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Business
JUAN CARLOS ARANCIBIA

EV Sales Boost Ford, GM As Shoppers Try To Beat Tariffs

Ford Motor sales fell 1% in March on a year-over-year basis, as the automaker discontinued two models. General Motors reported a 17% increase in Q1 sales, as consumers appeared to be hustling to buy before auto tariffs raise car prices.

Stellantis, the Netherlands-based owner of Jeep, Ram, Chrysler, Dodge and Fiat auto brands reported early Wednesday its overall sales declined continued in Q1. However, Ram and Jeep vehicles showed some signs of sales strength, and overall sales minus the impact of discontinued models rose 13.8%.

On Tuesday, Ford reported the timing of sales to rental companies also contributed to the company's sales drop in March. Ford's retail sales (which exclude fleet sales) rose 10% in March, and 5% in the first quarter.

The company's popular F-series pickup trucks saw a first-quarter increase of 24% to 190,389 trucks. Including the smaller Ranger and Maverick models, Ford's total pickup sales climbed to 243,317 in the first quarter.

Hybrid, plug-in hybrid and electric vehicle sales jumped 26% in Q1 over the year-ago period. Combined with conventional-engine models, Ford called it its best Q1 pickup sales in more than 20 years.

Ford stock was little changed Tuesday at midday and is up less than 1% year to date. Shares traded slightly lower ahead of Wednesday's open.

Shares have been mired in a downtrend since 2022.

GM Sales Best Since 2018

General Motors' U.S. sales rose 17% in the first quarter to 693,363 vehicles. It was its best Q1 since 2018, the company said as all four brands saw double-digit increases.

The automaker's EV sales also improved, up 94% in the first quarter. "We expect GM to be again the #2 seller (of) electric vehicles in the U.S.," Rory Harvey, GM executive VP and president of global markets, said in the sales report.

Chevrolet sales were up 14%, with the best first quarter since 2019. Chevy is the fastest-growing EV brand in the U.S., led by Equinox EV and Blazer EV. Cadillac EVs rose 37%.

"GM's sales growth outpaced every other major automaker, and the driving force is our portfolio," Harvey added.

GM stock climbed 1.2% Tuesday, but remained below the 50-day and 200-day moving averages. Shares dipped modestly early Wednesday.

GM stock — down about 11% year to date — is forming a cup base, according to IBD MarketSurge pattern recognition.

Stellantis Takes Market Share

Stellantis reported a drop of 12% in its total sales for the first quarter, but said it had nonetheless managed to increases its share of the market.

"We've seen consecutive monthly market share growth since January," according to Jeff Kommor, head of U.S. sales, in a release, citing a strategic mix of incentives and price cuts.

Both Ram and Jeep posted their best retail sales of the 12-month period in March. And Kommor said new models were expected to help plug the gap in U.S. sales.

Shares of Stellantis shed 1% Wednesday morning. The stock is down 62% from a March 2024 high.

Tesla Sales Undercut Views

Tesla  reported Wednesday it had delivered 336,681 vehicles in the first quarter. That was below analyst views and the company's worst quarter in more than two years. On Tuesday, it reported its March sales in France tumbled 37% year over year to 3,157 cars. For the full quarter, Tesla sold about 7,000 vehicles, a 41% year-over-year tumble.

Analysts are expecting the lowest quarterly performance in more than two years as CEO Elon Musk faces a backlash over his work to slash federal spending under President Donald Trump.

Tesla stock parted early gains to end 1.9% higher Tuesday, but remained below the 200-day moving average. Shares were down more than 2% in Wednesday's early trade, and are off more than 30% year to date.

Consumers Buying Ahead Of Auto Tariffs

The reports came as automakers brace for the start of import auto tariffs set to go into effect Wednesday. Although designed to protect U.S. automakers, analysts believe tariffs will add thousands to the cost of all cars sold in the U.S.

Research firms J.D. Power and GlobalData estimate new-vehicle sales will increase 9.6% in March vs. the year-ago period, despite that last month had one less selling day than March 2024. Including retail and nonretail transactions, total U.S. sales are projected to reach 1,525,200.

Thomas King, president of the data and analytics division of J.D. Power, said March sales should reflect robust consumer demand for new vehicles. But much of the expected 13% jump in retail sales is from consumers trying to get ahead of auto tariff-related price increases.

"While the tariff situation remains both fluid and uncertain, the prospect of tariffs is already beginning to affect the industry," Thomas said in a report. "In addition to the boost in March sales, anticipated increases in manufacturer and dealer discounts have not materialized, even as inventory on dealer lots rises. Although the magnitude of these effects is currently modest, they do present a preview of potential disruption as manufacturers, dealers and consumers prepare for uncertainty in the coming weeks and months."

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