WELCOME TO THE SHIT SHOW.

Editor's Note: This week, Peter details the ugly reality of the tariffs on the auto industry, as the Shit Show unfolds before our very eyes - with no relief in sight. In On The Table, we take a look the the thoroughly reimagined cabin for the entire 2026 Corvette lineup. Our AE Song of the Week is "Living In America" as performed by James Brown, written by Charlie Midnight and Dan Hartman. In Fumes, we have the next installment of Peter's riveting new series, The Great Races, which this week focuses on the impact of the original Trans-Am series. And in The Line, we'll have results for INDYCAR at the Indianapolis Motor Speedway road course, MotoGP from Le Mans, France, and IMSA from Laguna Secca. Enjoy! -WG

 

By Peter M. DeLorenzo

 

Detroit. Now that the auto industry is officially teetering on the Abyss thanks to a two-steps forward, five-back dance filled with reactionary missteps and endless rumbling, bumbling and stumbling in and around Trump’s arbitrary tariffs, the rest of the year is shaping up to be a Shit Show of monumental proportions.

 

The first wave of effects from those tariffs has already hit, with Ford announcing that prices for its Mexico-sourced Maverick pickup, Bronco Sport and Mustang Mach-E EV crossover will increase as much as $2,000. Again, this is just the first wave from one manufacturer. The price increases will grow exponentially in the coming months, as manufacturers are forced, basically at gunpoint, to pass the price increases on to consumers.

 

Suppliers are scrambling as well, trying to anticipate and plan when it’s simply impossible to do so because economic “planning” by the government hinges on the pathetically capricious whims of one man. The initial reaction of these suppliers? Layoffs of their workers, and lots of ‘em. On this subject, an interesting headline in this week’s Automotive News: “Suppliers hope automakers put volume ahead of profits as they manage tariff costs.” As if.

 

Which is again a reminder why it was so laughable when those “Kings of the Short-Term Thinkers” – the UAW – wholeheartedly endorsed the Dear Leader’s tariffs. And even though no one would accuse the overlords of the UAW of visionary thinking, these tariffs threaten to decimate its membership for the foreseeable future. If you listen closely, you can hear the grumbling starting to emanate from the minions at Solidarity House, as in, “WTF? Why is this happening? He promised!” Yeah, whatever. Yet again, it sucks real bad to be you.

 

But that’s just the tip of the proverbial iceberg. Yes, the cost of vehicles and cost of auto parts will skyrocket, that has already been well-established, but few are talking about how these tariffs will hit the auto repair component of this industry. There has already been a lingering industry-wide shortage of auto repair parts (especially on the domestic side), but now, that shortage will not only grow more precarious by the day, the cost of these parts will increase dramatically. This is a huge deal, as anyone who has had to have body repair work done in recent months knows, because the costs are crushing as is. Now? It will get much worse.

 

Speaking of doing business at gunpoint, one manufacturer in particular, which perpetually has its back to the wall, is striking out the only way it knows how. Nissan, ever the forlorn company in constant freefall, has decided to basically hold its dealers to a new standard: A “shut up and sell” program that pays $350 per new vehicle sold to dealerships that achieve 90 percent of their target, $600 for 100 percent and $1,200 for at least 110 percent, “The Nissan One” program will begin June 3. “What matters most is achieving better sales — more Nissans in consumer driveways,” U.S. marketing and sales chief Vinay Shahani told Automotive News. I’d say that this qualifies as the “Duh of the Year” so far, but the ugly reality for Nissan is that this new churn-and-burn strategy is based upon consumers actually wanting to buy a Nissan in the first place, which is a dubious proposition, at best.

 

Oh, and the trade “deal” with the UK? When you look at the usual smokescreen generated by the Oval Office, you would think that this was some sort of monumental achievement. Well, guess what? Not surprisingly, it isn’t. In fact, the substance of the “deal” is a “framework” missing in action. And it negatively impacts U.S. automakers in a big way.

(As for China and the recent "deal" announced overnight Sunday? There's no deal, they just agreed to talk for another 90 days. This is "negotiation" in drips and drabs and it's a complete joke. It may lower tensions somewhat in the trade war but it does little to change the fact that Beijing and Washington are not going to see eye-to-eye on anything.)

 

Back to the subject at hand, in case you were wondering, unless and until there is a meaningful, substantive agreement that doesn’t penalize U.S. automakers for their vehicle and parts infrastructures in Canada and Mexico, then this business will be nothing but grim for as far as you can see ahead.

 

And planning? Forgetaboutit.

 

As I’ve said before – and I will probably say it many times again – the collective “Detroit” including and especially the auto company CEOs were incredibly naïve to think that the current occupant of the Oval Office would be rational and could be reasoned with. That is nevergonnahappendotcom.

 

As one of my Internet critics, who took great umbrage with last week’s column, said, “Oh please, let the man work!” And all I have to say about that comment (after spitting out my coffee) is: You’re talking about a guy who has never worked a day in his life. And frankly, I’ve seen enough of his “work” to ruin a lifetime.

 

So now, here we are, the automakers and their suppliers – along with those staggering UAW members saddled with a woeful dollop of buyer’s remorse – are being held at gunpoint by a Dictator-in-Chief who not only doesn’t have the first clue about this business but who simply doesn’t give a shit about what this industry means to this region and to the country overall.

 

Welcome to the Shit Show, folks. It's going to be a long, aggravating summer.

 

And that’s the High-Octane Truth for this week.

Editor's Note: Click on "Next 1 Entries" at the bottom of this page to see previous issues. - WG