With tariffs and economic uncertainty weighing on the automotive industry, dealers are navigating a fast-changing landscape. Tom Maoli, president and CEO of Celebrity Motor Car, joins us on the latest episode of Inside Automotive to discuss how the tariffs are affecting sales, why he believes the EV market is struggling, and what concerns him most as 2025 unfolds.
Maoli reports that business at his dealerships remains strong, with consumers rushing to buy vehicles ahead of potential tariff increases. He noted that buyers are motivated by the possibility of saving up to 25% before the anticipated April 2nd deadline. However, he cautioned that if tariffs are implemented, they will impact not just the automotive sector but the broader economy.
A close associate of President Trump, Maoli urged reconsideration of the tariff strategy, advocating instead for tax incentives to encourage U.S. manufacturing. While he acknowledged the recent $21 billion investment from Hyundai as a positive sign, he questioned the long-term costs of domestic vehicle production. He also pointed to reports that the Trump administration may exclude auto-specific tariffs, a move he strongly supports.
Beyond tariffs, Maoli raised concerns about the state-level regulations still enforcing EV mandates despite the federal government rolling back national requirements. He argued that the push for EV adoption has proven unsustainable, citing Tesla and Rivian’s stock declines as evidence. According to Maoli, many dealers and manufacturers have made significant investments in EV infrastructure, but returns are uncertain, and some businesses may face financial losses.
He also highlighted the affordability crisis facing middle-class consumers, particularly in brands like Ford and Chrysler. With rising repair costs, many customers are turning to independent shops that source parts from China, which Maoli warns could lead to quality and safety concerns. Additionally, he emphasized the importance of keeping inventory levels low to maintain supply-and-demand balance and avoid market saturation.
Looking ahead, Maoli remains bullish on the franchise dealership model, noting that the buy-sell market is “insane” as public dealership groups aggressively acquire stores. While he regularly receives buyout offers, he affirmed his focus on expansion, not selling. His primary concern remains regulatory challenges, particularly carbon and California-style emissions laws at the state level, which he hopes to see repealed.
"People need vehicles. They’re going to buy. They’re going to fix. If they’re not buying, they’re fixing. If they’re not fixing, they’re buying. So I think the market will stay strong." – Tom Maoli
