Latest news with #JimFarley
Miami Herald
4 days ago
- Automotive
- Miami Herald
Major automaker considers tariff move that customers will hate
Many industries were able to breathe a sigh of relief after the U.S. Court of International Trade ruled 3-0 that President Donald Trump's Liberation Day tariffs exceeded the authorities granted him under the Constitution. But the automotive industry wasn't one of them. The automotive industry is one of the few whose 25% duties remain unchanged by Wednesday's ruling. Related: Ford CEO Jim Farley has a strong take on tariffs This is because the court ruled that the universal reciprocal tariffs he implemented exceeded what he could do under the emergency powers he invoked on April 2 to justify them. However, Section 232 of the Trade Expansion Act of 1962 gives the president the authority to tax the imports of products deemed to threaten or impair the national security of the U.S. While this authority is granted only after the Commerce Department investigates that specific industry, the Commerce Department, like all executive branch departments, answers to the White House. Moreover, the two lawsuits prompting Wednesday's ruling, one filed by five small businesses and the other by 12 different states, only challenged the president's authority under the International Emergency Economic Powers Act of 1977, not Section 232. So tariffs issued under that provision, like auto tariffs, are not affected by the ruling. Also, late Thursday, an appeals court stayed the ITC court's ruling, so tariffs are definitely here to stay for now. In light of this fact, at least one foreign car company may be reaching its breaking point. Image source: Bloomberg/Getty Images Korean automaker Hyundai could soon announce across-the-board price increases to combat the 25% duties being placed on auto imports. Hyundai is considering a 1% price increase to the suggested retail price of every model in its lineup starting as soon as next week, Bloomberg reported, citing sources familiar with the company's thinking. To avoid raising prices even more, the company will also likely raise shipping charges for supplies like floor mats and roof rails that are installed before the vehicles arrive at dealerships. Related: Another Japanese automaker takes drastic action on tariffs While the company officially said the move has nothing to do with tariffs, Bloomberg's sources said otherwise. Trump has been hard on companies that defy him and raise prices in response to tariffs. He has openly criticized Walmart recently, telling the company to "eat the tariffs" instead of passing the cost along to customers. He notified the company that he would "be watching" to make sure they didn't raise prices. Other auto companies, such as Ford and Toyota, have recently used language similar to Hyundai's to justify raising prices, saying that the move is consistent with their normal seasonal price adjustments. Hyundai is the third-largest auto importer in the U.S., importing 1.1 million cars from overseas last year. Toyota and, oddly enough, America's own General Motors, were the top auto importers last year, importing 1.2 million vehicles each. The auto industry is in a tough spot. Domestic producers have publicly cheered the tariffs, since they give them a leg up against the competition, which doesn't have the same production footprint in the U.S. But behind the scenes, they also face a ton of pressure on their bottom lines. Ford, GM, Stellantis, and others have all already pulled their guidance for the year due to a lack of visibility. Ford says tariffs will wipe $1.5 billion from its EBITDA. General Motors says tariffs could cost it $5 billion in EBITDA. Stellantis imported 564,000 vehicles last year, well ahead of Ford's 420,000 imports. Both imported fewer than half of the vehicles GM did last year. "Last year, we assembled over 300,000 more vehicles in the U.S. than our closest competitor. That includes 100% of all our full-size trucks," Ford CEO Jim Farley said during the company's last earnings call. "In this new with the largest U.S. footprint will have a big advantage, and boy, is that true for Ford," he added. "It puts us in the pole position." Related: Toyota moves production of popular US sedan to Britain The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
6 days ago
- Automotive
- Miami Herald
Toyota moves production of popular US sedan to Britain
President Donald Trump made tariffs the focal point of his administration's economic policy during the first year of his second non-consecutive term in office. Although the duties have been unpredictable and unpopular with much of the business community, they have not been issued entirely unilaterally. Ford CEO Jim Farley recently praised the administration for listening to him and other industry leaders while crafting its tariff policies. Multiple changes have been made to the 25% vehicle tariffs announced earlier this year. Related: Detroit automakers warn UK trade deal will hurt US auto industry Weeks ago, the administration softened the tariff impact through an executive order that provides auto companies with credits for up to 15% of the value of vehicles assembled domestically. However, on May 2, days after that executive order was signed, the 25% import tax on engines, transmissions, and other car parts went into effect. The tariff war has forced domestic and foreign automakers to reevaluate their supply chains and processes. Foreign automakers with strong sales and production presence in the States have an especially rough road to navigate. Japan exports about $41 billion of cars to the U.S. annually, so a 25% tariff is a big deal. Japanese automaker Toyota just made a decision that could save it from import taxes over the long run. Image source: MercurySable99, CC BY-SA 4.0, via Wikimedia Commons Toyota (TM) has 14 factories located in the United States that employ over 32,000 people. Toyota sold over 2.3 million vehicles in the U.S. last year, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S., according to Statista. So despite a U.S. production capacity that can handle nearly 2 million vehicles a year, Toyota still ships in nearly half a million vehicles from overseas to sell in the