Mar 06 2025 16 mins
The auto industry breathed a sigh of relief yesterday as it was announced that they will be exempt from the 25% tariffs on Mexican and Canadian goods. Plus, we’re looking at the cars that hold their value the best, and Google’s push towards AI search.
Show Notes with links:
- The auto industry is temporarily relieved by a one-month exemption from the 25% tariffs on vehicles covered by the United States-Mexico-Canada Agreement (USMCA). President Trump granted the reprieve following requests from Ford, GM, and Stellantis, with the ultimate goal of shifting production to the U.S.
- The automotive provisions of the USMCA require that 75% of a vehicle's components be made in North America (up from 62.5% under NAFTA) to qualify for zero tariffs, and mandate that 40-45% of auto parts be made by workers earning at least $16 per hour, aiming to boost North American production and labor standards.
- Most automotive manufacturers comply with USMCA standards and The American Automotive Policy Council and automakers expressed gratitude for the temporary exemption.
- Suppliers remain concerned about long-term impacts, despite positive signs for USMCA-compliant parts.
- Dealers and industry experts view the exemption as part of a broader strategy to encourage domestic manufacturing, but uncertainty persists.
- “The damage has already been done. For an industry that operates in three- to five-year product cycles, this level of day-to-day uncertainty is debilitating.” — Glenn Stevens, Executive Director of MichAuto.
- Last week we covered the cars with the most depreciation, and now, Kelley Blue Book has announced its annual Best Resale Value Awards, highlighting the top performers of 2025.
- The top 10 vehicles are projected to retain an average of 58% of their original MSRP, compared to the market average of 44.6%.
- Toyota dominates the list, securing four of the top ten spots, including the #1 2025 Toyota Tacoma with a projected 64.1% resale value.
- The full top 10 list includes the 2025 Toyota GR Supra (53.7%), 2025 Porsche 911 (53.8%), 2025 Toyota RAV4 (53.9%), 2025 Honda CR-V (54.4%), 2025 Mercedes-Benz G-Class (56.6%), 2025 Ford Bronco (57.0%), 2025 Toyota 4Runner (60.0%), 2025 Toyota Tundra (60.9%), 2025 Chevrolet Corvette (61.0%), and 2025 Toyota Tacoma (64.1%).
- Google is accelerating its AI integration into search with a new feature called AI Mode, adding a chatbot-like experience directly to the core of Google Search.
- AI Mode, currently in testing, is only available to Google One AI Premium subscribers and must be enabled in the Labs section of Search.
- The feature offers a search-centric chatbot experience, delivering AI-generated answers directly from Google’s search index with supporting links throughout.
- AI Mode uses the Gemini 2.0 model, aiming to improve Google's ability to handle more advanced queries while providing real-time data and web interaction.
- While concerns remain about Google's shift away from traditional website linking, Stein asserts that AI Overviews an
Hosts: Paul J Daly and Kyle Mountsier
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