Good day all. Recently, President Trump imposed across the board tariffs on imports. This is going to hit a lot of car companies that have moved their production out of the United States. One company appears to have been ready for this. Ford Motor Company.
Ford has maintained most of their production in the United States. (I think they have some 30% that might be affected by the tariffs) Recently, Ford announced that it is going to offer what they call “Employee Pricing” to purchasers on a number of their cars. Here are the details from the Epoch Times:
Ford Motor Co. announced on Thursday that it will extend its employee pricing to all shoppers in the wake of widespread tariffs that were announced by President Donald Trump, including 25 percent duties on foreign-made cars that went into effect on Thursday.
Framing its announcement as a way to mitigate “uncertain times for many Americans,” Ford said that it’s opening its “employee pricing to all U.S. customers, giving them access to significant savings on a wide range of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles.”
Of course, there is a caveat. Not all of their products will be available under this program.
However, Ford’s pricing change excludes Ford Raptor models, specialty Bronco and Mustang models, its 2025 Expedition and Navigator SUVs, and its Super Duty trucks.
Those are very high end models, especially the Raptor versions of the Ford F150 and Bronco vehicles. (Think base models starting at $100K) To be honest, if you can afford one of the high end models, you really don’t care all that much about the costs and won’t mind paying the tariff on an imported car.
“For potential electric retail customers, the employee pricing is on top of the Ford Power Promise, further extended through June 30. This includes a complimentary home charger and standard installation with a Ford electric vehicle to wake up charged and ready to go every morning,” the statement said.
Ford has been taking a bath on their EV products. No one wants them. People quickly found out that the EV version of the Ford F150 sucked when it was carrying cargo or towing a trailer. (EV’s are a dead end technology in any case)
The Michigan-based automaker builds 80 percent of its American-sold vehicles domestically, providing it a greater buffer from Trump’s tariffs than some competitors. However, it still faces the prospect of steep levies on imported vehicle parts.
I suspect that Ford is already looking to source those parts domestically.
Trump last week announced 25 percent tariffs on all auto imports and parts, which went into effect Thursday. On Wednesday, Trump announced he would broaden all tariffs to a 10 percent baseline on all imports, with higher rates for the countries that had the worst tariffs against the United States. Ford shares fell following the tariff announcement, as did those of General Motors.
Actually, Ford’s stock price came back up last Friday. It’s actually on the low side in any case. (Now for some due diligence, I own shares of Ford Stock. I also own a Bronco)
European Union chief Ursula von der Leyen described the tariffs as a blow to the world economy and said her 27-member bloc would retaliate against the United States with its own tariffs. The Chinese communist regime also said it would retaliate.
Ursula von der Leyen is one of the Elitists working to end freedom in the European Union. She is on the board of directors of the World Economic Forum and has been going after American business that won’t toe the WEF/EU line on things like censorship. She also doesn’t seem to understand that the rules of the game have changed and that if push comes to shove, she is going to lose and badly.
As for China? They have some serious internal issues and have built their economy on exports. Both the EU and China block American imports anyway, protecting their own industries. (So much for free enterprise) Frankly, this is going to hurt the EU a lot more then it will the United States.
Aside from Ford’s decision, General Motors said in a statement Thursday that it would move to increase its production of light-duty trucks at its Fort Wayne, Indiana, assembly plant, saying that it will hire temporary workers for the plant, which will be part of “operational adjustments … to support current manufacturing and business needs.”
Here is an interesting detail that many people might not be aware of. A lot of foreign car manufacturers actually make their cars in the United States. The popular Toyota Tacoma was made in Texas up until 2021, but then moved to Mexico. Would anyone like to place bets on how fast they will move it back into Texas?
I’m going to be watching the Ford share price and might just buy more stock. The management has been looking to reduce their EV production since it’s a money pit, (They only did it due to extreme pressure from the Biden Maladministration), and I expect that their sales are going to increase in the next few months. It does look like someone was paying attention to what President Trump said he was going to do when he was running for reelection.
Thatisall
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