Honda posted a 5% rise in its third-quarter profit, according to Reuters reports from February 13, 2025, as a growing gap between latest and used car prices reshapes the automotive market.
The increasing cost of new vehicles is driving consumers toward used car lots, a trend highlighted by Edmunds data. The average price difference between new and used cars has widened, prompting many potential new car buyers to reconsider their options. This shift comes as several automakers grapple with sales declines and production adjustments.
Mercedes-Benz car sales dropped in January 2025, attributed to a slump in both China and electric vehicle demand, Bloomberg reported. Volkswagen brand deliveries too fell by 1.4% in 2024, according to Reuters. Stellantis, although, achieved its goal of reducing US inventory by 100,000 units in January 2025.
Supply chain issues and software delays have impacted the rollout of new electric vehicles. New Jeep and Dodge EVs experienced delays before reaching dealerships in January 2025, Reuters reported. Meanwhile, Honda is showcasing US-made EVs whereas simultaneously evaluating potential slowdowns in investment, according to Bloomberg.
The automotive industry is also facing external pressures. Former President Trump’s threats of new tariffs are causing auto suppliers to reassess their production plans, Reuters reported in January 2025. Volvo Cars experienced a 5% decline in January sales, though its electric vehicle sales increased, Reuters noted.
The National Highway Traffic Safety Administration (NHTSA) initiated a preliminary probe into more than 870,000 General Motors vehicles in January 2025. The National Automobile Dealers Association (NADA) is hosting its annual NADA Show in Las Vegas from February 3-6, 2026.
Volkswagen board members are pushing for further cost cuts, Handelsblatt reported on January 30, 2025. Volvo Cars reported a 3% sales decrease in December 2024, while electric vehicle sales rose, according to Reuters.
