A possible import tax on foreign vehicles could seriously affect automakers, but some more than others.
A study conducted by Baum & Associates estimates how much vehicle prices from individual automakers would have to increase if President Donald Trump’s big border tax comes into effect. For Jaguar Land Rover, that cost could be more than $17,000 per vehicle, since the automaker imports all of its vehicles. Ford, however, with many of its models built in the U.S., would have the smallest price increase at $282 per vehicle, while General Motors follows at $995.
Naturally, it wouldn’t make a whole lot of sense if Jaguar Land Rover vehicles suddenly became $17,000 more expensive in the U.S. Automakers aren’t likely to increase their prices by more than a few thousand dollars, and would likely absorb some of the tax burden.
The study estimates Volvo would have to raise its prices by about $7,600 on average, while Volkswagen would be $6,800.
The big border tax is under consideration as President Trump continues his campaign of creating more American jobs. Some automakers like Ford have already canceled plans of building factories in neighboring countries, although other automakers like BMW aren’t making a move until something becomes definitive.
[Source: Automotive News]
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