Join Date: May 2015
Location: Las Vegas, NV
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It doesn't sound good for Mazda. 1/3 of their cars are sold in the US. They made 4.5%. Now a 2.5% levy will reduce the margin to 2.0%. That's a small amount to make while taking a big risk. Either Mazda raises their prices (which will reduce the number of cars sold), cut costs (probably low already), moves production to the US (unlikely due to cost), or only sell vehicles with higher margins.
I'd bet that the Mazda3 is their lowest margin vehicle sold in the US due to it being the lowest priced, most popular, and in the most competitive segment.
My guess is the 3 will have a price increase. Parts will cost more. And the value of used 3's will increase slightly due to stable demand and reduced supply.
I like our president's idea of reduced regulations but a protectionist foreign trade policy doesn't bode well.