Latest news with #RobKaffl
Yahoo
04-04-2025
- Automotive
- Yahoo
Ford tries to ease tariff pain with a new offer: Employee prices for everyone
President Donald Trump's 25% tariffs on auto imports to the U.S. went into effect at 12:01 a.m. EDT on Thursday. Hours later, Ford Motor Company responded by announcing a new incentive for would-be car buyers: employee pricing for customers. "We understand that these are uncertain times for many Americans,' wrote Rob Kaffl, Ford's director of U.S. sales and dealer relations, in a company blog post. The post did not disclose the value of the employee discount Ford is making available to customers. A company spokesperson told Fortune by email that the vehicle price is below the dealer invoice price, and "consumers can save thousands depending on the vehicle." The promotion is through June 2. Eligible cars include a range of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles. But it excludes Raptors, specialty Mustang and Bronco vehicles, the 2025 Expedition and Navigator SUVs and Super Duty trucks. For potential electric retail customers, the employee pricing is offered on top of the Ford Power Promise, a customer support program for EV owners, further extended through June 30. Ford CEO Jim Farley said during the company's fourth-quarter earnings call in February that hefty import duties would cost the U.S. auto industry billions of dollars in added profit headwinds. The biggest winners from the tariffs, Farley suggested, won't be domestic automakers but Asian rivals that would face little additional impact. The new tariffs are estimated to raise the average cost of a car imported from another country by thousands of dollars. In addition, repairs for cars that currently use foreign-made parts are expected to cost more money. The Trump administration expects tariffs to lead to domestic manufacturing, and raise $100 billion in revenue annually. However, some experts stress the strain tariffs will place on the auto industry and the consumer. 'With 25% increases in the cost of parts, inflation would surge in maintenance and repair and insurance, which vehicle owners are already struggling to handle,' Jonathan Smoke, Cox Automotive's chief economist said in a statement. In an industry note on Wednesday, Wedbush Securities analysts said if the 25% tariff on autos and auto parts from outside the U.S. stay in place, it will change the paradigm for the U.S. auto industry for years to come. 'We believe the price impacts from this tariff announcement could result in demand destruction of 15%-20% in 2025 for new auto purchases alone based on our estimates,' according to the analysts. Ford shares were down about 4% as of mid-morning on Thursday. This story was originally featured on Sign in to access your portfolio
Yahoo
04-04-2025
- Automotive
- Yahoo
Ford Looks to Capitalize on Auto Tariff Shopping Rush With Sweeping Discounts
Ford is offering its employee-pricing plan, known as the A Plan, to shoppers on most of its 2024 and 2025 models through June 2. The A Plan's widened eligibility is part of Ford's 'From America, For America' campaign launching as President Trump's new 25% tariff on all foreign auto imports takes effect. This campaign also includes a June 30 extension of its program, providing a free home charger and complimentary installation for purchases or leases on the automaker's electric Mustang Mach-E SUV, F-150 Lightning pickup truck, or E-Transit cargo van. Ford's discounts apply to its entire 2024 and 2025 model year inventory except for F-150 Raptors, 2025 Super Duty pickups, the Expedition, Lincoln Navigator, and Ford's fleet vehicles. The A-Plan savings program provides a discount of about $2,000 to $10,000 per vehicle. While Ford declined to provide a full list of discounts, a customer purchasing a $65,000 F-150 XLT would spend $55,000 with the A Plan, while a Ford Escape ST SUV would drop from $36,300 to $33,000, according to anonymous dealership information sourced by The Detroit Free had more unsold cars in its inventory in February than all brands except Jaguar, Mini, and Dodge, Cox Automotive reports. This data was measured by how many days an automaker would take to sell all of its inventory's vehicles. At the end of March, Ford had over 568,000 cars in its inventory, representing an 8% year-over-year increase. Rob Kaffl, Ford's director of US sales, told The Detroit Free Press: 'We're in a very competitive position in our stock. And the auto sector, and overall public, has seen a lot of uncertainty in the market right now especially in the automotive space. So we feel by providing this message in 'From America, For America,' we're providing some security.' On Tuesday, Ford's first quarter report revealed