This week will bring new 25% tariffs on auto imports, a change that could shake the car industry.As Bloomberg News reported Saturday (March 29), these new levies — which will first be focused on assembled vehicles but could eventually include car components — could slash profits by as much as $10,000 per vehicle.Some of the hardest-hit car companies could include Porsche, Mercedes-Benz, Stellantis and Volkswagen, the report added, citing analysts from Bloomberg Intelligence.Stellantis and Volkswagen have both recently had their credit ratings reduced, the report adds, while Ferrari has warned that the tariffs could force it to raise the price of some of its vehicles in the U.S. by up to 10%.“It’s the unknown that the market is exponentially scared of,” Bloomberg Intelligence credit strategist Joel Levington said. “It certainly opens up the potential for not necessarily defaults, but for credit quality weakening at a more rapid pace in autos than in other spaces.”The report also noted that moving more production to the U.S. may offset some of the tariff impact, but that such a shift would be costly.“Automotive supply chains were built over decades to optimize production costs,” said Nichole Hammond, senior portfolio manager at Angel Oak Capital. “It will take years to re-shore to the U.S. if companies choose to do so.”The tariffs, set to go into effect April 2, were ordered last week by President Donald Trump, with the White House arguing they are necessary to revitalize the American car industry and stop the flow of automotive imports from flooding the market.Trump told NBC News Saturday that he hoped the tariffs would lead foreign carmakers to increase their prices, as it would cause people to purchase American-made vehicles

Mercedes-Benz has issued a recall for certain plug-in hybrid models from its AMG performance division due to a software error that may cause a loss of drive power.

Mercedes-Benz USA is launching a new business model for upfitting Sprinter and eSprinter Cargo Vans, elevating the way vocational vehicle upfits are ordered, delivered, and invoiced