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Miami Herald
10-05-2025
- Automotive
- Miami Herald
Toyota makes a disturbing announcement about tariffs
Ever since President Trump announced the details of his tariff plan on April 2, companies across the U.S. have been grappling with the consequences of how their businesses will be affected by them. Several CEOs have already spoken out about the costs they will face because of the tariffs, including Apple CEO Tim Cook, who said it will cost the company $900 million this quarter alone. Cook has also said Apple will shift all iPhone manufacturing to India, as the phones were previously manufactured in China. Don't miss the move: Subscribe to TheStreet's free daily newsletter General Motors also forecasted taking a $5 billion hit this year, while chipmaker Nvidia is taking a $5.5 billion charge to address higher import costs. Some companies have not spoken out about what tariffs are costing them, but they have announced some changes in the pricing of their products. Related: Apple CEO sends blunt message on tariffs impact Ford is one company that's been forced to take action in response to tariffs, planning price hikes on the Mustang Mach-E electric SUV, Maverick pickup truck, and Bronco Sport SUV by as much as $2,000 on some models. Ford says that despite the increase, it's still not passing the full brunt of the price hike on to its customers. Now Toyota (TOYOF) is the latest company to speak out about the costs it's facing because of tariffs, and the news is not good. During a press briefing held on Thursday, May 8, Toyota president Koji Sato announced that the company expects tariffs to cost it $1.3 billion for April and May alone. While Toyota manufactures its vehicles in many location around the world, many are made in Japan, where the company originated. Japan is under a 24% tariff that is on pause, but is also subject to Trump's 25% tax on aluminum, steel, and auto exports, which is currently in effect. Related: Ford announces desperate move to battle tariffs Sato did not make any forecasts on the financial future of Toyota, saying that impact would be very difficult to forecast. However, he offered some words of comfort for those who may be worried Toyota vehicles, known for their affordability, will go up in price. Sato did not address the subject of price hikes directly, saying that Toyota would look at the situation and take "the appropriate action at the appropriate timing." "Just because of tariff rising prices, [hasty] is not the type of reaction Toyota is thinking of," Sato said. While Toyota didn't say anything specific about pricing changes to its vehicles, the likelihood for price increase in the automotive industry as a whole is high. The least-impacted vehicles will still face a $2,000 tariff and the most impacted will see a tariff of $15,000, according to a recent report from Anderson Economics Group. Those prices could also vary. Wedbush Securities analyst Dan Ives believes the price of a typical car could go up between $5,000 and $10,000. While CEO Elon Musk has openly said that Tesla will still be affected by tariffs, the EV company will be the best off in the industry when it comes to them. Teslas are made up of 81% domestic content. Certain Ford, Honda, and Jeep models also rank highly on domestic content, which could mean they are least likely to jump in price. General Motors, however, is in a bad position. The U.S. car company only makes 45% of vehicles within the U.S., meaning the rest of its cars are fully vulnerable to tariffs. Related: Tesla robotaxi launch is destined for failure, bullish analyst says The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Epoch Times
07-05-2025
- Automotive
- Epoch Times
Ford Hikes Mexico-Built Vehicle Prices as Tariffs Take Hold, But Keeps Discount Through July 4
Ford Motor Co. has increased prices on several Mexican-built vehicles by $600 to $2,000, citing a combination of standard midyear pricing adjustments and new U.S. auto tariffs. The price hikes apply to the Maverick pickup, Bronco Sport SUV, and Mustang Mach-E crossover, with affected vehicles expected to reach dealerships in late June, a company spokesperson told The Epoch Times in a written statement. 'This is our usual mid-year pricing actions combined with some tariffs we are facing,' said Ford spokesman Said Deep. 'We have not passed on the full cost of tariffs to our customers. Our approach throughout this evolving situation continues to be doing what's right for our customers–and our business.' Ford has not disclosed how much of the price hike can be attributed to the Trump administration's new tariff policy, which imposes a 25 percent levy on many foreign-built vehicles and parts. Despite the added costs, Said noted that Ford is 'While we amended prices, this does not impact vehicles in dealer inventory,' the spokesperson said. 'Our employee pricing program–From America, For America—continues through July 4th and our dealers have great stock and plenty of vehicles for our customers to choose from.' The move comes as Ford on Monday Related Stories 5/2/2025 5/1/2025 Executives said higher U.S. content gives Ford a competitive edge under the new tariff policy, which targets foreign-built vehicles and parts. Ford CEO Jim Farley 'It's still too early to fully understand our competitors' responses to these tariffs,' Farley said on the call. 'It's also early to gauge the related market dynamics, including the potential industrywide supply chain disruptions and the impact of Ford's domestic manufacturing advantages. And as a result, we've decided to suspend our guidance. 'It's clear, however, that in this new environment ... automakers with the largest U.S. footprint will have a big advantage, and boy, is that true for Ford. It puts us in the pole position.' Ford on Monday On the call with analysts, Farley said Ford is evaluating near-term steps to boost the use of U.S.-made parts across its lineup, including the F-150, Mustang, Taurus, and electric and hybrid models. As part of that shift, Ford has halted vehicle exports to China but will continue using the country as a trade hub for countries in the Asia-Pacific region and other markets with favorable U.S. trade ties. 'Looking ahead, even though nearly 80 percent of our parts that we use in the U.S. are USMCA compliant, we are looking for opportunities where it makes sense to develop local supply chains,' Farley said. 'Relative to adding manufacturing capacity in the U.S., for Ford, this is a continuation, not a course correction.' President Donald Trump has said that one of the objectives of the new tariff policy is to encourage domestic manufacturing.
