Latest news with #MustangMachE
Yahoo
10-05-2025
- Automotive
- Yahoo
4 Ways Tesla's Price Cuts Could Reshape the EV Market
Tesla's latest round of price cuts is sending shockwaves through the electric vehicle world. And though these price adjustments may seem like short-term strategies to boost sales, they signal a broader shift in Tesla's long-term positioning and could reshape the future of the EV market. Check Out: Try This: Here are four ways Tesla's price drops could ripple through the industry. The Model Y now costs around the same as many mid-level gas-powered SUVs, especially if you're able to qualify for the $7,500 federal EV tax credit. That puts Tesla within reach for many first-time EV buyers who may have thought it was too expensive before. In other words, these price drops could be the push needed to get more people to buy electric cars and for EV adoption to pick up speed in the U.S. Be Aware: Tesla's price cuts are having a big impact on the used car market as well. According iSeeCars data, used EV prices have dropped sharply and are now about 11% lower than their gas-powered counterparts. That's pretty good news if you're shopping for a used EV, but not so great if you already own one. A steeper drop in resale value can hurt those who counted on their car holding its worth over time or planned to trade it in later. Tesla's price cuts are also putting lots of pressure on traditional car companies. Ford, for example, has already slashed prices on the Mustang Mach-E in response, but keeping up with Tesla on price alone is going to be tough — unlike Tesla, legacy brands are often tied to higher labor costs, dealer networks and older production systems. If Tesla keeps undercutting the competition, other automakers may have to rethink their entire EV game plans. That could mean slowing down production, delaying new releases or revisiting their pricing strategies. Lowering prices isn't great for profit margins in the short term, but Tesla seems to be more focused on building dominance in the EV market rather than raking in quick cash. Elon Musk laid out this vision years ago — back in 2006 — when he shared his 'Master Plan.' The idea was to start with a high-end car, use the profits to fund a more affordable model, and keep going until Teslas were accessible to the masses. These latest price cuts line up quite well with that original plan. By making Teslas more attainable, the company is pulling more people into its larger ecosystem, which includes software subscriptions, charging solutions and self-driving features. Tesla's not playing by the old rules, and the rest of the industry might need to catch up. Tesla's bet is that the increase in market share and the resulting economies of scale will offset the risks of lowering prices and profit margins. Only time will tell if Elon Musk's master plan actually pans out. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying How Far $750K Plus Social Security Goes in Retirement in Every US Region 4 Things You Should Do if You Want To Retire Early 12 SUVs With the Most Reliable Engines Sources iSeeCars, 'Tesla Tops List of Used Cars With Biggest Price Drops.' Tesla, 'The Secret Tesla Motors Master Plan (just between you and me).' This article originally appeared on 4 Ways Tesla's Price Cuts Could Reshape the EV Market 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
09-05-2025
- Automotive
- Yahoo
Ford will raise the sticker price on cars imported from Mexico. It just said it didn't expect significant US price hikes
Ford is hiking the sticker prices for the three US models it imports from Mexico by up to $2,000 each, just days after executives said they didn't expect significant increases in industrywide car prices this year. The price increase was disclosed in a memo sent to Ford dealerships, first reported by Reuters but confirmed by Ford. Ford said the manufacturer's suggested retail price (MSRP), also known as the 'sticker price,' would increase between $600 to $2,000 per vehicle, depending on the features. Ford said the price hike doesn't apply to vehicles currently on the lot, but will apply to those built after May 2, which start arriving at dealerships in several weeks. 'This is our usual mid-year pricing actions combined with some tariffs we are facing,' Ford spokesman Said Deep told CNN. '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.' Since April 3, imported vehicles have faced a tariff of up to 25%. Most of the major automakers import some of their US vehicles from foreign plants, including those in Mexico. Ford assembles three US models in Mexico: the Ford Mustang Mach-E electric vehicle, the Maverick midsize pickup and the Bronco Sport, an entry-level SUV. Those models accounted for about 17% of Ford's first quarter US sales. The price hike does not mean customers will necessarily pay $2,000 more per vehicle. Retail prices are set across millions of individual negotiations between buyers and dealers, although the MSRP is typically a starting point. Despite the tariff on car imports, and an additional tariff on imported parts raising the cost of production, most automakers have been slow to announce price increases pegged to import taxes. Ford said last week it would continue to offer customers the promotional 'employee pricing' through July 4. Ford says it has a sufficient inventory of vehicles built and imported before tariffs took effect to handle purchases through that date. During a media briefing Monday, Ford CFO Sherry House would not comment on Ford's own pricing plans, but said she didn't expect new car pricing in the United States to increase significantly. Ford itself said it expects the tariffs will cost it about $1.5 billion through the rest of this year. 'We now expect industry pricing related to tariffs (to increase) about 1% to 1.5% in the second half,' she said.
