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Car Talk: EVs, Tariffs, Supply Chain, and Trends
Local dealerships answer our top car industry questions
By Ross Boissoneau | Feb. 22, 2025
Black or blue? Car or truck? Combustion engine or electric? Or maybe hybrid?
Welcome to the ever-changing world of automobiles. What’s hot one year is passé the next, and what’s anticipated to be the next big thing may suddenly take a U-turn. For example, who a decade ago foresaw the degree to which driverless or hands-free cars would be on our roads?
Is The Future Electric?
A couple years ago, electric cars were on everybody’s lips and lots, but now sales for Tesla, the one-time industry leader, are plummeting. According to the industry publication Inside EVs, full-year and January sales results from various markets around the world indicate a bleak picture for the Elon Musk-led electric vehicle company. Data from the California New Car Dealers Association said the entirety of the decrease in its market last year was attributable to Tesla, which had an 11.6 percent decline.
Jason Roussin of Dave Kring Chevrolet in Petoskey says sales of electric vehicles in this market are not down so much as still slow. “In northern Michigan it’s tough to say; only about one percent [of sales] are electric vehicles right now.”
He attributes that in part to the rural nature of the region, noting that EVs make more sense in markets with short commutes. He says that in Grand Rapids, for example, you have lots of destinations within a 20-minute drive, while in this region you might drive from Petoskey to Traverse City, or Alpena to the Upper Peninsula.
“I don’t think we’re quite there yet,” agrees Mike Herczak at Watson Benzie Chrysler Dodge Jeep Ram. He is of the opinion that the fact that EVs cannot drive for long distances without charging and the length of time it takes to recharge one—anywhere from 30 minutes to several hours, depending on the model and the charger—make them less desirable here. “We have some Fiats here with a range of 150 miles. If you live on Crystal Lake and are only here in the summer and you want a clean vehicle to drive to Traverse City and back,” he says they are a good option.
Is a change on the horizon? Perhaps. Forbes reports that the next generation of batteries will outlast the cars they power, retaining higher residual value than the vehicles at the end of their lifecycle. Driven largely by advancements in battery technology, both in terms of longevity and reduced battery prices, Forbes goes so far as to say EVs are still projected to surpass internal combustion engine (ICE) vehicles by 2036.
In the meantime, Herczak says hybrids may have the upper hand, combining some of the energy efficiency of electric vehicles but obviating the need for lengthy charging sessions. “When they’re braking, they’re recharging the battery,” he says.
Will Trump Tariffs Affect Prices?
One daunting challenge ahead is the impact of President Trump’s tariffs. According to CNBC, Ford Motor CEO Jim Farley says they are causing chaos for the U.S. automotive industry. The order Trump signed Feb. 10 will impose 25 percent tariffs on steel and aluminum imports beginning March 4. (The proposed tariffs on all goods from Mexico and Canada are on pause as of this writing.)
“President Trump has talked a lot about making our U.S. auto industry stronger,” Farley said during a Wolfe Research conference. While he said that would be a signature accomplishment, the pain in the meantime will be significant. “So far what we’re seeing is a lot of cost, and a lot of chaos,” he said.
Auto industry vehicle valuation and automotive research company Kelly Blue Book (KBB) says new car prices would immediately increase as tariffs are enacted. The end result will almost inevitably be an overall decrease in sales as prices go up.
“It will make it [buying a car] more expensive,” agrees Roussin. He says car sales at his dealership are almost evenly split between new and used vehicles; that could tip in favor of pre-owned cars and trucks in the short term should new car prices suddenly increase.
How’s the Supply Chain?
Cars may become more expensive, but they will still be easier to get than in years past. Herczak says the delays caused by backups in the supply chain during the pandemic have largely dissipated.
“There’s no longer a car shortage,” he says, noting ordering a new car to your specifications can take five to eight weeks. “It could have been five or six months.”
That wasn’t the only impact from the pandemic. “Lease programs got set back,” says Herczak.
He says as people now come out of leases, they are faced with much greater expense. “They go to get a new [car] and it’s a couple hundred dollars more” per month.
What’s Trending?
Industry-wide, SUVs have overtaken sedans to such a degree a number of manufacturers have backed off sedans completely. Ford, Chevrolet, Nissan, and Volkswagen are among those to have abandoned sedans due to declining demand.
Roussin says that locally, trucks continue to gain in popularity. “Most popular in northern Michigan is the Silverado [Chevy’s signature truck] and SUV crossovers,” he says. “It used to be 60/40 for trucks, but now SUVs are [gaining].”
That fits what Herczak is seeing. “Wrangler’s [Jeep’s longtime flagship model] always been one of the most popular vehicles made, especially here in northern Michigan,” he says. “It’s a good everyday drive, and a toy when you want it.”
As for color? KBB says white is the most popular color choice for car buying, and claims it’s the safest. Industry mainstays are neutral colors, including silver, gray, and black along with white.
Roussin and Herczak agree with that assessment. “Grays, especially cypress gray,” says Roussin.
“It’s the base colors,” says Herczak. “Black, silver, white. We’ve had those colors forever.”
Last but not least, cars are getting more advanced. What were once pricey add-on features are now often part and parcel of vehicle equipment. That’s particularly true of safety features, such as assisted braking, sensors and forward collision avoidance, which Herczak says “are all standard. You can always replace a vehicle. Safety is huge.”
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