash on Hand as of September 2024 : $88.23 Billion USD
Hyundai Motors (Kia) as of December 2024: $13.81 Billion USD
Toyota: December 31, 2024 was $87.207 billion USD
Mazda: Dec 2024 $6.15 billion USD
Honda: Cash on Hand as of December 2024 : $33.27 Billion USD
Audi: part of VW

 

[cyure]

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

A BIG chunk of the volume market can't afford the price of vehicles already. The average car loan term is over five years and negative equity carryover is the highest it has been in years. Raising prices will only make this worse.



Tariffs in the auto industry are complicated due to supply chains and factories in Canada and Mexico. The car industry operates on forecasts 10 years into the future. So you can't say there is a trade agreement with Mexico and Canada one week, and then the next week, it will be 25% more expensive without drastic consequences. This is why some of these tariffs get walked back. If you look at how long it takes us to build a factory and get it up to production speed, you have some idea of how slow the process can be. Not to mention the huge capital expenditure required to do something like that.

Thank you for the reply Jamie. It’s good to have information from the industry affected as to what it would do to the car market if these are actually put in place. I am that typical consumer. My car is 12. I had to assist my two 20 something kids purchase new vehicles in 2023 and trying to find cars they liked in their price range was a challenge. Thinking ahead for the Scout I know I’m looking at a hefty payment and it needs to be a vehicle I can run for 12 to 15 years. I am of that age where the car payment is as much if not more than my first house payment and that’s insane to me. I am glad that Scout is taking all of these factors into consideration and working to give us the best value for money with reliability built in so we don’t have to run out and replace it in a few years. I appreciate you Jamie.

 

[BartMan Terra Total EV]

Honestly, I fully support the Tariffs. Being able to manufacture a car cheap in Mexico and Canada and then charging the crap out of the American Consumer is moronic. I think making it America and charging a fair amount is way better than having to know the rip off that's happening. I can't wait for them to go back in place, and for the pause to be undone.

Yes starting a trade war with Mexico and Canada is a great idea. Where does Scout get the minerals for battery. Not in South Carolina. You better head back to your TV fox news is on.

 

[J Alynn]

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

A BIG chunk of the volume market can't afford the price of vehicles already. The average car loan term is over five years and negative equity carryover is the highest it has been in years. Raising prices will only make this worse.



Tariffs in the auto industry are complicated due to supply chains and factories in Canada and Mexico. The car industry operates on forecasts 10 years into the future. So you can't say there is a trade agreement with Mexico and Canada one week, and then the next week, it will be 25% more expensive without drastic consequences. This is why some of these tariffs get walked back. If you look at how long it takes us to build a factory and get it up to production speed, you have some idea of how slow the process can be. Not to mention the huge capital expenditure required to do something like that.

It’s not just factory build time but land acquisition or finding empty warehouse space, shipping logistics depending on size of parts and the time needed. Not to get into politics but this is an approach that should be done in first term with planned actions at beginning of second term. This gives companies the time needed to prep for moving back to continental.
Now you want companies to invest BILLIONS to move back and next party moves in and swings things back a different way, kills tax credits, etc… and mean time other industries pucker up and the general public is too afraid to buy anything. Now companies that pushed to build US EVs are now losing EV credits to help sell while building at higher costs and what happens if public does continue to screw Tesla-you think they’ll keep expanding charging infrastructure.
There are too many political games on both sides and until common sense prevails it will just continue to be a tug of war with no real winners.

 

[THil08]

Yes starting a trade war with Mexico and Canada is a great idea. Where does Scout get the minerals for battery. Not in South Carolina. You better head back to your TV fox news is on.

#someonedecidedtogetpolitical

 

[cyure]

It’s not just factory build time but land acquisition or finding empty warehouse space, shipping logistics depending on size of parts and the time needed. Not to get into politics but this is an approach that should be done in first term with planned actions at beginning of second term. This gives companies the time needed to prep for moving back to continental.
Now you want companies to invest BILLIONS to move back and next party moves in and swings things back a different way, kills tax credits, etc… and mean time other industries pucker up and the general public is too afraid to buy anything. Now companies that pushed to build US EVs are now losing EV credits to help sell while building at higher costs and what happens if public does continue to screw Tesla-you think they’ll keep expanding charging infrastructure.
There are too many political games on both sides and until common sense prevails it will just continue to be a tug of war with no real winners.

I agree with the no winners here.

 

[THil08]

It’s not just factory build time but land acquisition or finding empty warehouse space, shipping logistics depending on size of parts and the time needed. Not to get into politics but this is an approach that should be done in first term with planned actions at beginning of second term. This gives companies the time needed to prep for moving back to continental.
Now you want companies to invest BILLIONS to move back and next party moves in and swings things back a different way, kills tax credits, etc… and mean time other industries pucker up and the general public is too afraid to buy anything. Now companies that pushed to build US EVs are now losing EV credits to help sell while building at higher costs and what happens if public does continue to screw Tesla-you think they’ll keep expanding charging infrastructure.
There are too many political games on both sides and until common sense prevails it will just continue to be a tug of war with no real winners.