Auto Blog
08-05-2025
- Automotive
- Auto Blog
Ford Increases Prices on Popular Models, Citing Tariffs
This move comes the same week the manufacturer pulled its earnings guidance for the year. Your favorite Ford may get a bit pricier. Amid growing car industry sentiment centered on the impact of new, hefty trade tariffs, Dearborn-based automaker Ford is raising prices of its Mexican-made cars for its U.S. customers. According to a new report by Reuters, a notice sent to dealers showed that prices on popular models like the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will receive a price bump by as much as $2,000. A Ford spokesperson told the outlet that the price increases will affect cars built after May 2, which are expected to arrive at U.S. dealers by late June. They noted that the price hikes reflect 'usual' mid-year pricing adjustments, along with 'some tariffs we are facing,' adding that the company has 'not passed on the full cost of tariffs to our customers.' The price increases affect some of Ford's more popular nameplates. According to data released by Ford, the three models experienced strong sales in 2024, as well as the first quarter of 2025. In Q1, Ford managed to move 21% more Mustang Mach-e EVs (11,607 in Q1 2025 v. 9,589 in Q1 2024) over the same time period last year and 5.7% more Bronco Sports (33,363 v. 31,565), though Maverick sales saw a slight 2.7% dip (38,015 v. 39,061). Ford's tariff impact Ford's announcement to its dealers comes the same week as it told investors and Wall Street analysts the full scope of the impact of cross-border tariffs on the automaker. The Administration stands firm on its 25% tariff on imported vehicles. However, President Trump recently softened his tariff policy regarding foreign auto parts, introduced a program that credits automakers for what is produced in the United States, and removed provisions that would make automakers pay double tariffs on raw materials. Following the footsteps of its crosstown rival General Motors, Ford suspended its full-year guidance on May 5, as it expects to take a roughly $1.5 billion gross hit to its earnings from the tariffs, hoping to offset $1 billion from $2.5 billion in tariff costs through internal actions and other adjustments. Preciously, Ford expected to take in earnings between $7 billion and $8.5 billion for the year, however, CEO Jim Farley warned that it is still too early to predict exactly how much the recently implemented tariffs will actually affect the global supply chain. 'It's a pretty dynamic situation […] I think this is all really new for all of us,' Farley told analysts during its earnings call. However, the CEO also reiterated that the Ford's domestic footprint gives it an edge over its Detroit rivals, noting that 'this new environment in which automakers with the largest US footprint will have a big advantage.' Additionally, Farley noted on the earnings call that it 'supports the administration's goal to strengthen the US economy by growing American manufacturing,' as well as 'a level playing field globally for domestic and foreign OEMs.' 'We also appreciate the ongoing cooperation we've had with the administration,' Farley said. 'As America's largest auto manufacturer, our engagement with Washington is helping US policymakers better understand how their proposed policy changes would impact our industry and of course, our communities.' Final thoughts In recent media appearances, CEO Jim Farley reiterated that Ford makes most of its U.S.-bound vehicles in the U.S., citing in an April 30 Fox Business appearance that '85%' of such are built here. During the earnings call on Monday, he added that Ford 'assembled over 300,000 more vehicles in the US than our closest competitor,' including '100% of all our full-size trucks.' However, he also noted that while other manufacturers build in the U.S., adapting to the tariffs means that they would have to 'absorb higher costs, invest capital,' which 'will take time,' adding that 'It's not as simple as just assembling more vehicles in the US.' 'OEMs must also balance customer affordability, which means the ability to import parts tariff-free,' he said to analysts. With this in mind and Farley's idea of crediting automakers who export from U.S. factories, I do not expect Ford to be the only automaker to increase prices for its U.S. customers in light of recent tariffs, unless more comprehensive and fruitful dialogue between the current Administration and automakers happen.
