Local dealerships aren’t worried about cars manufactured in the US

Ahead of tariff concerns, Honda is leaning into its American roots, announcing a new U.S. plant set to produce Civics by 2028 while assuring customers that its domestically built lineup helps protect prices from the global uproar.

Garrett Feduke, owner of Morganton Honda, weighed in on tariffs.

“They’ve just said they’re going to hold their prices steady for now,” Feduke said. “They’re pretty high on American production.”

Honda has built vehicles in the U.S. since 1982. The company operates seven manufacturing plants across the country and announced in March the opening of a new Civic plant in Indiana. Production is set to begin in 2028. The new plant replaces a production facility in Mexico.

Many of Honda’s popular models – Accord (Marysville, Ohio), CR-V (East Liberty, Ohio), Pilot (Lincoln, Ala.), Ridgeline, and Civic (Greensburg, Ind.) are manufactured in the U.S.

In a recent statement from Honda regarding tariffs, the company informed consumers that the proposed tariffs put them at an advantage.

‘Honda is uniquely positioned to help minimize this impact. Many of its most popular models are assembled in the United States using domestically sourced components, offering an advantage in both pricing and availability.’

“Change is hard, so when change is announced everybody kinda panics, but then once reality settles in and companies adapt and people adapt, it may not be as hard as everybody thinks,” Feduke said.

Honda service department sees surge ahead of tariffs

Hal Baker, parts and service director at Morganton Honda, celebrated a record-breaking month for service and parts sales in March – the highest in his 32-year career. With proposed tariffs and Honda’s recent announcement to shift more production to the U.S., Baker is adjusting his strategy, increasing inventory, and staying hopeful amid market uncertainty.

Baker compared what’s happening today as similar to business during COVID-19. Baker said getting parts during the pandemic was challenging; he went from four parts on back order to about 30.

“I have been having some concern not only about price increase, but it going back to the way it was during COVID,” Baker said. “From COVID, we’ve been kinda used to the prices going up.”

Morganton Honda receives parts from the central warehouse in Alpharetta, Ga. Although some parts have the origin country listed, others are rebranded with the Honda name.

“We don’t order straight from manufacturers, so it makes it hard for me to know where my parts are manufactured,” Baker said. “We don’t talk to any of the Honda manufacturers. Honda does all the negotiating and pricing.”

The Morganton location normally keeps a two-week supply of parts but has now increased it to a one-month supply. Baker said they’ve tried to boost the daily supply of quick-moving parts, which include parts for express services such as oil changes, windshield wipers, air filters, and cabin filters.

“I’ve been trying to stock a little bit ahead to give us a little bit of cushion. We have not seen a real big jump in price yet,” Baker said. “It’s hard to do because we’re a small [location], we don’t have warehouse space … We have to kind of make room.”

At the end of every month, Baker runs a price increase update on the dealer management software. Last month, the update showed a $1,500 increase in parts inventory, which is not extraordinarily high, according to Baker.

“Right now, we’re telling customers their estimates are good until the end of the calendar month,” Baker said. “We have not seen anything major yet.”

Honda corporate has not sent any tariff communication to the dealership.

According to Baker, the tariffs don’t affect labor rates. Each dealer can set their own labor rate based on the market. Morganton Honda currently has a set labor rate of $140 per hour, which was recently raised for the first time in three years.

“Honda is really good about manufacturing in the United States. Most of their cars are built in the United States, which should ease some of the burden on the sales side,” Baker said.

Baker shared his prediction on proposed tariffs.

“Eventually, I think everybody’s going to calm down, and eventually it’s going to stabilize,” Baker said. “Right now, nobody’s being rational. … Everybody’s trying to over-talk the other person. Nobody wants to look weak on the international scale.

“You’ve got to be positive. … If you’re not positive then you get into a bad state of mind … that’s the way I look at it,” Baker said.

