Latest news with #MustangMach-E.
Yahoo
26-06-2025
- Automotive
- Yahoo
Why Ford's EV Sales Could Hit a Speed Bump
The Detroit carmaker issued a stop sale for all Mustang Mach-E vehicles. It recalled roughly 317,000 Mach-E vehicles for a door lock malfunction. Ford has a healthy balance sheet but faces many headwinds right now. 10 stocks we like better than Ford Motor Company › When it comes to the global automotive industry, all signs point to an electrified future. Already, China's automotive market is testing 50% market share of electrified vehicles, but electric vehicle (EV) sales progress has been slower to gain traction in the U.S. market. For Ford Motor Company (NYSE: F) investors, the company's recent EV sales growth is about to hit a speed bump thanks to its popular Mustang Mach-E. Here's what's going on. Ford has had a rougher time with recalls than many of its competitors recently. The Detroit icon is no stranger to leading in recall volume, and in the past it's dinged the company's bottom line and hindered profitability. Not all recalls are created equal, and issues that can be fixed with over-the-air updates can be considerably cheaper than having customers bring in their vehicles for a hardware fix. Unfortunately, the recent recall for Ford's Mustang Mach-E could be a little problematic. The automaker issued a global recall for roughly 317,000 Mustang Mach-E vehicles due to a malfunction that could cause drivers to be locked in or out of their vehicle, leaving a potentially dangerous scenario if a person were unable to exit the vehicle. On the bright side, Ford noted that so far no injuries or accidents have been linked to the defect, and that it's currently working on a software fix that will be available during the third quarter. Here's the kicker, though: Ford issued a stop sale for all Mustang Mach-E vehicles until the issue is fixed. For investors, that likely means a dip in EV sales in the near future. Year to date through May, Ford's Mustang Mach-E posted a modest 2.8% gain over the prior year -- far ahead of the gasoline-powered Mustang, which recorded an 18% drop in sales. Meanwhile, Ford's total electrified vehicle sales were up 18%, driven largely by a 31% uptick in hybrid vehicle sales. The problem is that the vast majority of EVs currently aren't profitable, and losing what little scale Ford has built due to the stop-sale pause on the Mustang Mach-E isn't going to help matters. Consider that Ford's Model-e business segment lost $4.7 billion in 2023 before losing almost $5.1 billion during 2024. This all comes at a time when Ford is already dealing with tariff headwinds and the strategies necessary to offset added costs. While Ford believes it can offset some of the tariff impacts, it still sees a net negative impact of roughly $1.5 billion in adjusted earnings before interest and taxes (EBIT) for 2025. For current investors, Ford remains well-positioned with a healthy balance sheet boasting roughly $45 billion in liquidity, including $27 billion in cash. That liquidity can easily support Ford's increasingly lucrative dividend which sits at a current yield of 7%. The company remains committed to returning 40% to 50% of free cash flow to shareholders. But for new investors, there's enough uncertainty and headwinds facing Ford to watch the automaker from the sidelines in 2025. 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 $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% 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 June 23, 2025 Daniel Miller has positions in Ford Motor Company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Ford's EV Sales Could Hit a Speed Bump 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
Miami Herald
10-06-2025
- Automotive
- Miami Herald
Ford Falls Behind As Chevrolet Makes Surprise EV Leap
General Motors has released key sales highlights for its vehicles through May 2025, with the biggest piece of news being that Chevrolet has surpassed Ford to become the number two EV brand in the United States. After the first quarter, GM reported that Chevrolet was the fastest-growing EV brand in the country. Now, with 37,000 EVs sold from the start of the year until the end of May, Chevy has officially surpassed Ford. The Blue Oval registered 34,000 EV sales over the same period, but saw a drop in EV sales in May. Although Chevrolet didn't break down EV sales by model, we're willing to bet that the affordable Equinox EV contributed significantly to the total of 37,000. Starting at $33,600, the Equinox EV handily undercuts the $37,995 starting price of Ford's cheapest EV, the Mustang Mach-E. Without an equivalent model to match the Equinox EV on price, Ford was always going to struggle to maintain its number 2 position behind Tesla. Chevy also has the Blazer EV, a mid-size electric SUV for which Ford has no direct equivalent, and the Silverado EV. As a whole, there were also big gains for GM's EV lineup of 13 individual models. For the first quarter, GM saw a 94% increase in EV sales. Through May, GM has