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According to Reuters, a report from Goldman Sachs paints a rather pessimistic outlook for the US auto industry.
Specifically, the global financial organization and investment bank has lowered its forecast for US auto sales from 16.25 million units in 2025 to 15.4 million. For 2026, Goldman Sachs predicts an even sharper decline, estimating sales of only 15.25 million vehicles.
In addition to the existing 25% tariff on all imported cars into the US, the Trump administration plans to impose further tariffs on auto parts imports starting in early May.
These developments are likely to increase the average price of new cars in the US, regardless of whether they are domestically produced or imported from other countries. Goldman Sachs believes that auto manufacturers will be unable to pass on these additional costs to customers, especially as market demand is already showing a downward trend.
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Despite the uncertainties, Goldman Sachs predicts that new car prices in the US will increase by $2,000- $4,000 within the next six months to a year. This is a significant increase but still lower than the figures in some of the more pessimistic scenarios.
Goldman Sachs has also lowered its global auto production forecast for this year from 90.4 million units to 88.7 million. The organization has also adjusted its prediction for next year from 92.6 million units to 90.7 million.
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