Miami Herald
07-05-2025
- Automotive
- Miami Herald
Ford increases prices on Mexico-built vehicles after tariff hike
Business Ford increases prices on Mexico-built vehicles after tariff hike Ford Motor Co. is increasing prices on its Mexico-built vehicles by as much as $2,000, becoming one of the first automakers to announce a price hike because of tariffs. Changes on dealer invoices became effective May 2 on the Maverick small pickup, Bronco Sport SUV and Mustang Mach-E all-electric crossover, according to the memo obtained by The Detroit News. That means affected vehicle will arrive on dealership lots in late June, the company confirmed. The Dearborn automaker attributed the hike to usual midyear pricing action as well as tariffs. "We have not passed on the full cost of tariffs to our customers," Ford spokesperson Said Deep said in an email. "Our approach throughout this evolving situation continues to be doing what's right for our customers - and our business." Ford last week extended its "From America, For America" employee discount pricing campaign launched in early April through the July 4 weekend. That program remains in place and is available on the Mexico-built vehicles. Ford previously had communicated price increases could be coming on May production in the absence of material changes on tariff policy. But Trump last week announced changes to his auto tariffs, preventing certain duties from stacking on top of them and offering credits on imported parts for manufacturers assembling vehicles in the United States. Still, 25% import taxes on more than 100 categories of auto parts, from engines and steering wheels to hinges and more began being collected on Saturday after a 25% levy on imported vehicles took effect in early April. Ford this week estimated it's exposed to $2.5 billion in tariff costs in 2025, but expects to offset about $1 billion of that. "We have to watch what our competitors do," Ford CEO Jim Farley said last week about pricing increases following Trump's tariff adjustments. "That's the key. Half the industry in the U.S. is imported, and they have $5,000 to $10,000 costs. Will they just absorb those? Will they pass them on to customers? That will be a big decision, because the pricing decision is a competitive decision." Analysts have warned that automakers won't be able to absorb all of the costs created by tariffs, and it will result in price increases for U.S. consumers, which could affect demand and production of new vehicles. The East Lansing-based Anderson Economic Group has projected price increases from $2,000 to $15,000 per vehicle. Certain Maverick trims will see an increase of up to $1,150 on their manufacturer's suggested retail price as well as a $100 hike in destination fee and increases on certain options. Bronco Sport's increase is up to $1,200 on the Outer Banks model, and certain packages also are more expensive. Mach-E's increase is up to $2,000 with certain options also seeing an increase. In April, Maverick sales rose 67%, Bronco Sport increased 55% and Mach-E fell 40% with the company citing low inventory ahead of a model changeover. Ford Chief Financial Officer Sherry House this week said to offset tariffs, Ford has begun using bonded trucks transporting vehicles and parts from Mexico to Canada through the United States, stopped shipments to China because of retaliatory levies and adjusted production of the China-built Lincoln Nautilus. But no production changes had been made to plants in Mexico, she said. The company also expects that because 80% of the vehicles it sells in the United States are built here, it has the opportunity to increase market share from companies more exposed to the import taxes. Reuters first reported on the price increases. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers. This story was originally published May 7, 2025 at 1:02 PM.