U.S. The Corolla GR is one of them. The high-performance car is currently built in Japan and exported to the North American market, where it is growing in popularity. In fact, Toyota hasn't been able to keep up with demand. Related: UK trade deal gives car buyers a glimpse of what the future holds To meet demand, Toyota will set up a production line at its Burnaston plant in Derbyshire, England to produce 10,000 annually to be exported to the U.S. Britain just so happens to be the first major trading partner to come to terms with the U.S. on a trade deal. In early May, the U.S. reached a deal with the UK that would lower the tariffs on most of the staples the company exports to America. Cars accounted for about 5% of the UK's total exports to the U.S. in 2024, making automotive the largest UK export to the States. In 2024, the UK exported £9.0 billion ($12 billion) worth of cars to the U.S., accounting for 24.7% of the country's total car exports. The U.S. is Britain's top trade partner in the car sector, with the country shipping 102,000 vehicles to U.S. shores last year, according to AutoShippers. Despite the clear advantage of shipping the vehicles from Britain thanks to the new tariff situation, Toyota insists it isn't moving production of the Corolla GR to Britain for this reason, according to Reuters. The move is said to have nothing to do with tariffs. Toyota plans to spend big in order to make the UK plant ready. The company plans to invest 8 billion yen ($56 million) to prepare the plant for showtime. The Burnaston facility reportedly has experienced a decline in production since Brexit, and because it already produces the base model of the GR, the Corolla hatchback, it was a natural choice for this project, Reuters sources said. More Automotive news: Ford could take drastic measures to combat tariffs, leaked memo saysTesla quietly kills model it teased just last year, for nowForget tariffs; used car buyers have another reason to worry about prices Also, Toyota plants in the U.S. are running at full capacity, making it difficult to move production Stateside. Toyota will bring Japanese engineers over to the UK to share expertise with the workers there. The plan is to reach the 10,000 vehicle annual run rate by the middle of 2026. Toyota currently makes the GR at the Motomachi plant in Toyota City. Production at the plant is already at full capacity. The line produced 25,000 cars last year, 8,000 of which were GR Corollas. Related: Car dealers are worried, and it could be great news for car buyers The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
7 days ago
- Automotive
- Yahoo
Ford's Jim Farley said he had self doubt when he was asked to be CEO. How he overcame it
When Ford Motor Co. leaders asked Jim Farley to be the company's next CEO in 2020, Farley wasn't sure he could do the job and had to do some deep soul searching and advice seeking before committing to it, he said. That was one of Farley's revelations that he shared Sunday to show how it helped shape who he is today. He imparted his life lessons to the 83 members of the graduating class of Portsmouth Abbey School in Portsmouth, Rhode Island, on May 25 during the commencement address. "When I was asked to become CEO of Ford, I had a lot of self doubt," Farley said. "I knew it would be a huge challenge. My dad was passed over as CEO of a large bank, and I remember how hurt he was. … Yet, he courageously got past it. He never let it define him as a person. So, I kind of knew that when I took this job at Ford, it might not work out, and I had to be all right with that." Farley, 62, is a 1981 graduate of Portsmouth Abbey School. He became CEO of Ford on Oct. 1, 2020, after Jim Hackett retired from the role. The theme of Farley's speech, which Ford shared with the news media, was the importance of knowing one's self. He shared bits of his past to encourage the graduates to find their true selves and define their values and goals. 'It's my privilege to return to Portsmouth Abbey to share my perspective and experiences with the class of 2025,' Farley said in a statement. 'My time at the Abbey was filled with learning and self discovery that had a profound effect on my own path in life and the person I am today." Farley said the students might want to focus on "the face you show the others." But he challenged them instead look inside and ask: 'Who am I?" It was a lesson he learned at a young age at the school when tried too hard to impress others and realized he was forsaking his values. "Some of my friends were cheating on an important test here. I lied and told them I had cheated, too, even when I couldn't bring myself to do it, actually," Farley said. "Can you imagine? Not my finest moment. Pretending to cheat to impress my friends." Farley said that while he knew he was not in line to be valedictorian, he did get the Headmaster's Medal, a humanitarian award given by the monks for supporting a fellow student. He said it was an award that "went mostly unnoticed" except for by him. "I received it for helping a student named Carlos every morning put his prosthetic leg on and get around campus," Farley said. "I enjoyed assisting him — it surprised me, and we became friends." After Farley graduated from Portsmouth Abbey, he went on to Georgetown University and the Anderson School of Management at the University of California, Los Angeles. His first big job out of school was as a salesman at IBM, in part to please his parents, he told the class. But it didn't take him long to realize he was in the wrong job and wrong field. In his senior yearbook profile, he had written, 'Love is … a 427 Cobra,' and thanked his 'Gramps,' Emmet Tracy, who was an early employee at Ford and one of the first to help build the Model T. By the time Farley was 5 years old, his grandfather was grooming him to love cars and the automobile business. In fact, by 14, Farley had talked himself into a summer job rebuilding car enginesin Southern California, where he saved up $500 to buy a black 1966 Mustang with a blown motor. He rebuilt the engine. "I drove it across the country, straight through the nights, with no license and no insurance. That was another moment when I discovered who I was," he told the