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May 2025 U.S. new-vehicle sales, scheduled to be reported early next week, are expected to show a slower sales level from March and April’s tariff-inspired buying surge, according to the Cox Automotive forecast released today. The May seasonally adjusted annual rate (SAAR), or sales rate, is forecast by Cox Automotive* at ~16.0 million, up slightly from last May’s 15.8 million level. However, this represents a significant decline from March’s 17.8 million and April’s 17.3 million pace. Sales volume in May is expected to rise 3.2% from last year and 2.5% from last month. This month’s gains, however, are overstated because May has one more selling day than last year or last month.
“The vehicle market has been particularly strong since new tariff announcements in March, as many vehicle shoppers who were considering buying this year decided to pull ahead their purchase, before higher prices hit the market,” said Charlie Chesbrough, senior economist at Cox Automotive. “However, much of that pull-ahead demand has now been satiated, so consumer demand is expected to fall this month.” Continue reading
GM to Invest $888M in V8 Gas Engines
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General Motors (NYSE: GM) said Tuesday that it plans to invest $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of GM’s V8 engines, used in full-size trucks and SUVs. The money is for new machinery, equipment, and tools, as well as facility renovations. GM makes money – thousands up thousand of U.S. Dollars a unit – on selling full-size pickup trucks and SUVs with fossil fueled engines. This a prudent move that will help offset the significant costs incurred during the slow walk to non-fossil fueled propulsion systems.
“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” said Mary Barra, Chair and CEO. “GM’s Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come.” Continue reading →