TEAM sales manager says other dealerships should be worried

Carlton Garrison, sales manager at TEAM Chrysler Dodge Jeep Ram of Morganton, says his business is thriving, thanks largely to one simple fact — TEAM is a domestic dealer.

“Our brand team, we own Chrysler, Dodge, Ram, and Chevrolet, which is all American-made stuff,” Garrison said. “Now, can I say every part is made here in the United States? Absolutely not. But I could say 96% of everything that we use is made here.”

Sales at Garrison’s dealership, which specializes in Chrysler, Dodge, Ram, and Chevrolet vehicles under the Stellantis umbrella, have increased by 5% in recent months. If the trend continues, the dealership will be up 12% this month.

Garrison believes the increase in sales is driven by consumers turning away from foreign-made vehicles and toward American-made alternatives due to fears of price hikes and supply chain disruptions.

“People are scared,” Garrison said. “They’re saying, ‘Hey, what do we do? Should we hold on to our money?’ But if they’re smart, they’ll look at what’s made here, and they’re looking at us.”

Unlike competitors who rely heavily on overseas parts, Garrison reports that 96% of his dealership’s inventory is made in the U.S. with minimal reliance on foreign components.

“We’re trading for more Hondas, Toyotas, and Nissans than ever before,” Garrison said.

Garrison has also seen a rise in foot traffic, internet leads, and cash buyers. He admits it’s difficult to separate the impact of the tariffs from seasonal trends like tax refunds and spring promotions, but Garrison said the shift in consumer behavior is real and growing.

“We’re not seeing shortages. We’re not seeing price hikes. We just got a delivery of 12 new cars this week,” Garrison said.

Garrison predicts that many dealerships will not do well with the proposed tariffs and will have to close their doors. He referenced the 2008 recession, stating that history is repeating itself with the trends he’s seeing.

Garrison exuded confidence that his dealership is in a position to weather the storm and come out stronger.

“A lot of other companies might close their doors. Some will temporarily close. Some of your smaller franchise stores will probably end up having to close,” Garrison said. “Our doors will stay open.”

Cloninger Ford stays positive during tariff talk, focus remains clear

As concerns over potential auto tariffs ripple through the industry, a local Ford dealership says it’s business as usual — and even better than usual.

Steve Carson, general manager at Cloninger Ford, spoke candidly about tariffs. Carson emphasized that while national news may stir public anxiety, their team remains focused on facts, transparency, and strong customer service.

“We’re actually up this year, selling more cars, both new and used,” Carson said. “Almost 90% of our vehicles are manufactured in the U.S., and that gives us a huge advantage if tariffs become reality.”

The dealership, known for its customer-first culture and real-time feedback system, has seen only a handful of negative surveys out of hundreds this year.

“We make adjustments quickly,” he added, citing everything from pricing to turnaround times. “Our values are built on integrity and just being better.”

This month, the company’s employee discount rollout was announced, which Carson believes was brought about by proposed tariffs. Ford employees were surprised by the reintroduction of employee discount pricing, now extended to customers, a rare move the dealership credits with a spike in new car sales.

“They didn’t even tell us until they rolled it out. It’s a big deal,” Carson said. “You can buy a car now for basically what I pay.”

According to Carson, if tariffs go into effect, the dealership expects an increase in used car sales, which are exempt. Carson stressed the strength of the used cars at Cloninger Ford, which outsells new vehicles two-to-one.

“Used cars don’t have tariffs. They’re already here, already priced. That makes a difference for customers looking for value,” Carson said. “We refurbish them, make sure they’re solid, and priced below market. People trust that.”

When asked how the company is preparing for potential price hikes or inventory shifts, Carson said they’re not worried.

“We sell too fast to stockpile. If I could get more used cars right now, I would,” Carson said. “But we’re not panicking. The values are holding. We’re in a good place.”

Despite the political backdrop and economic questions, Carson said the dealership’s focus remains clear: keep selling, stay positive, and take care of the customer.

“That’s what brings them back,” he said. “Tariffs or no tariffs, we’re here for them.”