Ford and Stellantis Adjust Strategies Amid New Auto Tariffs
Amid President Trump's new tariffs, Ford launches a discount initiative while Stellantis pauses production at Mexican plants and expands employee pricing to consumers.
The auto sector is critical in Mexico, generating nearly one million jobs and representing around 5% of the gross domestic product and 32% of Mexico’s exports.
US tariffs ripple through auto supply chains into Mexico
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Stellantis is following Ford in offering an employee discount to the public this month as President latest round of auto tariffs takes effect.
Stellantis offers employee discount to US buyers as auto tariffs take effect
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The manufacturer offered the discounted prices on the same day President Donald Trump’s 25 percent tariffs on foreign vehicles took effect, CBS News reported.
‘A Handshake Deal’: Ford Motor Company Gives US Buyers Employee Discount
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Shutdowns will add further pressure to the supply of cars, which also means higher prices, said Mactavish.
New and Used Car Prices Set to Rise Due to US Tariffs: Experts
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Tariffs add on to the costs of an EV transition that was already volatile and uncertain.
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The measures, which were separate to Trump's sweeping new tariffs on major trading partners, have hit the global automotive industry hard.
Price hikes, layoffs and import fees: How car giants are reacting to Trump’s tariffs
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Though the industry is growing, tariffs mean costs for automakers and their buyers will stay high and might go higher, as well as hike up the prices of the many parts of EVs still coming from China and elsewhere.
US EV industry collateral damage in Trump's escalating trade war
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Ford's catchphrase for this effort is clever, too, with its website blaring "EMPLOYEE PRICING — Ford Motor Company. From America. For America."
Ford's bold move: Employee pricing opens to all amid tariff turmoil
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Ford Motors announced new discounted pricing for prospective customers Thursday, on the heels of President Donald Trump's sweeping tariff plan, which includes a 25 percent tariff on auto imports.
Ford is now offering buyers its employee pricing amid Trump tariffs
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American manufacturers may benefit from these America First trade policies as Ford assembles more vehicles in the United States and exports more automobiles than any other automaker from the country.
Trump Cheers Ford's 'Great Ad' Touting How Most Vehicles Are Assembled in the United States
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Summary
Ford Motor Company has initiated a pricing strategy for U.S. customers entitled "From America, For America," effective until June 2, in response to President Trump's 25% tariffs on auto imports. The move comes as the company grapples with rising EV adoption, projected at 8% of sales in 2024. Meanwhile, Stellantis has paused production at its Toluca plant in Mexico, resulting in 900 temporary layoffs at U.S. facilities. Mexican officials assert that the country’s auto production is likely to avoid tariffs due to its free trade agreement with the U.S. and Canada. Both companies aim to adapt their market strategies to these evolving economic challenges.
Perspectives
Ford's new pricing strategy responds to tariffs and reflects increased costs impacting all automakers, especially in the context of the evolving electric vehicle market.
While Ford's pricing incentives may temporarily help drive sales, it's anticipated that tariffs will lead to sustained higher vehicle prices, pushing consumers either towards used options or deferring purchases altogether.
The impact of Trump's tariffs on the automotive industry raises concerns about the viability of ambitious EV plans, with rising costs jeopardizing investments in U.S. manufacturing and innovation.
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