CNN
07-05-2025
- Automotive
- CNN
Ford will raise the sticker price on the cars it imports from Mexico
Ford is hiking the sticker prices for the three US models it imports from Mexico by up to $2,000 each, just days after executives said they didn't expect significant increases in industrywide car prices this year. The price increase was disclosed in a memo sent to Ford dealerships, first reported by Reuters but confirmed by Ford. Ford said the manufacturer's suggested retail price (MSRP), also known as the 'sticker price,' would increase between $600 to $2,000 per vehicle, depending on the features . Ford said the price hike doesn't apply to vehicles currently on the lot, but will apply to those built after May 2, which start arriving at dealerships in several weeks. 'This is our usual mid-year pricing actions combined with some tariffs we are facing,' Ford spokesman Said Deep told CNN. '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.' Since April 3, imported vehicles have faced a tariff of up to 25%. Most of the major automakers import some of their US vehicles from foreign plants, including those in Mexico. Ford assembles three US models in Mexico: the Ford Mustang Mach-E electric vehicle, the Maverick midsize pickup and the Bronco Sport, an entry-level SUV. Those models accounted for about 17% of Ford's first quarter US sales. Despite the tariff on car imports, and an additional tariff on imported parts raising the cost of production, most automakers have been slow to announce price increases pegged to import taxes. Ford said last week it would continue to offer customers the promotional 'employee pricing' through July 4. Ford says it has a sufficient inventory of vehicles built and imported before tariffs took effect to handle purchases through that date. The price hike does not mean customers will necessarily pay $2,000 more per vehicle. Retail prices are set across millions of individual negotiations between buyers and dealers, although the MSRP is typically a starting point. During a media briefing Monday, Ford CFO Sherry House would not comment on Ford's own pricing plans , but said she didn't expect new car pricing in the United States to increase significantly. Ford itself said it expects the tariffs will cost it about $1.5 billion through the rest of this year. 'We now expect industry pricing related to tariffs (to increase) about 1% to 1.5% in the second half,' she said.
CNN
07-05-2025
- Automotive
- CNN
Ford will raise the sticker price on the cars it imports from Mexico
CNN — Ford is hiking the sticker prices for the three US models it imports from Mexico by up to $2,000 each, just days after executives said they didn't expect significant increases in industrywide car prices this year. The price increase was disclosed in a memo sent to Ford dealerships, first reported by Reuters but confirmed by Ford. Ford said the manufacturer's suggested retail price (MSRP), also known as the 'sticker price,' would increase between $600 to $2,000 per vehicle, depending on the features . Ford said the price hike doesn't apply to vehicles currently on the lot, but will apply to those built after May 2, which start arriving at dealerships in several weeks. 'This is our usual mid-year pricing actions combined with some tariffs we are facing,' Ford spokesman Said Deep told CNN. '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.' Since April 3, imported vehicles have faced a tariff of up to 25%. Most of the major automakers import some of their US vehicles from foreign plants, including those in Mexico. Ford assembles three US models in Mexico: the Ford Mustang Mach-E electric vehicle, the Maverick midsize pickup and the Bronco Sport, an entry-level SUV. Those models accounted for about 17% of Ford's first quarter US sales. Despite the tariff on car imports, and an additional tariff on imported parts raising the cost of production, most automakers have been slow to announce price increases pegged to import taxes. Ford said last week it would continue to offer customers the promotional 'employee pricing' through July 4. Ford says it has a sufficient inventory of vehicles built and imported before tariffs took effect to handle purchases through that date. The price hike does not mean customers will necessarily pay $2,000 more per vehicle. Retail prices are set across millions of individual negotiations between buyers and dealers, although the MSRP is typically a starting point. During a media briefing Monday, Ford CFO Sherry House would not comment on Ford's own pricing plans , but said she didn't expect new car pricing in the United States to increase significantly. Ford itself said it expects the tariffs will cost it about $1.5 billion through the rest of this year. 'We now expect industry pricing related to tariffs (to increase) about 1% to 1.5% in the second half,' she said.
