OEM Tariff Plans, Toyota Eyes EVs, Gen Z Ditches Credit Cards

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Episode #1011: Today we’re breaking down the early fallout from sweeping auto tariffs, Toyota’s recalibrated EV strategy, and why Gen Z is ghosting credit cards.

Show Notes with links:

• The 25% tariff on imported vehicles is forcing swift and varied responses from automakers, with some pulling back and others ramping up U.S. operations. The early shakeup shows just how disruptive the new trade landscape could become.
  • Stellantis paused production at Canadian and Mexican plants and laid off 1,000 U.S. workers.
  • Infiniti halted U.S.-bound production of the QX50 and QX55 “until further notice.”
  • VW stopped rail shipments from Mexico; Audi is holding vehicles at U.S. ports post-tariff. JLR is temporarily pausing US shipments.
  • GM is boosting pickup production in Indiana, and Mercedes may shift another model to Alabama.
  • Ferrari and Ineos raised prices up to 11%, while Ford and Stellantis launched deep discounts to keep buyers interested.
  • “Consumers will feel financial pain faster than they will see new jobs,” warned S&P Global’s Stephanie Brinley.

• Once criticized for lagging in the EV race, Toyota is charting a new path with more in-house models and global production—but with tempered expectations. The automaker is still prioritizing flexibility as it balances EV growth with its hybrid-heavy portfolio.
  • The Japanese manufacturer aims to launch 15 internally developed EVs by 2027, including several Lexus models.
  • New production sites in the U.S., Thailand, and Argentina are planned to hedge tariff risks and improve delivery timelines.
  • The target is 1 million EVs per year by 2027—down from earlier projections of 1.5 million by 2026.
  • In 2024, Toyota sold just under 140,000 EVs, less than 2% of its global volume of over 10 million vehicles.

• A new survey reveals Gen Z’s growing distrust of credit cards, with many opting for debit, cash, and peer-to-peer options instead. High APRs, confusing terms, and debt fears are driving a generational payment shift that could reshape future retail habits.
  • 68% of Gen Z say credit card bills cause stress; 51% say cards give them the “ick.”
  • Debit (68%) and cash (67%) top Gen Z’s preferred payment methods—only 35% use credit cards, with 82% of respondents overall saying credit cards are “financially dangerous.”
  • 57% of Gen Z admit they don’t fully understand card terms, and 53% have been surprised by interest charges.
  • “It doesn’t make sense to pay 20%, 25% or 30% in interest just to earn a few percentage points in cash back,” said Ted Rossman, Bankrate senior analyst.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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