McKenzie County Farmer - Latest News

Steve Hallstrom
Special to The Farmer

Auto dealers in northwest North Dakota may have gotten off to a tough start in 2025, with January weather putting the brakes on sales, but they see reasons to be optimistic amid shifting markets, evolving consumer preferences, and a steady recovery from pandemic-related disruptions.

Cody Johnson is the General Manager at Red Rock Auto in Watford City, a Stellantis dealership that sells Chrysler, Dodge, Jeep, and Ram vehicles. He says the brutal winter weather was only a temporary obstacle.

“It’s been really good actually,” says Johnson. “We’ve been staying steady and got through the slower typical winter months, and yeah, I cannot complain. We’ve been doing great. On the service side, we’ve been very steady. Our shop alone is probably a month out with work, so I’m very busy here, as far as tires and that stuff goes. On the sales side, right now, it’s been, I would say, a little slower than typical. I don’t think the weather has helped much, and you know, we’re in that bipolar season right now. It doesn’t want to be winter or summer. We all know there’s not a spring around here (laughs).”

The story is similar for Drew Balogh, General Manager at Williston Auto. His dealership sells Chevrolet and GM vehicles.
“We’re probably about 20 percent off of where we normally are (year to date), but I contribute some of that to the fact that it was an election year. There was a lot of turmoil going on, and it was brutally, brutally cold for about 10, 11 days. We’re used to that here in the plains, but this was brutal... but it seems to be picking up now and I will say that when it comes to inventory for new Chevy or new GMC, we’re probably in a better place than we have been in a long time. So, we’re all keeping our fingers crossed and hoping that these tariffs don’t affect us too much.”

Ah yes, the tariffs.
President Trump’s early trade platform has contained a substantial dose of tariffs, which in simple terms, are taxes imposed by a government on goods imported from other countries. Trump has declared that, starting April 2nd, there will be a 25 percent tariff on any vehicles or car parts that are imported from Canada and Mexico.

Jessica Caldwell, head of insights at industry research firm Edmunds, tells CBS News that these tariffs will be a spreadsheet nightmare.

“A lot of the vehicles are final-assembled in the United States, but get engines and transmissions from Mexico and Canada… If you look across the entire industry, there’s nothing that’s 100 percent American.”
The president initially installed the tariffs on March 4, but a day later, he issued a one-month delay for U.S. manufacturers after talking to leaders from the Big Three automakers: Ford, General Motors, and Stellantis. He later issued a pause until April 2nd on all imports from Canada and Mexico that are covered by the United States-Mexico-Canada Agreement.

Analysts at Wolfe Research project the tariffs would add about $3,000 on average to the cost of a vehicle, and around $7,000 on models imported from Canada or Mexico.

At Red Rock Ford in Williston, General Manager JC LaBar has heard a lot of questions about the tariffs.
“The number one question has been the tariffs. We’ve been watching that closely, waiting to see what happens early in April.”
With tariff talks uncertain, customers are left with no clear answers. As LaBar put it, “We just really don’t know,” leading many buyers to focus on inventory already available in stock rather than placing new orders.

Balogh agrees.
“I personally have customers that buy from me every year, and that is one of the first questions: ‘Hey, if I order this vehicle and it takes six, eight, or twelve weeks, are they going to increase the price because of the tariffs?’”

Unfortunately, Balogh says, there are no clear answers.
“That’s up to the administration and what other countries are going to do. We hope for the best, but for now, we steer them to vehicles already in stock or we can do a dealer trade… People are holding off, and that affects the flow of new car sales. Everyone is waiting for some clarity.”

LaBar says while he hears a lot of questions about tariffs, his customers don’t seem to be worried that they will affect the domestic economy.

“I’ll be honest with you, in my estimation, I don’t think we’re going to see it. I think Trump is going to back off on tariffs, especially on the auto industry. He doesn’t have interest in hurting the domestic auto manufacturers. I don’t really foresee there being heavy tariffs on that and as a matter of fact, I literally haven’t heard anything, so until that actually happens and it starts to affect vehicle pricing, I really don’t think that’s going to be a factor for anybody.”

Johnson says he hasn’t heard much conversation about tariffs in Watford City either, nor have customers been deterred by elevated interest rates when financing is needed.

“Things have come down. It was drastically higher throughout last year, and with Chrysler, Dodge, Jeep, and Ram right now, you can get something like 1.9 percent APR on a brand-new half-ton truck. So, 1.9 percent for 72 months is a great deal. And going through all the banks we have in our system, I’ve seen five and six percent, so definitely not like last year when it was the norm to see 10-12 percent.”

