The trucks are shown from a drone view after cleaning customs from the United States and entering the United States from Tijuana along the US Mexico border. Uu. In Otay Mesa Port in San Diego, California, USA. UU., April 2, 2025.
Mike Blake | Reuters
Detroit – As 25% tariffs from President Donald Trump in imported vehicles, executives of Ford motor He pressed to discover how to respond to the new levies.
While they and their industry counterparts are still trying to navigate the impacts, Ford decided to move quickly in an area offering an employee price program, called “from America, for the United States”, for US consumers.
Such programs have historically been controversial, since they sell near or lower vehicles than the prices of invoices for the dealers and eat margins of profits already adjusted for the retailers. But Ford decided that it was the right time to launch the program to promote its US operations, the largest among car manufacturers, and help sales amid consumer concerns and economic uncertainty due to Trump's tariffs.
“We understand that these are uncertain times for many Americans. Either sailing through the complexities of a changing economy or simply to need a reliable vehicle for your family, we want to help,” Ford said in a statement on Thursday morning announcing the program. “We have the retail inventory to do this and many options for customers who need a vehicle.”
It is an example of how some car manufacturers try to find “opportunity in chaos” or trying to “capitalize on the moment” in the midst of rates, as several industry analysts said to CNBC.
“I love it. I think it will boost sales,” said Ford Marc Mcever merchant, owner of Olathe Ford Lincoln, near Kansas City, Kansas. “It is really exciting to see Ford take a step forward and take the lead in this program. I think it's a great play … It is really a real business for the customer.”
Ford, who is helping retailers financially with the program, told the dealers a day before the tariffs enter into force on Thursday. He publicly announced the new program, which extends until June 30, hours after the encumbrances began.
Going to rates, Ford was also largely seen by Wall Street analysts as one of the best positioned car manufacturers due to its great American production footprint, specifically for trucks.
Ford shares was better than their rivals this week, closing the week by 1.4%. Compared to Chrysler Parent Stellantis lose 14.2% and General Motors falling 5.4% for the week.
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Others follow Ford's strategy, which is also assisted because vehicle prices and profits are higher from Covid pandemic. The Rival of Crosstown, Stellantis, announced on Friday a similar employee pricing program, while Hyundai Motor said it would not increase prices for at least two months to relieve consumers' concerns.
“It makes sense to try to capitalize on the moment,” said Erin Keating, executive analyst at Cox Automotive.
Keating points out that with Ford and Stellantis, the last of which is based in Europe, but has important operations and brands in the United States, is a reminder for consumers that they are “national” companies. Automobile manufacturers also have an inventory, including older models, which need to sell to give way to newer vehicles.
“Make room for these new vehicles to enter in the exhibition room and try to maintain that market share make a lot of sense,” Keating said. “Anyone who can exceed the price at this time, with the demand level, can hold on to their market share more time than others, and perhaps capture something of those who are not willing to meet the client where they are now.”
Ford and Stellantis brands such as Ram Trucks and Jeep have among the highest days of vehicle inventory supply in the automotive industry, according to Cox Automotive.
The two companies were also among the only important cars manufacturers this week to inform notable falls in the sales of vehicles of the first quarter. Stellantis was out of approximately 12%, while Ford decreased 1.3% compared to the previous year.
Cox reports that the average supply vehicles of national days was 89 days, while those brands were between 110 days and 130 days. The automotive industry has historically considered a supply of healthy days between 60 days and 80 days.
In the light of tariffs and fears due to potential price increases, the demand for vehicles has been high. Consumers went mass to the display rooms of dealers at the end of last month, since Trump confirmed that tariffs would arrive, which will lead to important sales gains for many car manufacturers.
A Ford Raptor truck is shown on sale at a Ford dealer on August 21, 2024 in Glendale, California.
Mario Tama | Getty images
Sales of new estimated vehicles from Cox Automotive in March reached 1.59 million units sold, significantly exceeding their prognosis and marking the best month for the volume of sales in four years.
“The last week, and including last weekend, was, with much, the best weekend I've seen in a long time,” said Hyundai Motor North America, Randy Parker's CEO, during a media call. “I have been doing this for a long time, a long time. So, I think many people hastened this weekend, especially to try to overcome rates.”
Selling now because future sales are not guaranteed could also help if there is a recession of the United States. JP Morgan increased Friday on Friday for a global and United States recession of 40% of 60% probability possibilities for the end of the year.
“Because the demand is there now, it makes sense [to offer consumer incentives] Because everyone says: 'I have to go looking for him now,' he could move on and reap the benefits now in case we enter a recession, “Keating said.
