Navigating the Auto Tariffs: How Dealerships Can Adapt and Thrive with XDC
- jamie3814
- 4 days ago
- 3 min read
The automotive industry continues to evolve amid global supply chain shifts and policy changes. The recent push for a 25% tariff on imported vehicles and parts introduces a new wave of challenges and opportunities for dealerships across the U.S. This bold move is intended to stimulate American manufacturing, reduce dependency on foreign production, and strengthen national security. However, it may also lead to rising vehicle costs, inventory challenges, and changing consumer behavior.
In this environment, leveraging the right tools and strategies becomes essential. Experience Development Center offers solutions that help dealerships not only adapt but also maintain sales momentum and customer satisfaction.
Breaking Down the 25% Auto Tariff
Understanding the structure of the new tariffs is key to planning your dealership’s next moves. Here’s a simplified overview of how they work:
Vehicles Assembled in the U.S. (with North American Parts)
Vehicles built in the U.S. using components from Mexico and Canada (within USMCA rules) are not subject to the tariff.
U.S.-Assembled Vehicles with Foreign Core Components
If a vehicle includes critical components (like engines or semiconductors) from outside North America, a 25% tariff applies to those parts.
Vehicles Assembled in Canada or Mexico
A partial tariff is applied based on the percentage of parts not originating from the U.S.
Example: A vehicle made in Mexico with 60% foreign content would face a 15% total vehicle tariff.
Vehicles Assembled Outside North America
A flat 25% tariff is applied to the full vehicle value, including popular models from Europe and Asia.
While this aims to bring auto production back to American soil, it also forces dealerships to rethink sourcing, pricing, and customer communication.
How XDC Helps Dealerships Succeed During High Tariffs
The impact of tariffs will ripple through every aspect of dealership operations. Whether it's overcoming inventory shortages or managing customer concerns about price hikes, XDC’s virtual business development services help dealerships navigate these challenges with confidence.
Here’s how:
1. Customer Education and Confidence Building
Tariff changes can create confusion and hesitation among buyers. XDC's trained representatives support dealerships by:
Explaining pricing changes clearly during follow-up calls or appointment setting.
Highlighting U.S.-assembled or tariff-free options.
Helping customers make confident, informed decisions without overwhelming them.
This clarity fosters trust and transparency, especially when affordability becomes a key concern.
2. Generating New Opportunities from Existing Customers
As new vehicle prices rise, customers may be more open to:
Trading in older vehicles
Considering certified pre-owned inventory
Exploring leasing options to keep monthly payments low
XDC uses data mining to identify customers with high-equity vehicles and targets them with timely, relevant offers, turning uncertainty into sales potential.
3. Keeping Inventory Moving Despite Supply Disruptions
Global supply chain issues could slow down vehicle deliveries, especially for foreign brands. XDC helps maintain momentum by:
Reaching out to waitlisted customers with regular updates
Offering alternative models when preferred vehicles are delayed
Rescheduling and securing future appointments, keeping customers engaged throughout
This ensures fewer lost opportunities and a smoother experience for buyers.
4. Driving Post-Sale Revenue with Upsells and Loyalty
When new sales slow, post-sale engagement becomes even more valuable. XDC supports dealerships by:
Following up to ensure customer satisfaction and retention
Re-engaging previous customers through thoughtful campaigns and service reminders
By reinforcing loyalty, dealerships can boost service lane traffic and long-term value.
5. Scaling Without Overwhelming Internal Teams
Tariff-driven disruptions demand flexibility. XDC allows dealerships to scale up their outreach without burning out internal staff by:
Providing a fully-trained virtual BDC team
Offering multi-channel communication (calls, emails, texts)
Delivering performance tracking and transparent reporting
This ensures dealerships can handle market shifts quickly and effectively, while staying focused on customer experience.
Strategic Adaptation is the New Advantage
While the 25% tariff may change the way vehicles are priced and sourced, it also provides an opportunity for dealerships to stand out through agile communication, smarter customer targeting, and long-term relationship building.
By partnering with XDC, dealerships can adapt quickly and turn challenges into growth opportunities, keeping their pipeline full and their customers confident, no matter how the market shifts.
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