sold over 62,000 EVs in the country. In the first two months of Q2, GM's EV market share was around 15.5%, over double what it was a year ago. May was also GM's second-best EV month ever. GM also has EVs in segments not occupied by Ford, such as the new Escalade IQ, one of the largest fully electric SUVs on sale. The lineup also includes the Chevrolet Silverado EV, GMC Sierra EV, and GMC Hummer EV. "Customers are responding in record numbers to our world-class portfolio of electric and gas-powered vehicles," said Rory Harvey, executive VP and president of global markets. "In the first two months of the second quarter, we more than doubled our EV sales compared to the same period last year." Q2 sales will be reported by GM on July 1, and if the company maintains its current momentum, it could widen the gap over Ford. Chevrolet's EV sales are especially impressive considering that the cheap and popular Bolt is no longer on sale. It's been almost two years since GM CEO, Mary Barra, confirmed that a second-gen Bolt is on the way. Specifics are still up in the air, but a zippy electric hatchback under $30,000 could further boost Chevrolet and GM's EV portfolio. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Los Angeles Times
06-06-2025
- Automotive
- Los Angeles Times
Carmakers use stealth price hikes to cope with Trump's tariffs
Car buyers racing to get ahead of President Trump's tariffs face an uncomfortable truth — the trade war is already boosting US auto prices, often in ways nearly invisible to consumers. The sticker price on a particular make and model may not have changed, at least not yet. But automakers have been quietly cutting rebates and limiting cheap financing deals, adding hundreds of dollars to buyers' monthly payments even as the companies say they're holding the line on pricing. Several have boosted delivery charges — a fee everyone must pay when buying a new vehicle — by $40 to $400 dollars, according to automotive researcher Inc. Some dealers, meanwhile, have decided to charge more for the cars already on their lots, knowing it will cost more to replace them. These stealth increases could help automakers cope with Trump's 25% levies on imported vehicles without risking his wrath, particularly once cars that landed in American ports after the tariffs were imposed finally start reaching showrooms this month. They'd all like to avoid the social-media fury he unleashed on Walmart Inc. after the retail giant said the trade war had forced it to raise prices. But the auto industry's subtle price hikes are already having an effect. The average sale price for a new car jumped 2.5% in April, the steepest monthly increase in five years, according to the Kelley Blue Book car buying guide. The average reached $48,699, almost a record. Incentives, which once knocked 10% off the price, fell to 6.7%. Zero-percent financing deals — a key come-on in this age of high interest rates — dropped in April to their lowest rate since 2019, according to researcher Cox Automotive. And at some point, car buyers may balk. 'On the consumer side, they're seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, 'No man, we didn't raise prices at all,'' said Morris Smith III, a Ford dealer in Kansas. 'Stealth is a good word for it.' While the steps have helped car companies avoid outright price hikes until now, those are coming. Ford Motor Co. told dealers it will raise sticker prices as much as $2,000 on three models it builds in Mexico — the Maverick pickup, the Bronco Sport and the electric Mustang Mach-E. Japan's Subaru Corp. is boosting prices $1,000 to $2,000 to help offset tariff costs, according to people familiar with the matter. Hyundai Motor Co. is considering a 1% increase to the suggested retail price of every model in its lineup, a hike of at least several hundred dollars, Bloomberg reported last week. The Korean company also is likely to jack up shipping charges and fees for options such as floor mats and roof rails, which could turn off some inflation-weary consumers. Other automakers are hiking prices on their new 2026 models coming this summer and fall, but attributing the increases to the model-year changeover rather than tariffs. 'With a new product, having a higher price is not 'raising price' in the game of semantics,' said John Murphy, an analyst with Bank of America Corp., at an event in Detroit Wednesday. 'So they don't really enrage certain folks that might come down on them for raising price.' All of these changes — the sticker price increases, reduced incentives and higher fees — will become more visible to car shoppers in the coming weeks. Since the 25% levies went into effect on April 3, dealers have been selling from a shrinking stockpile of pre-tariff cars. (There's an exemption for cars that comply with the terms of the US, Mexico and Canada free trade agreement, which only face an import tax on their non-American content.) That process is nearly done, and by late June, dealers will face the new reality of lots filled with cars that cost more to bring into the country. 