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Major automotive brands such as General Motors (GM), Ford, Hyundai, Toyota, and Honda will face significant challenges as 40% of all new cars sold in the U.S. come from imports. As these legacy automakers are likely to experience a drop in profits, the industry landscape is expected to shift dramatically. A report indicated that Tesla could emerge as a dominant force due to its operational strategy of manufacturing vehicles close to the sales markets.
A detailed analysis revealed that Tesla is unique among its competitors, manufacturing 100% of its vehicles in the U.S. By comparison, only 77% of Ford's output is U.S.-based, with many other firms trailing significantly. The immediate implications could involve a shake-up that sees weaker players potentially forced out of the U.S. market.