Automotive leaders discuss tariffs during summit
Automotive leaders discussed the impact tariffs and other economic factors could have on vehicles during the annual South Carolina Automotive Summit in Greenville. Lenny LaRocca, the U.S. auto leader for KPMG, said tariffs on aluminum and steel could increase the cost of vehicles. “Tariffs will absolutely increase the cost, and if a 25% tariff, just at a super high level, would impact the cost of the vehicle by about $1,000,” LaRocca said. Multiple speakers discussed tariffs and other economic factors at the summit at the Hyatt Regency in downtown Greenville. LaRocca said suppliers and manufacturers are assessing how the tariffs could impact their businesses.”The OEMs are going to have to assess how to manage that,” LaRocca said. “Whether it’s working with their suppliers, coming up with ways of addressing the increase in cost, and we’ll really have to assess what they could really do to maintain profitability.”Speakers included South Carolina Transportation Secretary Justin Powell, Secretary of Commerce Harry Lightsey and Gov. Henry McMaster. LaRocca said the average selling price of a new vehicle is around $50,000. “It’s an all-time high cost of buying a new vehicle,” he said. “I think the consumers are taking a step back, trying to see if they do really want to make an investment in a $50,000 vehicle.”LaRocca said companies have invested around $300 billion into the production and supply of electric vehicles in the U.S. so far. “If they’re going to spend money and different things, they really need to have certainty before they make those investments,” he said. “That uncertainty right now is really driving a lot of disruption in the space.”He further explained how the tariffs could impact those investments. “The volumes just aren’t meeting the expectations,” LaRocca said. “They have to figure out, ‘What actions can I take to delay? What actions do I need to take to invest those dollars in other areas?'”The South Carolina Manufacturers Alliance said more than 500 manufacturers work in the state’s automotive sector. “Workforce continues to be a challenge to find ready, skilled and available workers,” President and CEO Sara Hazzard said. “We’re working really hard to make sure that young people and their parents and guidance counselors and teachers know about the tremendous job opportunities that are in manufacturing.”
Automotive leaders discussed the impact tariffs and other economic factors could have on vehicles during the annual South Carolina Automotive Summit in Greenville.
Lenny LaRocca, the U.S. auto leader for KPMG, said tariffs on aluminum and steel could increase the cost of vehicles.
“Tariffs will absolutely increase the cost, and if a 25% tariff, just at a super high level, would impact the cost of the vehicle by about $1,000,” LaRocca said.
Multiple speakers discussed tariffs and other economic factors at the summit at the Hyatt Regency in downtown Greenville. LaRocca said suppliers and manufacturers are assessing how the tariffs could impact their businesses.
“The OEMs are going to have to assess how to manage that,” LaRocca said. “Whether it’s working with their suppliers, coming up with ways of addressing the increase in cost, and we’ll really have to assess what they could really do to maintain profitability.”
Speakers included South Carolina Transportation Secretary Justin Powell, Secretary of Commerce Harry Lightsey and Gov. Henry McMaster.
LaRocca said the average selling price of a new vehicle is around $50,000.
“It’s an all-time high cost of buying a new vehicle,” he said. “I think the consumers are taking a step back, trying to see if they do really want to make an investment in a $50,000 vehicle.”
LaRocca said companies have invested around $300 billion into the production and supply of electric vehicles in the U.S. so far.
“If they’re going to spend money and different things, they really need to have certainty before they make those investments,” he said. “That uncertainty right now is really driving a lot of disruption in the space.”
He further explained how the tariffs could impact those investments.
“The volumes just aren’t meeting the expectations,” LaRocca said. “They have to figure out, ‘What actions can I take to delay? What actions do I need to take to invest those dollars in other areas?'”
The South Carolina Manufacturers Alliance said more than 500 manufacturers work in the state’s automotive sector.
“Workforce continues to be a challenge to find ready, skilled and available workers,” President and CEO Sara Hazzard said. “We’re working really hard to make sure that young people and their parents and guidance counselors and teachers know about the tremendous job opportunities that are in manufacturing.”
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