Latest news with #Farley
Business Insider
an hour ago
- Automotive
- Business Insider
Ford said it expects Trump's tariffs to set it back $2 billion and hand Japanese automakers a 'meaningful' edge
Ford is projecting a $2 billion bill due to the Trump administration's tariffs. That is $500 million higher than what it forecast last quarter. "Our tariff bill is $2 billion, and that's a net number," Farley said in an earnings call. The company had projected a tariff hit of $1.5 billion in its last quarter. Farley told analysts he expects automakers to adopt a regional rather than globalized approach toward their businesses. In addition to tariffs, Farley said the change is being driven by the rise of electric vehicles and new carbon regulations. "We increasingly see Europe, North America, and Asia becoming kind of regional businesses with tariff rates that are aligned for those three or four regions," Farley said. "This is quite a fundamental change," he added. Representatives for Ford and the White House did not respond to requests for comment from Business Insider. Farley said in an interview with Bloomberg on the same day that the Trump administration's reduced tariffs on Japan would give its Asian rivals a "meaningful" cost advantage. Last week, President Donald Trump said the US would lower its tariffs on Japan to 15% from 25%. The reduced tariffs, lower labour costs, and favorable exchange rates "really advantage their export," Farley said. A Kentucky-built Ford Escape could cost $5,000 more than a Japanese-made Toyota Rav4, while a Michigan-made Ford Bronco might be undercut by a Toyota 4Runner to the tune of $10,000, Farley added. Farley told Bloomberg that Ford is working with the Trump administration to "minimize our tariff expense so that we can get more competitive." "But the bottom line is our plan at Ford is not to compete in those commodity segments," he continued. This isn't the first time Farley has talked about the challenges Ford faces in the face of a new slate of tariffs. Farley said in an interview with Bloomberg earlier this year that Trump's 25% tariff on Canada and Mexico is a "windfall for South Korean and Japanese companies." "In our guidance, we can handle a couple of weeks of tariffs. If it goes beyond that, obviously, it will be billions and billions of incremental profit headwinds for the company," Farley told the outlet in February.
Business Insider
2 hours ago
- Automotive
- Business Insider
Ford said it expects Trump's tariffs to set it back $2 billion and hand Japanese automakers a 'meaningful' edge
Jim Farley, the CEO of Ford, said on Wednesday that the Trump administration's tariff policy will saddle the automaker with a $2 billion bill while benefiting its Japanese rivals. "Our tariff bill is $2 billion, and that's a net number," Farley said in an earnings call. The company had projected a tariff hit of $1.5 billion in its last quarter. Farley told analysts he expects automakers to adopt a regional rather than globalized approach toward their businesses. In addition to tariffs, Farley said the change is being driven by the rise of electric vehicles and new carbon regulations. "We increasingly see Europe, North America, and Asia becoming kind of regional businesses with tariff rates that are aligned for those three or four regions," Farley said. "This is quite a fundamental change," he added. Representatives for Ford and the White House did not respond to requests for comment from Business Insider. Farley said in an interview with Bloomberg on the same day that the Trump administration's reduced tariffs on Japan would give its Asian rivals a "meaningful" cost advantage. Last week, President Donald Trump said the US would lower its tariffs on Japan to 15% from 25%. The reduced tariffs, lower labour costs, and favorable exchange rates "really advantage their export," Farley said. A Kentucky-built Ford Escape could cost $5,000 more than a Japanese-made Toyota Rav4, while a Michigan-made Ford Bronco might be undercut by a Toyota 4Runner to the tune of $10,000, Farley added. Farley told Bloomberg that Ford is working with the Trump administration to "minimize our tariff expense so that we can get more competitive." "But the bottom line is our plan at Ford is not to compete in those commodity segments," he continued. This isn't the first time Farley has talked about the challenges Ford faces in the face of a new slate of tariffs. Farley said in an interview with Bloomberg earlier this year that Trump's 25% tariff on Canada and Mexico is a "windfall for South Korean and Japanese companies." "In our guidance, we can handle a couple of weeks of tariffs. If it goes beyond that, obviously, it will be billions and billions of incremental profit headwinds for the company," Farley told the outlet in February. On Wednesday, Ford's shares fell by nearly 1.6% in after-hours trading. The company's shares are up by 9.8% year to date.