'There's nothing they can do to prevent this from having an impact,' said Sean Tucker, editor of Kelley Blue Book. 'There's not a single cliff, but the date they run out of those pre-tariff cars, that's when you're going to see the most dramatic change.' Sales may suffer as a result. A recent survey from found that 65% of new car buyers would walk away if monthly payments rose just 5% in a market where car prices are already near historic highs. An Edmunds survey released Thursday found three-quarters of car buyers said tariffs would be a factor in their purchasing decisions. Shoppers are already not getting the deals that were commonplace just months ago. Take the Ford F-150 pickup, America's top-selling vehicle. Earlier this year, an F-150 could be had with a 1.9% interest rate on a 6-year loan, Smith, the Kansas dealer, said. Then, Ford only offered that rate for certain, higher-priced trim levels of the truck. Now, 1.9% financing is offered only on three-year loans, which are rare. 'The dealers I'm talking to have every expectation that in the next 90 days to six months, there will be pretty significant price increases across the board,' Smith said, 'assuming something doesn't happen with the tariffs.' Some dealers are preparing for that day of reckoning by making as much money off their pre-tariff inventory as they can, charging over the sticker price. 'Dealers set final prices, and they're dealing with the knowledge that for every car they sell, it's going to cost them more to replace it than it used to,' Tucker said. Automakers might not just raise prices on the cars they import. They may choose to increase the costs of their more expensive, US-made models so the full weight of the tariffs doesn't fall on some of the cheaper vehicles they make overseas. General Motors Co., for example, imports more than 400,000 cars each year from its factories in South Korea, including the $20,500 Chevrolet Trax. 'GM doesn't necessarily have to raise the price of the Chevy Trax by 25% in order to pay a 25% tariff on the Chevy Trax, because those buyers are the most price-sensitive,' Tucker said. 'So maybe instead, you bump up the price of the Silverado pickup in order to pay the tariff on the Trax. But GM isn't going to put that on a window sticker.' Automakers may also drop the most affordable trims of their vehicles. Stellantis NV decided to pause making the entry-level version of its electric muscle car, the Charger Daytona R/T, because of tariff risks, the company confirmed in May. The R/T, built at an assembly plant in Windsor, Canada, currently starts at $59,595, while the more powerful Scat Pack trim starts at $73,190. Cox forecasts tariffs could raise the price on imported cars by 10% to 15%, further exacerbating an affordability crisis. But those increases aren't likely to come in big chunks, instead phasing in slowly and quietly so as not to scare off customers, said Erin Keating, Cox's senior director of economics and industry insights. Still, some potential buyers will walk away. Domestic sales could fall from 16 million in 2024 to 15.6 million this year, according to Cox. The outlook from consumer analysis company J.D. Power is even bleaker, with tariffs predicted to cut US auto sales by about 1.1 million vehicles annually, or roughly 8%. Automakers are scaling back production in anticipation. More than a half-million fewer cars will be built in North America this year than in 2024, according to researcher AutoForecast Solutions. 'By enacting tariffs on Canadian and Mexican parts and vehicles, it slows the whole workings of this North American machine making vehicles,' said Sam Fiorani, AutoForecast's vice president of global vehicle forecasting. 'The vehicles that are being built will cost more, raising the price of vehicles and lowering the demand for them. It's all interconnected.' Naughton and Coppola write for Bloomberg
Yahoo
06-06-2025
- Automotive
- Yahoo
Carmakers Use Stealth Price Hikes to Cope With Trump's Tariffs
(Bloomberg) — Car buyers racing to get ahead of President Donald Trump's tariffs face an uncomfortable truth — the trade war is already boosting US auto prices, often in ways nearly invisible to consumers. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars The sticker price on a particular make and model may not have changed, at least not yet. But automakers have been quietly cutting rebates and limiting cheap financing deals, adding hundreds of dollars to buyers' monthly payments even as the companies say they're holding the line on pricing. Several have boosted delivery charges — a fee everyone must pay when buying a new vehicle — by $40 to $400 dollars, according to automotive researcher Inc. Some dealers, meanwhile, have decided to charge more for the cars already on their lots, knowing it will cost more to replace them. These stealth increases could help automakers cope with Trump's 25% levies on imported vehicles without risking his wrath, particularly once cars that landed in American ports after the tariffs were imposed finally start reaching showrooms this month. They'd all like to avoid the social-media fury he unleashed on Walmart Inc. (WMT) after the retail giant said the trade war had forced it to raise prices. But the auto industry's subtle price hikes are already having an effect. The average sale price for a new car jumped 2.5% in April, the steepest monthly increase in five years, according to the Kelley Blue Book car buying guide. The average reached $48,699, almost a record. Incentives, which once knocked 10% off the price, fell to 6.7%. Zero-percent financing deals — a key come-on in this age of high interest rates — dropped in April to their lowest rate since 2019, according to researcher Cox Automotive. And at some point, car buyers may balk. 