Chicago Tribune
07-05-2025
- Automotive
- Chicago Tribune
Ford increases prices on Mexico-built vehicles after tariff hike
Ford Motor Co. is increasing prices on its Mexico-built vehicles by as much as $2,000, becoming one of the first automakers to announce a price hike because of tariffs. Changes on dealer invoices became effective May 2 on the Maverick small pickup, Bronco Sport SUV and Mustang Mach-E all-electric crossover, according to the memo obtained by The Detroit News. That means affected vehicle will arrive on dealership lots in late June, the company confirmed. The Dearborn automaker attributed the hike to usual midyear pricing action as well as tariffs. 'We have not passed on the full cost of tariffs to our customers,' Ford spokesperson Said Deep said in an email. 'Our approach throughout this evolving situation continues to be doing what's right for our customers — and our business.' Ford last week extended its 'From America, For America' employee discount pricing campaign launched in early April through the July 4 weekend. That program remains in place and is available on the Mexico-built vehicles. Ford previously had communicated price increases could be coming on May production in the absence of material changes on tariff policy. But Trump last week announced changes to his auto tariffs, preventing certain duties from stacking on top of them and offering credits on imported parts for manufacturers assembling vehicles in the United States. Still, 25% import taxes on more than 100 categories of auto parts, from engines and steering wheels to hinges and more began being collected on Saturday after a 25% levy on imported vehicles took effect in early April. Ford this week estimated it's exposed to $2.5 billion in tariff costs in 2025, but expects to offset about $1 billion of that. 'We have to watch what our competitors do,' Ford CEO Jim Farley said last week about pricing increases following Trump's tariff adjustments. 'That's the key. Half the industry in the U.S. is imported, and they have $5,000 to $10,000 costs. Will they just absorb those? Will they pass them on to customers? That will be a big decision, because the pricing decision is a competitive decision.' Analysts have warned that automakers won't be able to absorb all of the costs created by tariffs, and it will result in price increases for U.S. consumers, which could affect demand and production of new vehicles. The East Lansing-based Anderson Economic Group has projected price increases from $2,000 to $15,000 per vehicle. Certain Maverick trims will see an increase of up to $1,150 on their manufacturer's suggested retail price as well as a $100 hike in destination fee and increases on certain options. Bronco Sport's increase is up to $1,200 on the Outer Banks model, and certain packages also are more expensive. Mach-E's increase is up to $2,000 with certain options also seeing an increase. In April, Maverick sales rose 67%, Bronco Sport increased 55% and Mach-E fell 40% with the company citing low inventory ahead of a model changeover. Ford Chief Financial Officer Sherry House this week said to offset tariffs, Ford has begun using bonded trucks transporting vehicles and parts from Mexico to Canada through the United States, stopped shipments to China because of retaliatory levies and adjusted production of the China-built Lincoln Nautilus. But no production changes had been made to plants in Mexico, she said. The company also expects that because 80% of the vehicles it sells in the United States are built here, it has the opportunity to increase market share from companies more exposed to the import taxes.
Yahoo
17-04-2025
- Automotive
- Yahoo
Ford Warns of Price Hikes as Trump Tariff Uncertainty Lingers
Ford Motor Company F is preparing to increase prices on vehicles starting with those produced in May 2025 if President Donald Trump doesn't follow through on the tariff relief he's suggested for a memo sent to dealers by Andrew Frick, president of Ford's gas-powered and electric car divisions, the company anticipates it will need to adjust vehicle pricing unless there's a significant shift in Trump's tariff stance. These pricing changes would apply to vehicles built in May, which won't reach U.S. dealerships until late June or early July, after Ford's current employee-pricing-for-everyone promotion ends. The prices of vehicles already in inventory will remain unchanged. This warning marks the clearest indication yet that automakers may pass on some of the increased costs tied to Trump's 25% tariffs on imported vehicles. It comes just two days after Trump mentioned that he was considering a temporary break from the tariffs to allow carmakers more time to shift production back to the United States. Trump is also expected to impose similar duties on certain imported car parts by May Ford is still working to understand the full scope of Trump's trade policies, it expects some tariffs will stay in place for the foreseeable future. Detroit automakers have been actively lobbying the White House for exemptions on parts they argue are critical and would otherwise cause serious financial Ford manufactures 80% of the vehicles it sells in the United States at domestic plants, it builds most budget-friendly models, the electric Mustang Mach-E, the Maverick small pickup and the Bronco Sport SUV in Mexico. Ford has already been struggling with stiff competition, pricing pressure and significant costs associated with new-generation EV development. After having incurred losses of $4.7 billion in its EV business in 2023, Ford's loss from Model e widened to $5.07 billion in 2024. Discouragingly, the company expects segmental loss in the range of $5-$5.5 billion in 2025. The automaker's full-year adjusted EBIT is forecasted between $7 billion and $8.5 billion, down from $10.2 billion in 2024. Notably, Ford's weak guidance doesn't even take into account any changes in policies from the Trump administration. These tariffs are expected to increase raw material costs and finally translate to a high cost of vehicles, thereby derailing demand and affecting the sales and profits of Ford. High tariffs could impact General Motors Company's GM results as the company imported roughly 750,000 vehicles from Canada/Mexico in 2024. The higher tariffs would not only affect fully assembled vehicles but also the cost of parts sourced from Mexico, further escalating production costs for GM's U.S.-based plants. Tariffs on steel and aluminum could raise Tesla, Inc.'s TSLA vehicle costs, hurting affordability or squeezing margins. If tariffs on Mexico and Canada are enacted, supply chain disruptions could add further pressure. With these tariffs, the cost of vehicles is expected to rise, and affordability issues could weigh on demand. If Tesla absorbs additional costs, it will further strain its already squeezing margins. Either way, these tariffs will put pressure on Tesla. Ford shares have lost 22.1% in the past year, underperforming the Zacks Auto, Tires and Trucks sector's decline of 4.3% and the Zacks Automotive - Domestic industry's growth of 14.1%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for F's 2025 sales and earnings indicates a year-over-year decline of 5.12% and 27.17%, respectively. The Zacks Consensus Estimate for its earnings has moved down over the past 30 days. Image Source: Zacks Investment ResearchF stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
