In the last few weeks, the major OEMs have all released their Q4 2025 earnings reports. What do they reveal about key auto industry trends?
OEMs continue to face significant challenges. Industry performance has been mixed, with many OEMs reporting some degree of backsliding in revenue or deliveries when measured against Q4 2024.
However, certain manufacturers are also showing signs of resilience and encouragement that the industry as a whole may be able to build on. But could new oil pricing challenges throw a wrench in the works?
Keep reading to learn more about the current state of the auto industry in the North American market.
Cost pressures continue to challenge OEMs
Automotive manufacturers continue to face significant, ongoing cost pressures. While standard cost-of-doing-business challenges like labor remain a factor, the big contributor remains tariffs, which have driven up parts and materials costs for the industry as a whole.
In fact, for many OEMs, Q4 was the moment when the full weight of tariff cost increases hit. This is because pre-tariff materials inventories largely ran out, leaving manufacturers and auto parts suppliers forced to pay tariff prices when restocking.
In many cases, manufacturers chose to absorb a portion of tariff costs themselves rather than pass the full cost on to consumers. Leaders have generally made the calculation that taking the financial impact was preferable to losing market share.
Read this article in full here.
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