The Tariff Offset Explained, GM Recalls V8s, $50K Surprise for the Kids

Automotive State of The Union

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Episode #1032: Today we break down Trump’s new tariff offsets for U.S. automakers, GM’s massive recall of its flagship V-8, and a heartwarming $50K donation from West Herr’s CEO to support local youth.

Show Notes with links:

• President Trump is throwing automakers a bit of a lifeline on tariffs—but it’s not a free ride. His new executive orders are easing some of the pressure, but only if manufacturers meet some very specific conditions.
  • Automakers who build vehicles in the U.S. can apply for a special reimbursement starting April 3, 2025.
  • That reimbursement is worth 3.75% of the MSRP for the first year, dropping to 2.5% in year two.
  • To qualify for the full break, at least 85% of the vehicle’s parts have to be made in the U.S. or in a country covered by the USMCA.
  • If a vehicle hits 50% U.S. content, the company will only pay tariffs on the remaining 35% instead of the full 50%.
  • Parts themselves are also capped—companies can get reimbursed for components making up to 15% of a vehicle’s value in year one, and 10% in year two.
  • Vehicles and parts must be assembled in the U.S. to qualify, and a new system for applying is expected within 30 days.
  • At a Detroit rally yesterday, President Trump said, “They took in parts from all over the world. I don’t want that. I want them to make their parts here. We gave them a little bit of time before we slaughter them if they don’t do this.”

• In news that hits close to home, General Motors has issued a voluntary recall of 721,000 6.2-liter V-8 engines due to potential engine seizure, affecting pickups and large SUVs built from March 2021 through May 2024.
  • The issue stems from rod bearing damage caused by sediment and crankshafts with improper dimensions and surface finish.
  • Faulty components were supplied by American Axle & Manufacturing and Questum Macimex.
  • Dealers face backlog challenges as each engine swap takes over 22 hours and requires full replacement engines.
  • GM says inspections will begin first; engines that pass will receive 0W-40 oil, a new filter, cap, and owner’s manual update.
  • “The safety and satisfaction of our customers are the highest priorities for the entire GM team,” said spokesman Bill Grotz.

• We’ll end the show with a bright spot: During the Depew-Lancaster Boys & Girls Club’s Spring Fundraiser, West Herr President/CEO Scott Bieler made a surprise $50,000 donation through his family foundation.
  • The gift honored Bethanne Hollis, West Herr’s VP of Variable Ops and a club board member.
  • The donation helps offset major funding losses for the club this year.
  • Funds will directly support local youth programs and services.
  • “We are so lucky to have both of these amazing individuals leading the way,” West Herr stat

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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