sales were down 1.3% from a year ago, but its electric vehicle (EV) sales increased 25.5% to represent 15% of its overall sales. Ford and General Motors (GM) are the two largest vehicle producers in the US, but GM imports 46% of its inventory sold in the US compared to Ford's 21%, according to Electrek. Today, Ford released a video highlighting its commitment to domestic auto manufacturing and sales as part of its From America, For America campaign. The video notes that Ford employs the most hourly auto workers in the US and assembles the most vehicles domestically. In February, think tank Anderson Economic Group predicted that costs for North America-assembled cars could increase anywhere from $4,000 to $12,000—with EVs facing $12,000-plus price hikes, CNN reports. Auto consumers are losing value in other areas, like complimentary maintenance plans. Hyundai, one of the most popular vehicle brands among US drivers, announced to its dealers that it would be ending its complimentary maintenance program covering routine maintenance on new car purchases for the first three years or 36,000 miles, whichever comes first. Shoppers priced out of the new vehicle market likely won't find much better value with used listings, as rising prices from tariffs are expected to increase pre-owned vehicle demand, further raising costs. While Ford's offering of its employee discount is aimed at clearing out its inventory surplus, the promotion's savings are substantial enough to warrant attention from shoppers, who appear to be buying cars at a higher rate to beat tariff price hikes. In March, the same month that Trump announced his administration's auto tariffs, Hyundai, Toyota, Volkswagen, and Mazda reported increased customer demand, according to Jalopnik.
Yahoo
03-04-2025
- Automotive
- Yahoo
Ford offering employee pricing to all shoppers in wake of Trump tariffs
Automotive giant Ford announced it will be offering employee pricing to all of its shoppers in the wake of President Trump's new sweeping tariff package. Ford is kicking off its 'From America, For America' campaign Thursday. The effort, which Ford calls the 'handshake deal with every American,' will be advertised on social media, in TV ads and in newspapers. 'We understand that these are uncertain times for many Americans. Whether it's navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,' said Rob Kaffl, Ford's director for U.S. sales and dealer relations. The Dearborn, Mich.-based automobile manufacturer is proposing its employee-pricing plan to customers for a variety of hybrid, plug-in hybrid, and diesel Ford 2024 and 2025 models. It will last through June 2. The company's Raptors, specialty Mustang and Bronco vehicles, 2025 Expedition and Navigator SUVs will be excluded from the promotion, according to Ford. For those looking to purchase an electric vehicle, the offer will be active until June 30, with a complimentary home charger included. Kaffl said in the announcement that the initiative is a 'testament to our commitment to assembling where we sell. It's a way for us to give back to the communities that have supported us for generations.' The campaign comes as Trump has rolled out a fresh package of tariffs, impacting nearly every country in the world. The baseline was set at 10 percent, with higher tariffs up to 54 percent for specific nations. Mexico and Canada, the U.S.'s primary trade partners, were exempt from this round of tariffs as a 25 percent duty was imposed earlier this year. A 25 percent tariff on foreign vehicles went into effect Thursday. Trump said Wednesday during the unveiling that the U.S. and 'its taxpayers have been ripped off for more than 50 years, but it's not going to happen anymore.' Trump and his allies have argued that tariffs will eventually lead to a stronger economy and improve national security, adding that imports have undercut the U.S. automotive industry. Ford was not the only major auto manufacturer to announce adjustments in light of Trump's new wave of tariffs. Stellantis notified workers Thursday that it will temporarily halt production of vehicles at its assembly plants in Mexico and Canada, The Hill reported. 'Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations,' Stellantis's chief operating officer for the Americas said in an email to employees. 'These are actions that we do not take lightly, but they are necessary given the current market dynamics.' General Motors said Thursday that it will bolster production of trucks in its Fort Wayne, Ind., factory, Reuters reported Thursday. When reached for comment, Ford referred The Hill to its campaign announcement. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
03-04-2025
- Automotive
- The Hill