Johnson’s story was echoed by LaBar.
“A lot of manufacturers are putting incentives and rebates out there, which has helped tremendously,” he says.
The shift toward SUVs and trucks has been another key industry trend in 2025, with Ford’s shift away from sedans in favor of larger vehicles aligning with consumer demand. LaBar explained that the current focus at his dealership is on trucks and SUVs, especially given Ford’s focus on these segments.

“Ford quit making sedans some time ago,” he noted, “and in this market, the trucks and SUV’s is really what we sell. About 64 to 66 percent of our sales are trucks,” LaBar noted, pointing to the region’s ongoing preference for larger vehicles. These vehicles remain popular, driven in part by the region’s oil patch, where trucks are considered essential tools for work and leisure.

LaBar also mentioned that, while fuel efficiency is on customers’ minds, it is not the primary concern for most buyers. “We don’t get the same questions as people on the West Coast,” he said. “It’s more about the monthly payment and down payment requirements.”
Balogh noted that vehicles like the Yukon XLs, Suburbans, and Tahoes remain incredibly popular in the region. “We don’t get a lot of folks asking, ‘What’s the gas mileage on that?’ They just want a vehicle that works for them,” he said.

Electric vehicles (EVs), which have garnered significant attention elsewhere, have not yet found significant traction in northwest North Dakota. Balogh explained that local buyers are still primarily focused on traditional internal combustion engine vehicles, particularly those that cater to the needs of families and workers.

“We don’t have a lot of folks asking about EVs,” he said. “Here, it’s about needing a pickup truck for work…I’m not against EVs. I’m not against windmills or alternative energy either, but here in our area, we still need a pickup truck - not just for work, but also for personal use. A lot of our customers consider their truck a tool.”

Balogh also addressed the question of manufacturer mandates for specific vehicle models. “When manufacturers have availability of certain models, they encourage us to take them, even if they’re not our bread and butter,” he explained. “For example, Buick wanted to go all-electric, but our dealer said ‘We’re in the oil patch here and we don’t have a lot of folks coming in and asking for that.’ Buick’s a great, great product, but he decided to move on without that particular line. So basically, we are Chevy and GMC now, and there are electric vehicles in those categories, but we just don’t carry them.”

As far as pricing is concerned, Johnson says manufacturers are getting more aggressive on sticker prices, which is good news for buyers.

“They’ve actually been writing all the MSPs (Manufacturer Suggested Prices) back and they’re continuing to do so. I have stuff on the ground right now that I’m selling below cost. As a matter of fact, if you drive by the front, it says on our message board that we will sell you any new vehicle at cost. And I’m not afraid of that. So, they’ve been marking all these MSPs down and they’ve been doing a big volume push, which is great for consumers and really makes it a best time to buy…Like on a new HD diesel, they’re probably about $8,000 - $10,000 cheaper than a year ago.”

Inflation pressures and tight budgets have caused a headwind for the service industry. CARFAX, a vehicle information service, reports that many Americans are falling behind on routine maintenance, with more than 30 million cars on the road that are behind on both oil changes and tire rotations. The company noted that neglecting such repairs is not only dangerous, but costly.
Balogh says he sees it, too.

“We have noticed over the last 60 days that people are holding off a little longer on getting things like oil changes or tire replacements, especially if their vehicle is under warranty. For pre-owned cars, we see people delaying repairs on items like wiper blades, tune-ups, or tires.”

Johnson says that in Watford City, the demand is about equal for used and new vehicles. And he believes both lines should remain strong because customers are optimistic following the 2024 elections.
“In our area, I would say I hear people talking that they feel better about things and are a lot more comfortable with moving forward.”

And when it comes to personnel, Johnson tells a story that very few hiring managers are sharing these days.
“It’s actually been amazing. I’ve had an influx of people wanting to come to work here, and believe it or not, but the little Watford City CDJR (Chrysler, Dodge, Ram, Jeep) store actually ranked number one in service last year out of our whole district; I want to say it’s about nine states… We have people that are attracted to come to work here. I’ve picked up three very, very experienced technicians in the last three weeks from Billings, Miles City, and Bozeman, Montana. I’ve had people start literally this month from all three of those places. So, I can’t complain there. And we’re staffed up and ready to start rocking and rolling.”

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