Cody Lusk, President, and CEO of the American International Automobile Dealers Association joins CBT Automotive Network to talk about the on-going trade war with the U.S., Mexico, Canada, and the EU and how it will affect automotive dealers, manufacturers, and the American economy.
When CBT News last spoke with Cody Lusk, the auto industry was waiting in balance regarding the future of aluminum and steel imports and whether or not a tariff trade war was going to turn auto dealers and the American economy on their heads.
There are a lot of moving parts taking shape these days and it is safe to say things are heating up and not necessarily for the good. Just this past weekend industry leaders have been keeping an eye on a number of topics that not only includes steel and aluminum tariffs but also the 301 with China, and the pending U.S. Department of Commerce Initiates Section 232 investigation of auto imports with herrings commencing in the coming days.
With all of these matters on dealer’s radars, Lusk shares more on what dealerships need to know, worry about, and how to prepare or support an outcome.
According to Lusk, a broad-based implementation of tariffs on auto imports could potentially force the cost of cars up thousands of dollars thus causing devastation across the automotive sector. Lusk explains to Jim, “a 20% to 25% tariff would be devastating for the auto sector, you’re talking about pricing going up as much as $6,600 for the average car, we’re also talking about a market that is flattening, floor-plan cost going up for dealers, auto parts increasing… it would be a massive disruption to the auto sector and will have very negative consequences for the American consumer and, we believe the American economy”.
To watch and learn more on this topic from Cody Lusk watch the full video above.