Last year was not particularly kind to the automotive industry, and things are already shaping up to be just as brutal in 2026. With the first quarter under our belt, we’re getting a better understanding of where things are heading, and the results are, well, inconsistent, to say the least. Affordability, surging gas prices, a meh job market and lackluster consumer confidence all really pulled down on the auto market during the first three months of the year. Lest we forget, there was no federal tax credit helping EV sales, either.
U.S. consumers are trapped in sort sort of medieval ass-kicking device. Just think about it. Car prices are up. Ass kick. Interest rates are up. Ass kick. Insurance is up. Ass kick. Now, gas prices are up. Ass kick. Oh, and don’t you for a second lose focus on the fact you could lose your job tomorrow and be replaced by a robot. Double ass kick. There’s also a war that doesn’t seem like it’s ending anytime soon. Triple ass kick.
It’s hard to buy a car when there are multiple size 12 boots taking turns reminding you who’s the boss all day long, and now it would seem that most (but not all) automaker are joining all of us in the ass-kicking device. From Automotive News:
First-quarter deliveries fell at most of the biggest automakers ― General Motors, Toyota Motor Corp., Ford Motor Co., Honda Motor Co. and Nissan Motor Co. But it was the sixth consecutive quarter of growth for Hyundai-Kia and the third straight for Stellantis.
At Toyota, Lexus posted its first quarterly decline in more than three years, offsetting a slight gain for the company’s mass-market brand.
[…]
Sales have fallen for two consecutive quarters at General Motors but executives say the automaker can weather more headwinds.
[…]
Some of the biggest first-quarter declines occurred at smaller automakers, including those more dependent on imports. Sales fell 14 percent at Mazda and 15 percent at Mitsubishi.
At Subaru, volume dropped for an eighth straight month, down 24 percent in March and 15 percent for the quarter.
[…]
Ford, after discontinuing one of its least-expensive models, the Escape, hopes to entice shoppers into other utility vehicles, notably the Bronco Sport, which set a first quarter sales record of 35,021, up 5 percent. Entry-level trims of the Maverick, Ranger and Bronco Sport rose 8.4 percent, Ford said.
Like I said, though, not everyone is getting in on the ass-kicking device. I wasn’t aware that was an option, to be honest.
First-quarter deliveries rose 1 percent at Hyundai, to 205,388, and 4.1 percent at Kia, to 207,015, both marking all-time highs. The two Korean brands expect to boost sales further this year after each set a record in 2025, even if the broader market is flat or lower, as many analysts predict.
[…]
Kia said first-quarter hybrid models rose 73 percent and overall electrified models advanced 30 percent.
Stellantis appears to be finding its stride after years of market-share losses.
The automaker’s U.S. sales rose 4.1 percent in the first quarter on gains at Ram, Jeep and Dodge.
Under new CEO Antonio Filosa, the automaker is working to end a streak of annual sales declines that has stretched to seven years in a row.
Stellantis received a boost from the redesigned Jeep Cherokee and the freshened Grand Wagoneer.
Ram sales jumped 20 percent, marking its best first quarter since 2023, with sales of the 1500 pickup surging 27 percent. The company revived its 5.7-liter Hemi V-8 engine on the 2026 Ram 1500 last year after dropping it from the previous year’s model.
If we’ve learned anything over the past year or so, it’s that things can change on a dime. So, I wouldn’t be terribly surprised if the economic state we find ourselves in at the end of Q2 is far different than the one we’re in now. Note how I didn’t say “better.” I just said “different,” because I’m very aware of how much worse things are likely to get.
