US Auto Sales Set to Modestly Rise in First Quarter as Tariffs Signal Bumpy Ride

New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
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US Auto Sales Set to Modestly Rise in First Quarter as Tariffs Signal Bumpy Ride

New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo

US auto sales likely inched higher in the first three months of the year on steady demand, data from the carmakers will show on Tuesday, as the industry braces for the fallout of President Donald Trump's latest tariffs.

Market research firm Cox Automotive has estimated that US new-vehicle sales volume increased 0.6% to 3.79 million units in the first quarter from a year earlier.

"Automotive tariffs — now set to take effect on April 2 — might have pulled ahead some vehicle purchases in Q1," said Jessica Caldwell, head of insights at automotive data provider Edmunds.

General Motors pickup trucks and SUVs are expected to help it retain its top spot in the quarter, followed by Toyota Motor's North America unit and Ford, according to Cox, Reuters reported.

Electric-vehicle maker Tesla is also forecast to report a drop in first-quarter vehicle deliveries on Wednesday.

President Trump's move to levy tariffs on US auto imports is widely seen as weighing on consumer sentiment and forcing a rethink on purchases.

The tariffs could also reduce the number of lower-cost imported vehicles on the market, such as Ford's compact Maverick pickup truck, further straining affordability as the average new-vehicle price nears $50,000.

"The potential for higher inflation due to new tariffs at American borders will all potentially hold back new-vehicle sales in 2025," Cox said.

Caldwell said tariffs would likely create challenges for the industry in the second quarter and beyond and expects discounts to be "harder to come by".



Sam Altman Says Meta Offered $100 Million Bonuses to OpenAI Employees 

The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters) 
The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters) 
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Sam Altman Says Meta Offered $100 Million Bonuses to OpenAI Employees 

The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters) 
The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025. (Reuters) 

OpenAI CEO Sam Altman said Meta has offered his employees bonuses of $100 million to recruit them, as the tech giant seeks to ramp up its artificial intelligence strategy.

The alleged attempts by Meta to hire OpenAI staffers are the latest signs of a frenzy to hire top engineers to develop AI models, and they come at a time when the Facebook owner is working on building its superintelligence unit to catch up with competitors.

Competition for AI talent has reached a feverish pitch as superstar researchers are being courted like professional athletes on the belief that individual contributors can make or break companies.

"They (Meta) started making giant offers to a lot of people on our team," Altman said on the Uncapped podcast that aired on Tuesday, hosted by his brother. "You know, like $100 million signing bonuses, more than that (in) compensation per year."

"At least, so far, none of our best people have decided to take them up on that," Altman said.

Meta did not immediately respond to a request for comment outside regular business hours, and Reuters could not verify the information.

"I've heard that Meta thinks of us as their biggest competitor," Altman said.

His comments come just days after Meta invested $14.3 billion in data-labeling startup Scale AI, and hired its top boss, Alexandr Wang, to lead its new superintelligence team.

Meta, once recognized as a leader in open-source AI models, has suffered from staff departures and has postponed the launches of new open-source AI models that could rival competitors like Google, China's DeepSeek and OpenAI.