Welcome to the Daily 5 report for Wednesday, May 21.
The latest Cox Automotive Dealer Sentiment Index generated some eyebrow-raising responses about tariffs from U.S. dealers. No question, buoyant U.S. auto sales in March and April partially stemmed from consumers shopping showrooms ahead of anticipated price hikes from tariffs.
Now comes the hard part for dealerships trying to sell vehicles with tariff markups.
According to our story by John Huetter, 40 percent of franchised dealers surveyed by Cox Automotive from April 22 to May 5 said tariffs were hurting their business during the second quarter — up from 2 percent a year earlier and 9 percent from the first quarter.
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Cox Automotive Chief Economist Jonathan Smoke said tariffs have begun to impact dealership operations. Retailers restocking imported inventory are buying models and replacement parts that are subject to tariffs, he said in our story.
"It is absolutely clear that dealers believe that tariffs are not good for the marketplace," he said, noting invoice prices are up 2.5 percent.
One related issue: Some dealers also might have been reacting not to higher-priced inventory but a lack of vehicles to sell, Smoke said, pointing to automakers that stopped shipments after tariffs were announced.
Meanwhile, Toyota Motor Corp. churned out a plethora of news overnight, most of it related to the next-generation RAV4 crossover and its game-changing software operating system called Arene.
But another report signaled Toyota is poised to take on Ford Motor Co.'s Maverick and Hyundai Motor Co.'s Santa Cruz in the small pickup market. Of course, few details are available on the plans. But Toyota executives told Bloomberg they are listening to U.S. dealer requests for a pickup smaller than the brand's bestselling midsize Tacoma and full-size Tundra.
Finally, some of the auto industry's top female executives spoke about mentorship during the 2025 Automotive News 100 Leading Women conference near Detroit. Leaders might even learn from a person who just came into the organization — what Brenda Mejia, head of operations at Gatik, called reverse mentorship. Conversations about merging old and new ways of thinking need to happen, Mejia said.
That's it for now. Have a great rest of your day. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
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