The Garage Report #003

BIG STORY
U.S.-Japan Trade Deal Unleashes $550B Boost for American Auto Jobs and Savings!

Key Highlights from the U.S.-Japan Trade Deal

• Tariff Cuts: U.S. drops tariffs on Japanese autos and parts to 15% (from a threatened 25%), but steel and aluminum stay high—big relief for importers!

• Japan's Big Pledge: A whopping $550 billion investment fund into U.S. sectors like autos, semiconductors, AI, and energy, plus easier market access for American goods.

• Consumer Wins: Could save you thousands on Japanese cars by avoiding price hikes, while boosting U.S. jobs and economy—though domestic makers might push costs up.

The Deal Breakdown

Huge news out of Washington and Tokyo that's got the entire auto industry buzzing—President Trump and Japanese PM Shigeru Ishiba just inked a major trade deal on July 22-23, slashing U.S. tariffs on Japanese cars and parts down to 15% from a scary 25% threat, while keeping steel and aluminum on the hook at higher rates. In return, Japan's coughing up a massive $550 billion investment fund aimed at boosting U.S. sectors like autos, semiconductors, AI, and energy, plus they're ditching those pesky extra safety tests on American vehicles and opening doors wider for our cars, trucks, and even rice exports.

Why It Matters for Consumers and the Industry

This is all about dodging a full-blown trade war that's already hammered folks like GM with billion-dollar hits, and it sets the stage for similar pacts with the EU and others before that August 1 tariff deadline hits. For you consumers reading this, it could mean dodging big price hikes on popular Japanese rides like Toyotas and Hondas—potentially saving you thousands per vehicle by keeping import costs in check—while sparking more jobs and growth here at home from those investments. But watch out, U.S. makers are grumbling about unfair edges, which might nudge domestic prices up if they shift production or pass on costs. Overall, this feels like a win for stabilizing the market and keeping your next car buy more affordable, but let me know what you think—could this sway your shopping plans?

MARKET SNAPSHOT
This Weeks Industry Insights

No major changes this week compared to last, but If you're shopping right now, here’s the data that matters:

🏷️ New-car average price is $48,907, up 0.4% from last month but only 1.2% higher year-over-year

📈 Days’ supply is at 82—that’s a 14.5% rise from June but still lower than last year

💰 Used-car values up 2.6% YoY, with the Manheim Index hitting 206.9 mid-month—the lowest in recent weeks but still above 2024 levels

📉 New-vehicle sales pace held steady, with annualized June rate around 15.3 M units—up 2.3% year-over-year but flat month-over-month

NEW DROP
Ford Bronco Sport Raptor Coming!

We've got some exciting off-road buzz this week—Ford's cooking up a Bronco Sport Raptor, and it looks like a beast in the making! A prototype was just spotted testing for the first time, rocking Raptor badges and some serious hardcore upgrades that scream adventure-ready. This comes hot on the heels of the 2025 Badlands trim's Sasquatch Package, which already jacked up the top-end price to around $47K.

Here's the scoop: The Bronco Sport Raptor could easily tip the scales at $50K or more, making it the most affordable in Ford's Raptor family—cheaper than the Ranger Raptor at $57K and way under the big Bronco Raptor's recent $10K price cut from $90K. Expect features like the Sasquatch vibes (think beefy suspension, larger tires) plus extras such as a sportier exhaust, performance tweaks, and maybe even Fox shocks, though engine deets are still under wraps.

Why care? If you're eyeing a compact SUV with real off-road chops, this could fill the void left by the axed Escape, but that $50K tag might make buyers pause—especially after the Bronco Raptor's sales hiccups and discounts. Ford's betting big on this to boost their lineup, but will folks shell out for it? Let me know in the comments if a $50K Bronco Sport Raptor is on your wishlist!

(Source: Ford Authority)

My take: This is a smart move, but at that $50K price point it better deliver unbeatable performance or it could get lost in a crowded SUV market. If they nail the powertrain and keep it fun to drive, this might just be the sweet spot for adventure seekers who don't want a full-size beast.

👉 See The Full Write Up Here

FAST UPDATES
Quick Shifts

• GM Quarterly Profit Slumps 35% Amid Billion-Dollar Tariff Hits: General Motors reported a sharp 35% drop in quarterly profits, clocking in at $1.9 billion on $47.1 billion in revenue, largely due to over $1 billion in tariff costs from ongoing trade tensions. Despite beating estimates and affirming full-year guidance, the company is accelerating U.S. investments to shift production and mitigate impacts—highlighting how tariffs are reshaping the auto landscape for everyone from manufacturers to buyers.