'On the consumer side, they're seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, 'No man, we didn't raise prices at all,'' said Morris Smith III, a Ford (F) dealer in Kansas. 'Stealth is a good word for it.' While the steps have helped car companies avoid outright price hikes until now, those are coming. Ford Motor Co. told dealers it will raise sticker prices as much as $2,000 on three models it builds in Mexico — the Maverick pickup, the Bronco Sport and the electric Mustang Mach-E. Japan's Subaru Corp. (FUJHY) is boosting prices $1,000 to $2,000 to help offset tariff costs, according to people familiar with the matter. Hyundai Motor Co. (HYMLF) is considering a 1% increase to the suggested retail price of every model in its lineup, a hike of at least several hundred dollars, Bloomberg reported last week. The Korean company also is likely to jack up shipping charges and fees for options such as floor mats and roof rails, which could turn off some inflation-weary consumers. Other automakers are hiking prices on their new 2026 models coming this summer and fall, but attributing the increases to the model-year changeover rather than tariffs. 'With a new product, having a higher price is not 'raising price' in the game of semantics,' said John Murphy, an analyst with Bank of America Corp. (BAC), at an event in Detroit Wednesday. 'So they don't really enrage certain folks that might come down on them for raising price.' All of these changes — the sticker price increases, reduced incentives and higher fees — will become more visible to car shoppers in the coming weeks. Since the 25% levies went into effect on April 3, dealers have been selling from a shrinking stockpile of pre-tariff cars. (There's an exemption for cars that comply with the terms of the US, Mexico and Canada free trade agreement, which only face an import tax on their non-American content.) That process is nearly done, and by late June, dealers will face the new reality of lots filled with cars that cost more to bring into the country. 'There's nothing they can do to prevent this from having an impact,' said Sean Tucker, editor of Kelley Blue Book. 'There's not a single cliff, but the date they run out of those pre-tariff cars, that's when you're going to see the most dramatic change.' Sales may suffer as a result. A recent survey from found that 65% of new car buyers would walk away if monthly payments rose just 5% in a market where car prices are already near historic highs. An Edmunds survey released Thursday found three-quarters of car buyers said tariffs would be a factor in their purchasing decisions. Shoppers are already not getting the deals that were commonplace just months ago. Take the Ford F-150 pickup, America's top-selling vehicle. Earlier this year, an F-150 could be had with a 1.9% interest rate on a 6-year loan, Smith, the Kansas dealer, said. Then, Ford only offered that rate for certain, higher-priced trim levels of the truck. Now, 1.9% financing is offered only on three-year loans, which are rare.'The dealers I'm talking to have every expectation that in the next 90 days to six months, there will be pretty significant price increases across the board,' Smith said, 'assuming something doesn't happen with the tariffs.' Some dealers are preparing for that day of reckoning by making as much money off their pre-tariff inventory as they can, charging over the sticker price. 'Dealers set final prices, and they're dealing with the knowledge that for every car they sell, it's going to cost them more to replace it than it used to,' Tucker said. Automakers might not just raise prices on the cars they import. They may choose to increase the costs of their more expensive, US-made models so the full weight of the tariffs doesn't fall on some of the cheaper vehicles they make overseas. General Motors Co. (GM), for example, imports more than 400,000 cars each year from its factories in South Korea, including the $20,500 Chevrolet Trax. 'GM doesn't necessarily have to raise the price of the Chevy Trax by 25% in order to pay a 25% tariff on the Chevy Trax, because those buyers are the most price-sensitive,' Tucker said. 