New York Post
7 hours ago
- Automotive
- New York Post
Ford shares slide as automaker takes $800M hit from tariffs, cuts profit forecast
Ford Motor said Wednesday that US tariffs on imported vehicles, as well as materials like steel and aluminum, will likely cost more than expected for the year, and the automaker's shares slid about 3% in after-market trading. Ford reported that second-quarter results took an $800 million hit from tariffs, a less pronounced impact than some of its US rivals thanks to Ford's strong domestic manufacturing base. For the full year, the automaker lifted the higher range of its projected hit to gross revenues from tariffs by $500 million, to $3 billion. Ford CEO Jim Farley said the company is in daily contact with the White House, with an ultimate goal of reducing its tariff costs, especially on parts tariffs. 'We see there's a lot of upside depending on how the negotiation goes with the administration,' Farley said. Advertisement 3 Ford reported that second-quarter results took an $800 million hit from tariffs, a less pronounced impact than some of its US rivals thanks to Ford's strong domestic manufacturing base. Getty Images Chief Financial Officer Sherry House said Ford raised the projection because duties on Mexico and Canada have remained higher for longer than expected. She also cited elevated levies on aluminum and steel. The Dearborn, Mich., automaker also issued guidance for annual results on Wednesday, after suspending it in May to assess the impact of President Trump's tariffs. Advertisement Ford said it now plans to record full-year adjusted earnings before interest and taxes of $6.5 billion to $7.5 billion, down from its February 2025 projection of between $7.0 billion and $8.5 billion. For the latest quarter, the auto giant reported a 21% decrease in earnings per share to 37 cents, beating LSEG analysts' expectation of 33 cents. Ford recorded a net loss for the quarter of $36 million, which it said was primarily due to special charges related to cancellation of a three-row electric SUV, and field service actions from a $570 million recall. Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. The automaker has clawed away market share from rivals with aggressive discounting programs and a 'zero, zero, zero' campaign, which offers shoppers a $0 down payment, zero percent interest for 48 months, and zero payments for the first 90 days on most vehicles. 3 Ford CEO Jim Farley said the company is in daily contact with the White House, with an ultimate goal of reducing its tariff costs, especially on parts tariffs Getty Images for Reindustrialize Conference Advertisement 'The substantial revenue outperformance demonstrates Ford's pricing power, but margin compression suggests underlying cost pressures remain problematic,' CFRA Research analyst Garrett Nelson said in a note. Gasoline-powered vehicles notched a 15.5% increase in the quarter on the back of these deals. Hybrid offers were also popular with shoppers in the quarter. Ford said results for the quarter ending in June were $800 million lower because of Washington's tariffs. Competitor General Motors reported steeper tariff headwinds, with a $1.1 billion hit for the quarter, largely from imports on its entry-level Chevrolet and Buick models made in South Korea. GM has projected a $4 billion to $5 billion tariff impact for the year, with plans to offset 30% of that expense. Ford has said it expects to offset $1 billion of its gross tariff costs. Advertisement Jeep-maker Stellantis said tariffs were expected to add $1.7 billion in expenses for the year. The White House did not reply to an email requesting comment on the automakers' projections. In the past, Trump has said the levies will bring manufacturing power and jobs back to the US 3 Ford posted revenue of $50.2 billion for the quarter, up 5% from a year earlier. Bloomberg Ford boasts domestic production for around 80% of the vehicles it sells in the US, about 25% more than its two Detroit rivals, according to business analytics firm GlobalData's review of last year's imports. While this foundation has made it more resilient to tariffs, it still faces steep levies on aluminum, steel and copper that have rocked the industry. Additionally, executives have said that a pinched supply of rare earth magnets from China has disrupted production this quarter. Ford's EV investments and quality problems remained among its greatest challenges. Before tariffs hit, the automaker earlier this year said it expected to lose up to $5.5 billion on its EV and software business in 2025. It recorded a $1.3 billion operating loss on this segment for the quarter. Elimination of a $7,500 consumer tax credit in September is expected to additionally dampen EV sales growth. The automaker is also battling costly quality issues and an industry-topping volume of recalls. Reducing these problems has been a priority for Jim Farley since he took on the role in 2020.