class, urging them not to do what he did. Farley said the experience taught him independence and reinforced his love of cars. So after IBM, he landed a job at Toyota, he said. But he knew accepting the job at the Japanese-based company would not please his parents. "My father had been a naval officer in the Pacific in World War II, and my grandfather was a factory worker at Ford," Farley said. "Accepting a job at Toyota and having to explain that to my family … I really, really had to know myself. I needed to be able to face myself in the mirror and say: 'Hey, I know what I'm doing here.' Even if others were confused, I wasn't." Farley stayed at Toyota for 20 years before joining the Dearborn-based automaker to head up its marketing. He told the class it was a tough decision to make such a big career move. But when it came time to decide whether he was ready for the role of CEO in the summer of 2020, he made a list of all the things he would do if he were CEO, what he would have to give up, what the risks and opportunities would be. "And, just like any major decision I've had to make over the last 45 years, it came down to that same old question," Farley said. "The whole list was there, but what did I want to do?" Farley said it was his wife who reminded him that he'd been preparing for the job for decades. More: An investigation inside Ford has led to a lawsuit against California lawyers for fraud More: Ford CEO Farley saw a drop in compensation as the automaker missed performance targets Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Ford's Jim Farley said he had 'self doubt' when he was asked to be CEO Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Automotive
- Yahoo
Car business ‘really good' amid tariff fluctuations: Ford dealership owner
Tim Hovik, owner of San Tan Ford, joins NewsNation as Ford raises prices on three Mexico-made models — the Bronco Sport, Maverick and Mustang Mach-E — by several thousand dollars. CEO Jim Farley says tariffs are leveling the playing field, while Trump, during a visit to Michigan, claimed the policy will bring back U.S. manufacturing jobs. But car prices are climbing — per Kelley Blue Book, the average new vehicle now costs over $48,000. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
22-05-2025
- Automotive
- Yahoo
Is Ford Stock a Millionaire Maker?
Automakers are facing an uncertain future. Ford is already feeling the pinch from tariffs, and further economic uncertainty could slow the company down. Ford isn't a millionaire maker and it's probably best to avoid the stock right now. 10 stocks we like better than Ford Motor Company › There's been a resurgence of investor interest in automakers recently, after President Trump indicated that some automotive tariffs may not be as bad as initially feared. Ford (NYSE: F) stock plummeted in early April on the initial tariff rollout but has since rebounded and is up nearly 9% year to date. But investors may want to temper their enthusiasm. Ford continues to face significant headwinds on multiple fronts. Here's why Ford stock isn't a millionaire maker and why it's probably best to avoid it right now. The Trump administration said recently that it wouldn't "stack" automotive tariffs on top of each other. For example, a steel tariff wouldn't be applied to imported auto parts that have already undergone a tariff. Moreover, the administration said automakers could receive a rebate on some tariffs for the first two years. But the damage has already been done to Ford and its peers. The company pulled its full-year guidance for 2025 and said tariffs will cost $1.5 billion this year, even after attempts to offset some of the impact. To understand just how much the tariff turmoil is hurting Ford, consider that the company's previous guidance was for about $8 billion in earnings before income and taxes (EBIT) for the full year. Yet the company had just $1 billion in EBIT earnings for its first quarter, far below the pace required to meet that goal, which was set just three months ago. Ford CEO Jim Farley said on the company's earnings call that, "it's still too early to fully understand our competitors' responses to these tariffs. 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." While tariff deals are being worked out, some damage has clearly already been done to Ford and its peers. And there could be more pain on the way. Another result of a chaotic tariff rollout is that consumers are now more worried about the economy. A recent University of Michigan survey found that consumer sentiment is at its lowest point in three years, and Americans are expecting inflation to start ticking up later this year. That's bad news considering the average transaction cost for a new vehicle is about $48,700. Tariffs could drive auto prices even higher -- Ford already hiked prices for three of its models by as much as $2,000 -- at the same time that consumers are worried about the economy. That's doubly bad for Ford and its peers because it means Americans could soon begin saving their cash for a rainy day, instead of spending it on a new car. I understand why some investors might be drawn to Ford. The company's stock is relatively cheap, with a price-to-earnings ratio of 8.6, far below the S&P 500's P/E ratio of 28. Plus, the company has fared better than some of its peers when it comes to tariffs. General Motors expects a $5 billion tariff impact this year, compared to Ford's $1.5 billion. However, there's far too much uncertainty in the automotive market right now for Ford to grow significantly. Tariffs are likely to continue affecting automakers for the foreseeable future, and Ford's sales aren't expected to be impressive over the next few years. Analysts estimate sales will fall by 2.4% this year and increase by just 1.5% in 2026. With significant risks from tariffs and potential economic headwinds, Ford stock certainly isn't a millionaire maker. And with these uncertainties likely to stick around for a while, I think it's best to avoid the stock altogether. Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ford Motor Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy. Is Ford Stock a Millionaire Maker? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
