Tag Archives: U.S. market

News

Toyota Doubles Down on U.S. Manufacturing With $10 Billion Boost and New Battery Plant

Toyota’s making big moves in the American heartland—again. The automaker just announced an additional investment of up to $10 billion in the United States over the next five years, bringing its total stateside spend to nearly $60 billion since it set up shop here almost seven decades ago.

But the headline-grabber isn’t just the money—it’s what that money’s charging up. Toyota has officially flipped the switch on Toyota Battery Manufacturing, North Carolina (TBMNC), its first-ever in-house battery production facility outside Japan.

Located in Liberty, North Carolina, the new plant represents a $14 billion commitment and promises to create up to 5,100 new jobs, serving as a cornerstone of Toyota’s expanding EV and hybrid operations in North America. The facility, first announced in 2021, will supply batteries for both hybrid and fully electric vehicles across the company’s U.S. lineup.

“Today’s launch of Toyota’s first U.S. battery plant and additional U.S. investment up to $10 billion marks a pivotal moment in our company’s history,” said Tetsuo Ogawa, president and CEO of Toyota Motor North America. “Toyota is a pioneer in electrified vehicles, and this significant manufacturing investment in the U.S. and North Carolina further solidifies our commitment to team members, customers, dealers, communities, and suppliers.”

For Toyota, it’s not just about keeping up in the EV race—it’s about doing it the Toyota way. The company continues to push its “multi-pathway strategy”, betting on a diverse mix of hybrids, plug-in hybrids, fuel-cell vehicles, and battery EVs instead of a one-size-fits-all electric future. The new facility will give Toyota more control over its supply chain and production pace as it scales those options.

The move also underscores Toyota’s long-term presence in the U.S., where it employs around 50,000 people and has built more than 35 million vehicles across 11 manufacturing plants. TBMNC becomes the eleventh link in that manufacturing chain—a tangible sign of Toyota’s “best-company-in-town” philosophy, which blends local investment with community involvement.

As Toyota charts its course toward a more electrified lineup—without abandoning its hybrid bread and butter—the North Carolina plant represents a literal and symbolic charge forward. Whether that will be enough to keep Toyota ahead in a rapidly changing EV landscape remains to be seen, but one thing’s clear: the automaker is all-in on building its electric future on American soil.

Source: Toyota

News

Tariffs Reshape U.S. Auto Market as Affordable Car Supply Shrinks

In 2016, Donald Trump promised to “Make America Great Again,” a mantra that carried into his economic policies—including his latest move to reimpose sweeping tariffs on foreign-made vehicles and auto parts. The policy, aimed at reshoring auto manufacturing and stimulating U.S. production, is now beginning to show its true impact on the American automotive landscape, particularly in the most price-sensitive segments of the market.

A new study by Cars.com, analyzing dealer inventories in the first half of 2025, reveals that the availability of new vehicles under $30,000—a critical price point for budget-conscious Americans—is already tightening. Although overall new-car inventory has grown by 5.6% year-over-year (YoY), the sub-$30K segment lagged behind at just 3.9%. That gap may seem small, but it points to deeper structural issues.

Imports Bear the Brunt

According to the report, 92% of vehicles priced under $30,000 are imports. Only two nameplates—the Honda Civic and Toyota Corolla—are primarily manufactured in the U.S., and even they have some variants built abroad. This makes the segment highly vulnerable to the new tariffs, which began in April.

To get ahead of the policy, many dealers bulked up their inventories early in the year, prompting a modest 3.9% YoY sales increase in March and April. That preemptive buying also led to an influx of used trade-ins, temporarily softening the used car market. Prices for used vehicles dipped in Q1 2025, but the relief was short-lived—Q2 saw used car prices rebound by 1.6% YoY.

Sticker Shock on the Horizon

Now, as pre-tariff inventory thins out, the study predicts a wave of price hikes. The average new-car price has crept up by a modest $97 so far this year, but that figure masks some sharp regional disparities. Vehicles imported from the U.K. have surged in price by over $10,000, while EU-built cars have climbed by nearly $2,500. Meanwhile, cars from China, Canada, South Korea, and even U.S.-built models have seen slight price drops—around $200 on average.

As we head into the second half of 2025, Cars.com warns that higher prices and reduced demand are likely to define the market. “The pace of sales and inventory movement will depend on the scope of tariffs,” the report notes, adding that manufacturers will likely recalibrate production to match a smaller, more price-sensitive buyer pool.

EV Momentum at Risk

The electric vehicle market is also entering uncertain territory. The study highlights that 53% of EV buyers cited federal tax incentives as a key motivation for purchase. With both the $7,500 credit for new EVs and the $4,000 credit for used EVs scheduled to expire after September, the affordability of EVs is under serious threat.

While new EV inventory has enjoyed 28 consecutive months of growth, that momentum may stall. Used EV prices appear to be bottoming out, which could either signal a buyer’s market or an approaching shake-up in consumer behavior.

Automakers Shift Strategy

In response to all of these pressures, automakers are beginning to adjust their model mix. Production is ramping up for both entry-level and high-end trims, while mid-tier models are seeing slight declines. The logic is straightforward: lower trims appeal to increasingly budget-conscious buyers, while premium trims offer better margins in a volatile environment.

This strategic reshuffle may soften the blow of tariff-related price increases, but it also signals a transformation in how manufacturers are thinking about their customers. The days of the “middle-of-the-road” car might be numbered as the market bifurcates into value and luxury.

Tariffs were intended to reinvigorate American manufacturing, but their ripple effects are already being felt across the entire auto ecosystem—from dealer lots to used car auctions and the EV segment. As the industry adapts to these new dynamics, consumers may have to adjust their expectations too—whether that means paying more for the same car or settling for less at the same price.

One thing is clear: the road ahead for the U.S. auto market in 2025 is anything but smooth.

Source: Cars.com