The latest episode of the Parts Edge Podcast dives into a topic stirring concern across the industry: tariffs on imported automotive parts. Host Kaylee Felio is joined by Chuck Hartle to unpack what’s real, what’s rumor, and what parts managers should actually be doing right now.
(00:25) The Real Impact of Tariffs: Fear vs. Reality
(07:55) Pricing Strategy: How to Maintain Gross Profit
(12:20) Economic Implications: The Broader Impact of Parts Tariffs
(14:54) Inventory Management Opportunities
(17:20) Future Outlook: Weathering the Storm
Making Sense of the Tariff Buzz in Auto Parts
Chuck cuts through the noise: “There’s no shortage. This is not a strike. It’s a tax conversation wrapped in fear.” Many dealers have been spooked into over-ordering parts, anticipating massive price jumps and empty shelves. But is that necessary?
Right now, the biggest impact of the tariff announcement isn’t cost—it’s panic. While some price increases are taking effect (like FCA’s 3% in May and June, and a 7.5% bump on maintenance parts), Chuck urges managers to slow down. One dealer tried to bulk order $200,000 in parts—but the appreciation didn’t justify the cost or risk.
Chuck emphasizes that even if your inventory goes up 10% in value, carrying costs can wipe out gains. He advises sticking to a 60-day supply and keeping your pricing strategy sharp, not bloated with excess inventory.
One of the biggest takeaways? Watch your menu-priced items. With parts appreciating 10–15%, managers must make sure those increases are reflected in their fixed prices—or risk losing gross profit overnight.
Chuck explains how to use your monthly appreciation/depreciation report to catch those rising costs before they erode your margins. Brake pads, oil filters, and air filters are all on the watch list.
Chuck believes the industry is facing a short-term scare, not a long-term shift. “This isn’t COVID. It’s not a parts shortage. It’s a tax headline,” he says. He warns that manufacturers may use this window to drive up prices and push more inventory—so managers need to stay grounded, not reactive.
He also points out the bigger picture: increasing parts costs affect all repair centers, including the aftermarket. This could price some consumers out of basic vehicle repairs, a concern that’s gaining attention in Washington.
Chuck closes the conversation with how PartsEdge can support dealerships in this environment—especially by identifying low-gross parts, helping optimize menu pricing, and providing strategies to purge obsolete inventory. The mission is clear: maintain gross, stay lean, and keep your shelves profitable.
______
Sponsors
This show is powered by PartsEdge — Your go-to solution for transforming dealership parts inventory into a powerhouse of profitability. Their strategies are proven to amp up parts sales by a whopping 20%, all while cutting down on idle inventory. Optimize your parts management at 🔗 www.partsedge.com
______
Key Takeaways
Tariffs haven’t hit yet—but fear has.
Watch and adjust menu-priced items monthly.
Avoid bulk ordering unless you’ve done the math.
- Use appreciation to purge and clean inventory.
_______
Quote
“The most prudent thing you can do as a parts manager is review your appreciation report every month—especially on menu-priced items.” — Chuck Hartle
Connect
Chuck Hartle
🔗 LinkedIn
🌐 www.partsedge.com
Kaylee Felio
🔗 LinkedIn
🌐 www.partsedge.com
