Welcome to the Dec. 19 edition of the Daily 5.
Tarriff talks among import brands are making headlines lately, and Subaru is no exception. The automaker, warning of a possibly "huge impact" from tariffs, is shoring up its defenses with options including ramping up U.S. production or even adding electric vehicle assembly. Subaru wants to see an increase in U.S. market share to 5 percent, from the roughly 4.2 percent it has today. CEO Atsushi Osaki said he wants to maintain Subaru's red-hot sales momentum even in the face of impending policy upheaval under the administration of President-elect Donald Trump. Subaru is on pace to notch U.S. sales of nearly 670,000 vehicles this year, a 6 percent increase over 2023.
"First, we hope to achieve a big target of 5 percent market share in the U.S.," Osaki said during a Dec. 18 roundtable with reporters at Subaru Corp.'s global headquarters in Tokyo. "If the overall demand is 16 million units, 5 percent is 800,000 units. So, that is a big target for us."
It's been a grim decade for cars, as American consumers have largely abandoned coupes and sedans in favor of SUVs and crossovers. But in the wake of the COVID-19 pandemic and microchip shortage, when new-vehicle prices soared to record highs, some consumers rediscovered cars out of necessity. Nowhere is that more visible than in the compact car market, and as affordability continues to weigh on the market, Kia aims to cash in with the 2025 compact K4, a new sedan replacing the Forte, priced from $23,145 including shipping, and taking on the segment's heavyweights, the Toyota Corolla and Honda Civic. With U.S. sales up 12 percent this year through November, the Forte/K4 are also on track to help Kia set another U.S. sales record in 2024.
Many consumers looking for inexpensive wheels have turned to used cars, and indeed CarMax Inc. said it recorded higher used-vehicle retail sales in its fiscal third quarter ended Nov. 30 compared with the same time last year. Net income rose by double digits, up 53 percent from its third quarter a year ago with net revenue up 1.2 percent from the same time last year. Sales rose 5.4 percent from Q3 2023.
And finally, please don't miss our stories on former Detroit Piston Vinnie Johnson's latest Piston Group feud, and Ram postponing its electric pickup until 2026.
That's it for today. Enjoy the rest of your day!
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Wes Raynal, assistant web editor
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