Hyundai pledged to hold prices steady until June 2. (Hyundai)
Jeep maker Stellantis NV is offering fresh discounts across its brands while Hyundai Motor Co. pledged to hold prices steady until June 2 in a bid to ease fears that President Donald Trump’s tariffs will make cars much more expensive.
Hyundai’s commitment also applies to its Genesis luxury brand, the South Korean carmaker said April 4.
Separately, Stellantis will offer its customers pricing normally reserved for employees, according to people familiar with the marketing plan. The promotion applies across the automaker’s lineup, which includes Ram, Dodge and Chrysler vehicles, except for a few specialty models and trims. The company confirmed the discounts in an emailed statement.
The pricing actions show how some of the largest carmakers are trying to calm worries that the president’s 25% tariff on imported cars will drive up prices by thousands of dollars. New cars that cost nearly $50,000 on average have already become out of reach for many Americans, especially with high interest rates.
Stellantis’ promotional discounts offer customers the same pricing normally reserved for employees. (David Paul Morris/Bloomberg)
“We know consumers are uncertain about the potential for rising prices and we want to provide them with some stability in the coming months,” Hyundai CEO Jose Munoz said in a statement.
Ford Motor Co. announced a similar discount program April 3. The levies are expected to upend supply chains and add thousands of dollars in costs to most vehicle models.
The actions could put pressure on other automakers to follow suit, potentially squeezing profit margins at the same time the industry is grappling with tariff costs, regulatory changes and uncertain demand for electric vehicles.
Stellantis’ offer allows shoppers to choose between the employee discount price or cash incentives on a price negotiated with the dealer. This gives flexibility to consumers who may prefer cash when the trade-in value of their old car is less than the debt they owe on it, one of the people said.
The Stellantis discounts, which were reported earlier by the Wall Street Journal, are just one of several actions the carmaker has taken in recent days to adapt to the uncertainty created by Trump’s trade war. On April 3, the automaker announced it would idle assembly, powertrain and stamping plants across the U.S., Canada and Mexico, temporarily laying off 900 people.
Stellantis is battling to regain market share after first-quarter U.S. sales fell 12%, the seventh consecutive decline. Former CEO Carlos Tavares had raised prices while aggressively cutting costs and leaving key holes in the model lineup. The company has said a raft of new models in the second half of the year, including an extended-range electric Ram pickup, should bolster volumes.
Stellantis shares fell 5.7% at 1:27 p.m. in New York, trading at the lowest since July 2020, amid broad market declines. The stock has fallen 25% so far this year.
