Ford has made a shocking announcement after President Donald Trump slapped 25 percent tariffs on all foreign-made cars and auto parts this week.
The American carmaker said Thursday that it will offer employee pricing – a discounted rate available to its workers – to all customers until June 2.
The megadeals could reduce retail prices by up to $10,000
The incentives apply to all new 2024 and 2025 vehicles, except for specialty versions of the Bronco sport-utility vehicle, Mustang sports car, Super Duty versions of F-Series pickups and a few other models.
Approximately 80 percent of Ford vehicles are built in the US, but the company faces the prospect of steep levies on imported vehicle parts.
The hope is to increase business and get ahead of any impact caused by the tariffs, which Trump said were imposed to help the industry ‘flourish like never before.’
Trump revealed the tariffs last month, promising they would go into effect on April 2 that has now been named ‘Liberation Day.’
However, market experts have warned that Americans could pay between $5,000 and $15,000 more, on average, for a new car due to the tariffs.
Ford said Thursday that it will offer employee pricing – a discounted rate available to its workers – to all customers until June 2. The the Bronco sport-utility vehicle is not includes in the discount
Ford launched the new ad campaign ‘From America, For America’ on Thursday, running it in traditional print media advertisements, television spots and social media, said Rob Kaffl, Ford’s director of US sales.
‘We’ve got a very healthy stock,’ Kaffl told the Detroit Free Press, referring to new vehicle inventory.
Cox Automotive reported that the automaker had more than four months of inventory in February, above the industry average of nearly three months.
‘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,’ said Kaffl.
‘So we feel by providing this message in ‘From America, For America,’ we’re providing some security.’
Ford used the ad to boast about having ‘the most hourly workers in the [US] and ‘assembling the most vehicles in the country.’
An anonymous Ford dealer told the Detroit Free Press that the F-150 XLT hybrid pickup, which costs $65,000, would go for $55,000 with the discount.
And the $36,300 Escape ST SUV would drop to $33,000.
The hope is to increase business and get ahead of any impact caused by the tariffs, which Trump said were imposed to help the industry ‘flourish like never before’
GM on Thursday announced a change in its production, increasing vehicle assembly in Indiana at its Fort Wayne plant.
GM said in a statement on Thursday that it will hire temporary workers for the assembly plant, saying that will be part of ‘operational adjustments’ at the plant ‘to support current manufacturing and business needs.’
While hundreds of more jobs will be available in Indiana, experts warned it would come at the cost of the consumer who could be forced to buy thousands of dollars more.
According to the Anderson Economic Group, that would be due to carmakers, including GM, importing parts from foreign nations.
Stellantis also said it will temporarily halt production of vehicles at its assembly plants in Mexico and Canada, The Hill reported.
The White House said American bought approximately 16 million cars, SUVs, and light trucks in 2024, and 50 percent of these vehicles were imports.
‘Studies have repeatedly shown that tariffs can be an effective tool for reducing or eliminating threats to impair US national security and achieving economic and strategic objectives,’ the March 26 press release sates.
‘A 2024 study on the effects of President Trump’s tariffs in his first term found that they ‘strengthened the U.S. economy’ and ‘led to significant reshoring’ in industries like manufacturing and steel production.’
The research, conducted by global management consulting firm McKinsey & Company, noted that global tariffs on steel resulted in over 4,000 new American jobs.
Tariffs on steel and Chinese imports were reported to have ‘reduced imports of affected steel products by 24 percent’ and ‘increased U.S. production of steel products by 1.9 percent,’ according to the report.
However, research from the Federal Reserve Bank of New York determined that Trump’s first-term tariffs on China negatively impacted the US economy.
The team found the US stock market fell 11.5 percent on days when tariffs were announced, resulting in a $4.1 trillion loss in firm equity value.
