Been at my OEM for going on 11 years. The tariff situation has completely reshuffled our cost structure and yet every planning meeting I sit in still feels like we're waiting for someone in DC to flip a switch and make it go back to normal. We're still modeling scenarios like this is temporary. It's not. The Supreme Court ruling last week on IEEPA refunds was a nice headline but the Section 232 tariffs on steel, aluminum, and parts aren't going anywhere. Anyone else sitting in rooms where leadership is still in denial mode? How is your organization actually adapting, or are they?
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- Tariffs are here to stay so why is nobody internally planning like they are?
You nailed it. We got a deck…
You nailed it. We got a deck last quarter showing three "scenarios" and scenario one was literally "tariffs resolved by Q3." That ship has sailed. The suppliers who figured this out six months ago are already ahead. Everyone else is scrambling.
The problem is the planning…
I heard through the…
I heard through the grapevine that at least two OEMs are quietly modeling a scenario where average transaction prices hold above $50k through 2028. That's not a tariff problem anymore, that's a structural affordability problem. And nobody wants to say it out loud.
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