New-vehicle sales in the US rose in Q1 as consumers rushed to lock in purchases ahead of the implementation of tariffs that are expected to significantly boost vehicle prices.

Industry analysts warn that the upbeat start to the year could quickly unravel as Trump’s 25% tariffs on all imported vehicles go into effect.

“The disruptions and heightened uncertainty caused by such tariffs could result in the first quarter actually turning out to be the high point for the year,” Jonathan Smoke, Cox Automotive’s chief economist, said ahead of industry sales reports.

The numbers: GM reported 17% YoY sales growth and retained its title as the No. 1 automaker in the US. The company said it expected to be the No. 2 US EV maker, with EV sales up 94% to nearly 32,000 units.

Kia and Hyundai reported another strong month, with their best-ever March and Q1 results. Hyundai’s hybrid sales grew 68% YoY, while its EV sales were up 3%.

American Honda’s sales rose 5.3% in Q1 and 13.2% in March. It was the brand’s best March and best Q1 for electrified vehicle sales, per a news release. The BMW brand’s EV sales were up 26.4% YoY.

Toyota’s Q1 sales grew about 1%, while its EVs were up nearly 40% YoY. Ford’s sales fell 1.3% in Q1, but EVs and hybrids grew 11.5% and 32.9%, respectively.

Storm clouds: Analysts have been sounding the alarm that the Trump administration’s trade policies are likely to raise costs for automakers already contending with costly investments in electrification, very likely leading to price increases for consumers—exacerbating affordability issues in a market in which the average price of a new vehicle hovers around $45,000.

Keep reading here.—JG

Once among the highest-flying AI startups, Inflection has spent the last several months shifting its focus to more down-to-earth tech.

Around a year ago, the startup’s path was forever altered when Microsoft inked a deal to license Inflection’s models and hire much of its staff, including co-founders Mustafa Suleyman and Karén Simonyan. Since then, CEO Sean White, who joined to replace Suleyman around the same time, has charted a new course focused more on practical enterprise use cases and less on chasing superintelligence.

White is zeroing in on a few key advantages—the conversational or emotional intelligence of its models, their ability to run on-premises or in private clouds, and its institutional know-how.

Tech Brew spoke with White about Inflection’s new mission, why he sees the AGI race as a distraction, and what he thinks of the hype around agents.

Keep reading here.—PK

“Stunning” is how Thomas Klier, a former senior economist and economic advisor at the Chicago Fed, described the findings of his latest research into how the auto industry’s shift to electric vehicles may or may not be reshaping production footprints in North America.

Klier told Tech Brew that the latest report he co-wrote serves as a “bookend” to previous research from the Chicago Fed that suggested that the transition to EVs won’t result in significant changes to the current footprint, contrary to some assumptions. While that report looked to the end of the decade, Klier’s latest research dove into the recent past—2016 to 2023.

“Every day we hear about how electrification is the way the industry is moving toward,” Klier said. “But the piece that very few people are talking about represents still the vast majority of the industry—and that’s the whole system that’s based around the internal combustion engine.”

Keep reading here.—JG

AI agents aren’t just tools—they’re teammates. Join us on April 17 to explore how AI is reshaping collaboration, productivity, and workplace dynamics. Hear from experts on strategic integration, ethical considerations, and AI policies. Register now and be part of the conversation!

Usually, we write about the business of tech. Here, we highlight the *tech* of tech.

Let’s play: Nintendo dropped some news on its forthcoming Switch 2 this week, and Morning Brew reports that “notoriously hard-to-please gamers are actually excited about almost everything except the price tag.”

Reviewers across the web got their hands on the device for testing purposes. It won’t be released till June 5, but if you’re considering plunking down $450 for it, you might wanna read the reviews:

• We played with the Nintendo Switch 2. It’s refined but unsurprising (Wired)
• Nintendo Switch 2 hands-on: It’s all in the games (The Verge)
• The Nintendo Switch 2, hands-on: It’s pretty good! (TechCrunch)
• I played the Nintendo Switch 2: Is it worth it? (CNET)