Can Ford's US Muscle Shield It From the Tariff Crossfire?
Ford Motor Company F is anticipating pressure built from tariffs in the upcoming periods. The industry-wide supply chain is yet to wholly grasp the impact of tariffs on production, changes in the implementation of tariffs and retaliatory tariffs. In this context, Ford announced its prediction of a net adverse adjusted EBIT impact of about $1.5 billion for 2025. It logged $1 billion adjusted EBIT in the first quarter of 2025, but due to prevailing instability in the industry, guidance has been withdrawn.
Although there remains uncertainty, Ford, being one of the largest auto manufacturers in the United States, might expect certain advantages. Ford, compared with its competitors, built 300,000 more vehicles in the United States last year. This provides the company with a competitive edge. Its peers will face difficulties in increasing manufacturing capacity in the country, as that would entail huge costs, compromising affordability. Ford's 80% parts in use are already USMCA trade rules compliant. The company seeks other ways to build more parts locally.
It has also implemented smart changes to tackle impacts. Ford now ships vehicles from Mexico to Canada using bonded carriers, which avoids U.S. tariffs. A similar strategy is also followed for auto parts that only travel through the United States. Ford seems confident as it has been building more in America since 2020, investing $50 billion to grow vehicle and battery production.
Peer Comparison
General Motors Company (
GM
), an auto giant of America, has predicted declines in profit this financial year. It imported the highest number of cars into the United States in the last year. General Motors lowered guidance owing to an estimated $4 million to $5 million exposure to the impacts of auto tariffs. However, a mitigation of 30% of cost increases due to tariffs can be expected through General Motors' tailored initiatives.
Stellantis N.V. (
STLA
), another multinational automaker, is also suspending its guidance for fiscal 2026 amid tariff-related challenges. Stellantis has plans to reassess its capital spending strategies. The company has also brought down its vehicle imports in April in response to tariffs. Stellantis, along with other giants, is working with the government to soften the auto tariff woes.
The Zacks Rundown for Ford
Shares of Ford have lost around 5.1% over the past year against the industry 's growth of 20.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.26, below the industry average. It carries a Value Score of A.
Take a look at how Ford's EPS estimates have been revised over the past 30 days.
Ford currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ford Motor Company (F): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Stellantis N.V. (STLA): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
30 minutes ago
- CTV News
As Musk's ‘robotaxi' rollout approaches, Democratic lawmakers in Texas try to throw up a roadblock
Elon Musk listens as President Donald Trump speaks during a news conference in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci) NEW YORK — A group of Democratic lawmakers in Texas is asking Elon Musk to delay the planned rollout of driverless 'robotaxis' in the state this weekend to assure that the vehicles are safe. In a letter, seven state legislators asked Tesla to wait until September when a new law takes effect that will require several checks before autonomous vehicles can be deployed without a human in the driver's seat. Tesla is slated to begin testing a dozen of what it calls robotaxis for paying customers on Sunday in a limited area of Austin, Texas. 'We are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025,' the letter from Wednesday, June 18, reads. 'We believe this is in the best interest of both public safety and building public trust in Tesla's operations.' It's not clear if the letter will have much impact. Republicans have been a dominant majority in the Texas Legislature for more than 20 years. State lawmakers and Republican Gov. Greg Abbott have generally embraced Musk and the jobs and investment he has brought to Texas, from his SpaceX rocket program on the coast, to his Tesla factory in Austin. The company, which is headquartered in Austin, did not responded immediately to a request for comment from The Associated Press. The law will require companies to secure approval from the state motor vehicles department to operate autonomous cars with passengers. That approval, in turn, would depend on sufficient proof that the cars won't pose a high risk to others if the self-driving system breaks down, among other reassurances. Companies would also have to file detailed plans for how first responders should handle the cars if there is a problem, such as an accident. The letter asked Tesla to assure the legislators it has met all the requirements of the law even if it decides to go ahead with the test run this weekend. The letter was earlier reported by Reuters. Musk has made the robotaxi program a priority at Tesla and a failure would likely be highly damaging to the company's stock, which has already tumbled 20% this year. Musk's political views and his affiliation with the Trump administration have drastically reduced sales of Tesla, particularly in Europe, where Musk's endorsement of Germany's far-right Alternative for Germany party in February's election drew broad condemnation. Tesla shares bottomed out in March and have rebounded somewhat in recent months. Much of the rise reflects optimism that robotaxis will not only be deployed without a hitch, but that the service will quickly expand to other cities and eventually dominate the self-driving cab business. Rival Waymo is already picking up passengers in Austin and several other cities, and recently boasted of surpassing 10 million paid rides. In afternoon trading Friday, Tesla shares were largely unchanged at US$320. --- Bernard Condon, The Associated Press AP reporter Jim Vertuno contributed from Austin.
CTV News
39 minutes ago
- CTV News
Don't regulate us like radio, music streamer Spotify tells CRTC
A trading post sports the Spotify logo on the floor of the New York Stock Exchange on Tuesday, April 3, 2018. (AP Photo/Richard Drew, File) OTTAWA — Music streamer Spotify says Canada's federal broadcast regulator shouldn't impose rules meant for radio on streaming services. Appearing before a CRTC hearing today, company representatives compared regulating Spotify like a radio station to treating Uber like a horse and buggy. In its written submission, Spotify argued the CRTC doesn't have the jurisdiction to extend rules governing commercial negotiations and disputes in the broadcast sector to online players. The CRTC is holding a hearing on market dynamics as part of its work to implement the Online Streaming Act, which updated broadcasting laws to capture online platforms. During previous hearings, large cable and broadcasting companies like Bell and Rogers called on the CRTC to loosen existing rules for traditional players. They're taking aim at regulations governing how cable channels must be packaged and disputes about carriage of cable channels. This report by The Canadian Press was first published June 20, 2025 Anja Karadeglija, The Canadian Press
CBC
an hour ago
- CBC
VIA Rail and Unifor reach tentative agreement, avoiding a strike
Via Rail has reached a tentative deal with the union representing 2,400 of its workers across the country, the Crown corporation said on Friday. The deal averts a walkout involving members of Unifor, who had voted for a strike mandate to be exercised as early as Sunday. Unifor says the tentative agreement offers gains in wages, job security and working conditions. The union represents workers at VIA Rail stations, maintenance centres, the customer care centre, in administrative offices and on board trains. Unifor didn't release details of the deal, preferring to first inform its members at meetings scheduled over the coming weeks. VIA Rail has said it was committed to a fair and reasonable agreement while remaining competitive and providing quality service. The two parties had broken off contract talks earlier this month, setting the stage for a potential strike.