'So maybe instead, you bump up the price of the Silverado pickup in order to pay the tariff on the Trax. But GM isn't going to put that on a window sticker.' Automakers may also drop the most affordable trims of their vehicles. Stellantis NV (STLA (STLA) decided to pause making the entry-level version of its electric muscle car, the Charger Daytona R/T, because of tariff risks, the company confirmed in May. The R/T, built at an assembly plant in Windsor, Canada, currently starts at $59,595, while the more powerful Scat Pack trim starts at $73,190. Cox forecasts tariffs could raise the price on imported cars by 10% to 15%, further exacerbating an affordability crisis. But those increases aren't likely to come in big chunks, instead phasing in slowly and quietly so as not to scare off customers, said Erin Keating, Cox's senior director of economics and industry insights. Still, some potential buyers will walk away. Domestic sales could fall from 16 million in 2024 to 15.6 million this year, according to Cox. The outlook from consumer analysis company J.D. Power is even bleaker, with tariffs predicted to cut US auto sales by about 1.1 million vehicles annually, or roughly 8%. Automakers are scaling back production in anticipation. More than a half-million fewer cars will be built in North America this year than in 2024, according to researcher AutoForecast Solutions. 'By enacting tariffs on Canadian and Mexican parts and vehicles, it slows the whole workings of this North American machine making vehicles,' said Sam Fiorani, AutoForecast's vice president of global vehicle forecasting. 'The vehicles that are being built will cost more, raising the price of vehicles and lowering the demand for them. It's all interconnected.' —With assistance from Chester Dawson. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. 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Miami Herald
21-05-2025
- Automotive
- Miami Herald
New Vehicle Inventory Is Shrinking, 3 Ways Shoppers Are Affected
Recent data from Cox Automotive has revealed that new vehicle inventory declined 7.4% in April compared to March. May began with 2.49 million new cars on dealer lots compared to 2.69 million at the start of April, representing a 10.5% drop. During the start of May, U.S. dealers had an average new vehicle supply lasting 66 days, down 16 days year-over-year and six days from last month. While spring has historically been a catalyst for new vehicle sales, inventories aren't being replenished at their usual rate with lower manufacturing and delivery numbers from some automakers amid tariff uncertainty. These changes in production and delivery figures have caused many automakers to withdraw their financial guidance for 2025. In turn, consumers shopping for a new car face slimmer options, fewer incentives, and higher prices. Automakers are on the verge of introducing 2026 production year vehicles at showrooms, but they're also expected to update their inventory with higher tariff-related pricing. New vehicle sales increased 10.5% year-over-year in April, although this figure rises to 14.9% when you don't account for April 2025 having one more selling day than April 2024, according to J.D. Power. Still, some consumers have been rushing to buy new cars to avoid tariff-induced price increases, so sales rates will likely continue tapering off from April. Mid-April saw a 30-day sales peak, but the month's last two weeks experienced a noticeable decline in purchase rates. The average new vehicle listing price was $48,656 at the end of April, marking an increase of $774, or 1.6%, from $47,882 at the start of the month, and $1,318 (2.8%) from a year earlier. While consumers brace for higher new car prices and are currently shopping with reduced inventories, price increases weren't universal. BMW, Buick, Mitsubishi, and Dodge saw month-over-month price declines, while RAM, Lincoln, and Cadillac represented the most significant monthly cost hikes. Dealers are also giving shoppers fewer incentives for new vehicle purchases. According to Cox Automotive data, new vehicle sales incentives dropped to 6.7% of average transaction prices, down 7% from March. However, some brands have more pre-tariff cars available than others. Toyota and Lexus have the lowest supply at 29 and 25 days, respectively, whereas RAM, Mitsubishi, Infiniti, and Land Rover have inventories exceeding 100 days. Due to tariffs, Ford has already raised prices on its Mexico-produced Bronco Sport, Maverick, and Mustang Mach-E. On Monday, Subaru announced tariff-related price increases for several models. New vehicle shoppers can gain clarity during this turbulent time by understanding inventory figures, as automakers with higher dealer inventories may offer more pre-tariff-priced models. Additionally, knowing which automakers are more reliant on U.S. imports, like Audi, might indicate which companies are most likely to introduce price increases sooner rather than later. Slimmer inventories don't necessarily mean you won't get the model you want, but they may limit your ability to get certain features like specific color combinations. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