The Guardian
9 hours ago
- Politics
- The Guardian
‘At 80, to be treated like a terrorist is shocking': arrested on suspicion of supporting Palestine Action
Palestine Action's co-founder has won a bid to bring a high court challenge over the group's ban as a terrorist organisation, which has made membership of or support for the direct action group a criminal offence punishable by up to 14 years in prison. About 200 people have been arrested on suspicion of publicly protesting in support for PA since it was banned. They include: Retired teacher Farley was picked up by police at a silent demonstration in Leeds for holding a sign that made a joke about the government's proscription of Palestine Action taken from an issue of the fortnightly satirical magazine Private Eye. He was arrested under section 12 of the Terrorism Act 2000, which he described as a 'pretty terrifying and upsetting experience'. Farley, who had never been arrested before, told the Guardian: 'I clearly wasn't any kind of physical threat.' The Private Eye editor, Ian Hislop, said the arrest was 'mind-boggling'. Retired teacher Sorrell, from Wells, Somerset, was arrested for holding a placard at a pro-Palestine rally in Cardiff, and she was held by police for almost 27 hours, during which officers forced their way into her house and searched it. She said officers removed 19 items from her home, including iPads, a Palestinian flag, books on Palestine, material related to Extinction Rebellion and the climate crisis, as well as drumsticks for – and a belt that holds – her samba drum. 'At 80, to be treated like a dangerous terrorist is deeply shocking. I've been very traumatised by this. Every morning I wake up feeling sick, nauseous. [I have] had to take anti-sickness pills,' she told the Guardian. Retired teacher Also from Wells and a friend of Sorrell, Fine was held for the same period of time. The women have been bailed until October. Their bail conditions prohibit contact with each other and spending any nights away from their homes. She said that during her detention officers refused to let her have the antibiotics she was taking for a serious gum infection, and failed to call her husband, who is recovering from cancer treatment, to tell him about her arrest, despite having agreed to do so. Retired priest Parfitt, from Henbury in Bristol, was arrested on the same day the group was outlawed. She was attending a demonstration in Parliament Square in London. She was sitting in a camp chair surrounded by other protesters, holding a placard stating her support for Palestine Action. As she was led away by police, she called the ban 'total nonsense' and said it symbolised a 'loss of civil liberties in this country', according to the BBC. Hinton is a retired magistrate; Baines is a former charity director Hinton and Baines were among eight people arrested by Devon and Cornwall officers at a peaceful demonstration. 'She's a pillar of the community, so it's a very brave thing for her to have done,' Baines said of Hinton. 'Part of why we were protesting is that this mission creep of laws against protests is really frightening people. This is about freedom of speech,' he told Cornwall Live. He added: 'We're not advocating for Palestine Action. We're resisting the proscription of Palestine Action. We're resisting the politicised use of terror laws to suppress a non-violent campaign of sabotage. We're resisting the criminalisation of peaceful protest because it's already being used to intimidate and threaten people just for having Palestine flags.'
The Guardian
12 hours ago
- Politics
- The Guardian
‘At 80, to be treated like a terrorist is shocking': arrested on suspicion of supporting Palestine Action
Palestine Action's co-founder has won a bid to bring a high court challenge over the group's ban as a terror organisation, which makes membership of, or support for, the direct action group a criminal offence punishable by up to 14 years in prison. About 200 people have been arrested on suspicion of publicly protesting support for PA since it was banned. They include: Retired teacher Farley was picked up by police at a silent demonstration in Leeds for holding a sign that made a joke about the government's proscription of the group Palestine Action taken from an issue of the fortnightly satirical magazine Private Eye. He was then arrested under section 12 of the Terrorism Act 2000, which he described as a 'pretty terrifying and upsetting experience'. Farley, who had never been arrested before, told the Guardian: 'I clearly wasn't any kind of physical threat.' The Private Eye editor, Ian Hislop, said the arrest was 'mind boggling'. Retired teacher Sorrell from Wells, Somerset, was arrested for holding a placard at a pro-Palestine rally in Cardiff, and she was held by police for almost 27 hours, during which officers forced their way into her house and searched it. She said officers removed 19 items from her home, including iPads, a Palestinian flag, books on Palestine, material related to Extinction Rebellion and the climate crisis, as well as drumsticks for – and a belt that holds – her samba drum. 'At 80, to be treated like a dangerous terrorist is deeply shocking. I've been very traumatised by this. Every morning I wake up feeling sick, nauseous. [I have] had to take anti-sickness pills,' she told the Guardian. Retired teacher Also from Wells and a friend of Sorrell, Fine was held for the same period of time. The women have been bailed until October. Their bail conditions prohibit contact with each other and spending any nights away from their homes. She said that during her detention officers refused to let her have the antibiotics she was taking for a serious gum infection, and failed to call her husband, who is recovering from cancer treatment, to tell him about her arrest, despite having agreed to do so. Retired priest Parfitt, from Henbury in Bristol, was arrested on the same day the group was outlawed. She was attending a demonstration in Parliament Square in London. She was sitting in a camp chair surrounded by other protesters, holding a placard stating her support for Palestine Action. As she was led away by police, she called the ban 'total nonsense', adding that it symbolised a 'loss of civil liberties in this country', according to the BBC. Hinton is a retired magistrate. Baines is a former charity director Hinton and Baines were among eight people arrested by Devon and Cornwall officers at a peaceful demonstration. 'She's a pillar of the community, so it's a very brave thing for her to have done,' Baines said of Hinton. 'Part of why we were protesting is that this mission creep of laws against protests is really frightening people. This is about freedom of speech,' he told Cornwall Live. He added: 'We're not advocating for Palestine Action. We're resisting the proscription of Palestine Action. We're resisting the politicised use of terror laws to suppress a non-violent campaign of sabotage. We're resisting the criminalisation of peaceful protest because it's already being used to intimidate and threaten people just for having Palestine flags.'
