WSJ What’s News — What’s News in Earnings: How Automakers Overcame Tariffs and Supply-Chain Snafus

Published: November 6, 2025
Host: Chris Otz (Wall Street Journal)
Guest: Steven Wilmot (WSJ European Autos Reporter)

Episode Overview

This episode takes a close look at how global automakers are navigating the latest round of supply-chain disruptions, tariff impacts, and the changing landscape of electric vehicle (EV) support in the U.S. Despite formidable headwinds—including a renewed chip crisis, costly tariffs, and fading U.S. EV incentives—automakers are delivering surprisingly solid earnings. The discussion spotlights how industry leaders are responding to and strategizing around these challenges.

Key Discussion Points & Insights

1. Resurgence of the Chip Crisis

• Background:
  The automotive industry is facing a fresh semiconductor shortage reminiscent of the COVID-19 era, largely due to trade tensions involving Nexperia, a Dutch chip firm acquired by a Chinese company.

• Steven Wilmot (01:48):

  • Chinese government halted exports of Nexperia chips from China, impacting global automakers.
  • Recent US-China negotiations led to some easing, but supply remains tight:
    “Chip supplies do seem to be easing, but they remain tight.”

• Automaker Response:
  Automakers are aggressively seeking alternative suppliers.

  • “For the short term, we're covered. And it goes without saying that we're scurrying around the world to look for alternatives.”
    —Ola Källenius, Mercedes CEO, (02:56)

2. Tariff Relief and Its Impact

• Trump-Era Tariffs:
  Automakers have faced steep tariffs, costing billions, but 2025 has brought relief via international agreements.

• Steven Wilmot (03:20):

  • Recent deals with EU, Japan, and S. Korea reduced some tariffs.
  • Temporary effects: Automakers front-loaded shipments to beat the tariffs and later worked down excessive inventories, muting the immediate benefit.

  “Those effects kind of balance each other out… But, yeah, the outlook is looking a bit less bleak than it was three months ago.” (03:20)

• Chris Otz (04:22):

  • US automakers (Ford, GM, Stellantis) benefit from a revised parts tariff rebate program, saving hundreds of millions to over a billion dollars annually.
  • “Ford said that they would benefit by about $1 billion just from this one change that Trump made with the parts tariff.” (04:22)
  • The program runs through 2030, lifting stock prices, especially for GM.

3. The End of US EV Incentives & the 'EV Winter'

• EV Tax Credit Expiring:
  The last quarter for the $7,500 federal EV tax credit triggered a final surge in US EV sales.

• Industry Impact:

  • Even Tesla, whose core auto business has stagnated, saw a lift.
  • Legacy automakers poised for a sharp drop in EV sales as incentives disappear.

• Chris Otz (05:53):

  • “It looks like we're now entering what we might call an EV winter—figuratively, literally.”
  • Ford expects EV sales to drop by half; legacy automakers reevaluate their EV commitments.

4. Backtracking on Electric Vehicle Strategies

• European Automaker Losses:

  • Porsche logged its first quarterly loss since going public, postponing EV projects into the 2030s.

  • Mercedes and BMW also experience EV headwinds but less so for BMW due to a slower ramp-up.

    —Steven Wilmot (06:48):
    “It's been most dramatic at Porsche, which had its first quarterly loss since its IPO three years ago… but we've also seen similar things this year from Mercedes, BMW, a bit less so because it was a bit slower to invest in EVs.”

• US Automakers’ U-turn:

  • Ford reconsidering EV output due to $5 billion annual losses from the segment.

  • GM, despite pledging “all EV by 2035,” is rethinking production targets and taking charges for unused capacity.

    —Mary Barra, GM CEO (08:07):
    “We're going to stay true to what we've said before, that we're going to build to consumer demand. We're not going to overbuild. We're going to maintain that discipline.”

Notable Quotes & Memorable Moments

• Ola Källenius, Mercedes CEO (02:56):
  “For the short term, we're covered. And it goes without saying that we're scurrying around the world to look for alternatives.”

• Steven Wilmot (03:20):
  “Those effects kind of balance each other out a bit… So it wasn't quite as simple as saying it was a much easier quarter. But, yeah, the outlook is looking a bit less bleak than it was three months ago.”

• Chris Otz (04:22):
  “Ford said that they would benefit by about $1 billion just from this one change that Trump made with the parts tariff.”

• Chris Otz (05:53):
  “It looks like we're now entering what we might call an EV winter—figuratively, literally.”

• Steven Wilmot (06:48):
  “It's been most dramatic at Porsche, which had its first quarterly loss since its IPO three years ago because it wrote down a lot of the investments it had made into electric vehicles.”

• Mary Barra, GM CEO (08:07):
  “We're going to stay true to what we've said before, that we're going to build to consumer demand. We're not going to overbuild. We're going to maintain that discipline.”

Key Timestamps

| Timestamp | Segment | |-----------|------------------------------------------------------| | 00:37 | Introduction and overview of automaker challenges | | 01:48 | Chip supply crisis explained (Wilmot) | | 02:56 | Mercedes CEO on chip workarounds | | 03:20 | Tariff situation and European automakers | | 04:22 | US automakers and tariff rebate program | | 05:53 | Expiring EV tax credits and sales surge | | 06:48 | Porsche's EV losses and European automaker reactions | | 07:19 | US automaker EV strategies and backtracking | | 08:07 | GM’s Mary Barra on matching EV supply to demand | | 08:17 | Wrap-up and closing remarks |

Conclusion

This episode presents a nuanced look at a resilient auto sector adapting to recurrent supply shocks, evolving trade policies, and a dramatic shift in the electric vehicle landscape. Both host and guest provide industry-insider perspectives on how earnings are shaped by political decisions, shifting incentives, and corporate strategy pivots—resulting in a more cautiously optimistic future for automakers, even as the “EV winter” deepens.