#COMMONSENSE

Im a full supporter of Common Sense.

I think we should create it. We can call it Common Scout Party.

 

[cyure]

I agree with the no winners here.

Also I am weirdly glad the Scout is years away as my husband and I agreed no big purchases for the foreseeable future unless absolutely necessary.

 

[Jrgunn5150]

Interesting thoughts. But, I think it will take more money and time than you mention. I just looked this up following the top 10 list of manufacturers producing in Mexico mentioned above in the same order... Conicidentially, all of them produced nearly or over 200,000 units in Mexico. That is the planned capacity of the Scout factory.

General Motors (GM): As of December 31, 2024, had $19.9 billion in cash and cash equivalents.
Nissan: September 30, 2024, $9.2 billion USD.
Stellantis: Cash on Hand as of December 2024 : $38.58 Billion USD
Ford: Cash on Hand as of December 2024 : $38.34 Billion USD
VW: Cash on Hand as of September 2024 : $88.23 Billion USD
Hyundai Motors (Kia) as of December 2024: $13.81 Billion USD
Toyota: December 31, 2024 was $87.207 billion USD
Mazda: Dec 2024 $6.15 billion USD
Honda: Cash on Hand as of December 2024 : $33.27 Billion USD
Audi: part of VW

The big picture being overlooked is suppliers.

The Magna's, Denso's, Aisin's, Lear, Adient, Yangfeng...And the tier 2's to them... And the sub tiers to them.

I have parts here where we get components from Mexico, widgets from Canada and the US, mold our part here with a tool built in China, check it on a gage built in China, send it to Canada for further assembly, then it comes back to Detroit for assembly into a Big 3 vehicle.

Where is that part from? How many tariffs got whacked on to it?

Globablization is very very real, and national pride, or American "brands", very very vague.

Supply chains and country's of origin, very very complex, no matter how much some one thinks it's as simple as, "boy, I'll tell you whut"

 

[Jamie@ScoutMotors]

Yes starting a trade war with Mexico and Canada is a great idea. Where does Scout get the minerals for battery. Not in South Carolina. You better head back to your TV fox news is on.

Let's leave the politics and mudslinging out of this please.

 

[dreamweaver]

This looks Interesting "ADD 249 MILES OF RANGE IN JUST 5 MINUTES."

https://insideevs.com/news/753913/byd-ev-one-megawatt-charging/

 

[speedrye]

The average transaction price of a new vehicle is over $49,000 now. People on average are keeping their cars over 12 years now.

I'd be really curious how much of this is driven by small business vs private individuals. I see so many people with small businesses buying the more expensive trucks/vehicles, but I don't see anywhere near as many individuals doing so. Can't blame them, the tax structure promotes it, but I'd be curious how that skews the numbers.

 

[bb00799]

I'd be really curious how much of this is driven by small business vs private individuals. I see so many people with small businesses buying the more expensive trucks/vehicles, but I don't see anywhere near as many individuals doing so. Can't blame them, the tax structure promotes it, but I'd be curious how that skews the numbers.

I think its mostly the private individuals. The amount of people driving around the city I live in with top trim level trucks/suvs is astronomical. I think there is a combination of affordable cars not being made anymore, the "keep up with the Jones's effect", financial illiteracy, and then lastly people buying a TON more car then they need for essentially no reason.

 

[oldgeeksguide]

This looks Interesting "ADD 249 MILES OF RANGE IN JUST 5 MINUTES."

https://insideevs.com/news/753913/byd-ev-one-megawatt-charging/

I’m always a little hesitant with articles like this. They keep talking about the “platform’s” ability, but they don’t really say anything about the batteries. Platform matters in terms of maximum current and voltage, but if the battery can’t handle it, it doesn’t matter. Or if the battery can only handle it for a short period of time, again it doesn’t matter that much. I’d love to see more details.

 

[THil08]

I'd be really curious how much of this is driven by small business vs private individuals. I see so many people with small businesses buying the more expensive trucks/vehicles, but I don't see anywhere near as many individuals doing so. Can't blame them, the tax structure promotes it, but I'd be curious how that skews the numbers.

I agree i also would like to know that, since i have a few family members and friends that own cars new that they bought back in 2000-2004. Now companies they usually lease or buy. So 12 years make some what of sense.

 

[LastDayScout]

This looks Interesting "ADD 249 MILES OF RANGE IN JUST 5 MINUTES."

https://insideevs.com/news/753913/byd-ev-one-megawatt-charging/

That might be faster than filling up with gas! I wish it was someone other than BYD coming up with this stuff.

 

[THil08]

That might be faster than filling up with gas! I wish it was someone other than BYD coming up with this stuff.

Same like an American company or something. Even if it was a company that strictly did Charging R&D.