Tariffs Are Hurting DIY Car Mechanics, O'Reilly Auto Parts, AutoZone CEOs Say

Benzinga11-09

Price increases from import duties and tariffs on car parts are causing DIY auto mechanics to delay some projects, according to the heads of O’Reilly Auto Parts (NASDAQ:ORLY) and AutoZone (NYSE:AZO)....

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Parts","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AZO":1.5,"ORLY":1.5},"content_text":"Price increases from import duties and tariffs on car parts are causing DIY auto mechanics to delay some projects, according to the heads of  O’Reilly Auto Parts (NASDAQ:ORLY) and AutoZone (NYSE:AZO).\n\"The pressure to our DIY business as we move through the quarter was primarily felt in some categories, where we could be seeing some deferral in larger ticket jobs,\" O'Reilly Auto Parts CEO Brad Beckham said on the company's Q3 earnings call last month.\nHe did not specifically say what product categories were impacted, though he noted items like \"oil, filters, and fluids\" continued to outperform expectations.\nDon't Miss:\nMeanwhile, AutoZone CEO Philip B. Daniele said his stores are seeing similar behavior but he didn't expect it to last for too long.\n\"Customers can defer that maintenance for some period of time, but ultimately they realize that they've got to fix it or it creates more damage,\" Daniele said during the company's September earnings call.\nBeckham also said he doesn't expect a long-term dip in DIY spending. \n\"We want to emphasize that we are still in the early stages of the consumer response to the ramp-up in price levels,\" he said. \"Even in this environment, our DIY consumers are still showing a willingness to invest in and maintain their vehicles, and we believe any potential deferral pressure will be short term.\"\nTrending: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform\nTariffs on car parts \nPresident Donald Trump earlier this year enacted a 25% duty on auto parts and engines, and many of the countries hit with import tariffs in recent months are responsible for manufacturing car parts used in repair jobs. \nAs of September, motor vehicle repair costs have increased 11.5% from the prior year, according to the U.S. Bureau of Labor Statistics.\nBeckham said these price increases typically have a heavier impact on DIY car mechanics. \n\"The customers taking their vehicle to a professional shop for their repair and maintenance work tend to be less economically constrained than our average DIY customer and less reactive to inflationary pressures on spend in a large, largely nondiscretionary category of their wallet,\" he said on the earnings call.\nHe said the brunt of tariff-related cost increases for his stores has since passed. \n\"While the broader tariff landscape has the potential to remain fluid,\" he said, \"at this stage, we believe we have seen the lion’s share of the cost impacts we are expecting as they relate to the tariffs currently in effect.\"\nRead Next: \nImage: Shutterstock","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.9","shortVersion":"4.35.9","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2582866035","isCrawlerRequest":true}