25% auto tariffs coming April 2, Hyundai commits $21B U.S. investment, auto loan fraud hits record high

Hey, everyone. PSA (!)

This Monday at 1 p.m. EST—I will be holding an emergency live panel about auto tariffs with top dealers and industry insiders.

Find out what’s coming. What it means. What it could trigger.

RSVP here to attend on X.

— CDG

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. White House adds clarity to President Trump’s 25% auto tariff announcement

The auto industry is bracing for impact after President Trump announced a 25% tariff on imported vehicles and parts, set to take effect April 2.

What it means: Automakers are expected to adjust their pricing strategies, and analysts say both new and used vehicle prices may rise—though how much will vary by brand and model.

The move is intended to boost U.S. manufacturing—but in the near term—consumers could see fewer incentives and higher transaction prices, particularly on entry-level vehicles.

(Go deeper: 4 min. read)

However—some automakers like Hyundai are taking a proactive approach to mitigate future long-term impacts…

2. Hyundai pledges $21B investment for U.S. expansion

Hyundai is making a massive bet on U.S. manufacturing by committing $21 billion through 2028 to expand its presence across steel, vehicle production, and future tech.

The plan includes a $6 billion new steel plant in Louisiana, major vehicle capacity expansion, and funding for EV infrastructure and autonomous research.

At a White House event, President Trump pointed to the investment as proof his tariff strategy is working.

(Go deeper: 1 min. read)

But the new auto tariffs are also facing some sharp criticism around the globe…

3. President Trump’s auto tariffs spark global backlash

Government officials from Canada, Mexico, Japan, and the EU warned tariffs will cause costs to rise, strain trade ties, and bring about possible retaliation.

However—some governments are seeking exemptions or reduced rates.

But not everyone’s opposed: the UAW union is backing the move, calling it a step toward rebuilding U.S. auto jobs and fixing decades-old trade imbalances.

(Go deeper: 5 min. read)

Still—tariffs aren’t the only pressure-point affecting the automotive industry…

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4. Auto loan fraud tops $9 billion in 2024

Auto lending fraud in 2024 was up a staggering 16.5% from 2023—and it’s dealers who are increasingly caught in the crosshairs.

• Most of the damage is no longer from stolen identities, but from real buyers lying about their income or employment to get approved.

• This kind of first-party fraud now makes up nearly three-quarters of lender losses—and many of these deals begin on the showroom floor.

Bottom line: As financial pressure mounts and AI tools make deception easier, fraud is getting harder to detect—and even harder for dealers to avoid.

(Go deeper: 3 min. read)

But while dealers are busy blocking fake buyers, too many real ones are slipping through the cracks…

5. Website leads are pouring in, but dealerships aren’t keeping up—report

A new report from Foureyes shows dealers aren’t losing sales from a lack of leads—they’re losing them from not following up.

Nearly half of all website leads last year were mishandled, including calls, forms, and chats—and over 14% weren’t logged into CRMs at all.

On top of that—65% of dealers take more than 24 hours to respond to consumers who visit their websites more than once—giving other dealerships the perfect opportunity to close the deal first.

(Go deeper: 1 min. read)

'Used car market about to go berserk': Car Dealership Guy CEO reacts to auto tariffs

Stream now on Youtube

Three opportunities hitting the CDG Job Board right now:

• Magic City Auto Group: General Sales Manager (Virginia)

• Veros Credit: Regional Sales Managers (nationwide)

• Foureyes: Creative Content Designer (remote)

Looking to hire? Add your roles today—it’s 100% free.

• Nissan bets big on product overhaul to regain ground

• Rivian spins off micromobility unit as it doubles down on core EVs

• M&A update: Smaller dealers move in as dealership valuations finally cool off

• GM blocks dealers from using Apple CarPlay, Android Auto aftermarket kits

• Auto insurance affordability takes a hit—but still better than the 2000s.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

Thanks for reading. Hit reply and let me know if you found The Weekly valuable or have any feedback. I’ll see you next weekend.

— CDG

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