• Tesla Profit Falls as EV Sales Plunge, Pledges Cheaper Cars Ahead: Tesla's profits tumbled amid falling EV sales, hurt by market challenges and competition, but CEO Elon Musk is doubling down with promises of more affordable models to revive demand. As tariffs and reduced incentives bite, this could signal a shift toward budget-friendly EVs, but it's a stark reminder of the EV market's volatility right now—if you're eyeing a Tesla, deals might be coming.

• Hyundai Flags Larger Tariff Impact After Profit Drops: Hyundai Motor warned of escalating tariff effects following a profit decline, with the company bracing for higher costs that could ripple through to vehicle prices and operations. This comes as global trade pressures mount, pushing automakers to rethink supply chains—expect potential price hikes on imports, but also more U.S.-focused investments to dodge the worst of it.

• Acura TLX Discontinued as Midsize Sedans Fade Away: Acura is axing the TLX, marking the latest casualty in the shrinking midsize sedan segment as buyers flock to SUVs and crossovers. With sales dwindling, this move underscores the industry's pivot— if you're a sedan fan, options are getting slimmer, but it opens doors for more exciting utility vehicles in the lineup.
  

BY THE NUMBERS
Here Are The Top 10 Oversupplied Vehicles

If you’re thinking about buying one of the vehicles on this list, expect some hefty discounts as many dealers are likely desperate to move them.

ON THE RADAR
Upcoming Automotive Events

NASCAR at Iowa – Iowa Corn 350 (August 3, 3:30 PM ET) Head back to the heartland for this high-stakes oval thriller at Iowa Speedway, where short-track action meets fierce competition in the Cup Series. With 350 laps of pure speed and strategy, expect door-banging passes and playoff implications ramping up—perfect for fans craving that classic NASCAR intensity.

F1 Dutch Grand Prix – Zandvoort (August 29–31, Race Sun 9 AM ET) The orange army descends on the dunes of Zandvoort for a rollercoaster circuit full of banked turns, elevation changes, and crowd energy like nowhere else. Post-summer break, this one's primed for surprises with potential rain and title battles heating up—don't miss the home hero vibes and high-speed drama.

Monterey Car Week (August 8–17) California's ultimate automotive extravaganza returns with auctions, unveils, historic races at Laguna Seca, and the iconic Pebble Beach Concours d'Elegance. From hypercars to classics climbing the corkscrew, it's a week of luxury, speed, and jaw-dropping displays for every gearhead.

Silverstone Festival (August 22–24) Dive into Britain's motorsport heritage at Silverstone with historic racing, parades, and family-friendly fun featuring everything from F1 legends to rally icons. Expect thrilling on-track action, celebrity drivers, and a massive celebration of speed—ideal for soaking up that classic circuit atmosphere.

THIS WEEK IN AUTO HISTORY
The Ferrari F40 Gets Revealed!

July 21, 1987 — This day marked the birth of a legend when Ferrari unveiled the F40, the first production car to claim a top speed over 200 mph! Launched to celebrate Ferrari’s 40th anniversary, this Italian masterpiece packed a 2.9-liter twin-turbo V8 pumping out 471 horsepower, hitting a verified 201 mph in testing—mind-blowing for its time. With a carbon-fiber body, minimal interior (no radio, just raw speed), and a 0-60 mph sprint in 3.8 seconds, it was built as the ultimate road-legal racer, limited to just 1,315 units.

Designed by the legendary Leonardo Fioravanti, the F40 was Ferrari’s farewell to its founder Enzo Ferrari, blending track-ready aggression with street-legal swagger. It outpaced rivals like the Porsche 959 and set a benchmark for supercars, influencing everything from the F50 to today’s SF90 Stradale. Back in ’87, this was a $400,000 dream machine—now, pristine examples fetch over $2 million at auction!

This story’s a testament to Ferrari’s bold push for performance, mirroring today’s hypercars chasing similar feats.

CAR BUYING
Pro Tip For Used Car Buyers

Thinking about a pre-owned ride? Be sure to run a full vehicle history report—it’s one of the best ways to verify a dealer’s claims (accidents, title issues, etc.). You can do that here 👉 RUN A HISTORY REPORT

VIDEO OF THE WEEK
Top Gear First Drive: Lamborghini Temerario!

This is Lamborghini’s new ‘entry level’ supercar, the Temerario. An all-new replacement for the Huracan, it thus spells the end of its predecessor’s beloved naturally aspirated V10. In its place is a V8 that revs to 10,000rpm, but one that’s assisted by turbos and e-motors. Is it better, worse, or just different? Tap the thumbnail to watch or click here

📨 I Want To Hear From You!

What did you think about this email? Did you get some value? I hope so because I promise to keep making The Garage Report better every week!

Got opinions on the U.S.-Japan trade deal or the $50K Bronco Sport Raptor? Excited about potential savings or curious about how tariffs might hit your next car buy? Hit reply and let me know—I read every email.

Catch you next week!

Brian Mello
The Garage Report
@realbrianmello