Ford offering employee pricing to all shoppers in wake of Trump tariffs
Automotive giant Ford announced that it will be offering employee pricing to all of their shoppers in the wake of President Trump's new sweeping tariff package. Ford is kicking off its 'From America, For America' campaign on Thursday. The effort, which Ford calls the 'handshake deal with every American,' will be advertised on social media, in TV ads and in newspapers. 'We understand that these are uncertain times for many Americans. Whether it's navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,' said Rob Kaffl, Ford's director for U.S. sales and dealer relations. The Dearborn, Mich.-based automobile manufacturer is proposing its employee-pricing plan to customers for a variety of hybrid, plug-in hybrid, and diesel Ford 2024 and 2025 models. It will last through June 2. The company's Raptors, specialty Mustang and Bronco vehicles, 2025 Expedition and Navigator SUVs will be excluded from the promotion, according to Ford. For those looking to purchase an electric vehicle, the offer will be active until June 30, with a complimentary home charger included. Kaffl said in the announcement that the initiative is a 'testament to our commitment to assembling where we sell. It's a way for us to give back to the communities that have supported us for generations.' The campaign comes as President Trump has rolled out a fresh package of tariffs, impacting nearly every country in the world. The baseline was set at 10 percent, while the figure could go up to 54 percent, depending on the nation. Mexico and Canada, the U.S.'s primary trade companions, were exempt from this round of tariffs as a 25 percent duty was imposed earlier this year. A 25 percent tariff on foreign vehicles went into effect on Thursday. Trump said on Wednesday during the unveiling that the U.S. and 'its taxpayers have been ripped off for more than 50 years, but it's not going to happen anymore.' Trump and his allies have argued that tariffs will eventually lead to a stronger economy and improve national security, adding that imports have undercut the U.S. automotive industry. Ford was not the only major auto manufacturer to announce adjustments in light of Trump's new wave of tariffs. Stellantis notified workers on Thursday that it will temporarily halt production of vehicles at its assembly plants in Mexico and Canada, The Hill reported. 'Those actions will impact some employees at several of our U.S. powertrain and stamping facilities that support those operations,' Stellantis' chief operating officer for the Americas said in an email to employees. 'These are actions that we do not take lightly, but they are necessary given the current market dynamics.' General Motors said on Thursday that it will bolster production of trucks in its Fort Wayne, Ind., factory, Reuters reported on Thursday.
New York Times
03-04-2025
- Automotive
- New York Times
Ford offers discounts on cars and trucks as auto tariffs kick in.
Ford Motor said on Thursday that it was lowering prices on most of its vehicles to the same levels it charges employees in a bid to boost sales as President Trump's tariffs on imported cars took effect. The tariffs began on Thursday on vehicles imported from Mexico, Canada, Japan, Germany and other countries. The duties — 25 percent of the value of the vehicle in most cases — are expected to increase prices of new cars and trucks and dampen demand. About half the vehicles sold in the United States each year are produced in other countries. Mexico is the top source of those cars and Canada is among the largest. For three decades, the United States, Canada and Mexico have had a free-trade zone, and automakers have moved parts and vehicles freely among the three countries. Ford's new program, which the company is calling 'From America, for America,' could help reduce a large inventory of unsold cars. In February, Ford had more cars in inventory as measured by how many days it would take to sell them all than all but three other brands — Jaguar, Mimi and Dodge — according to Cox Automotive, a research firm. Ford's new discounts apply to all new 2024 and 2025 vehicles, except for specialty versions of the Bronco sport-utility vehicle; the Mustang sports car; Super Duty versions of F-Series pickups; and a few other models. 'Consumers will pay what we pay,' Rob Kaffl, Ford's director of U.S. sales and dealer relations, said in a statement. The automaker also said it was extending another incentive program in which buyers of new electric models get a home charger for free, along with the cost of installation. That offer is now valid until June 30. Ford had more than 568,000 vehicles in inventory at the end of March, up about 8 percent from a year ago.
