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Ford, more tariff-proof than rivals, is discounting most of its vehicles to twist the knife

About 80% of US-sold Ford vehicles are built in the US, giving the automaker more tariff armor than rivals like GM and Stellantis.

While consumers are bracing for price increases from automakers, Ford’s jumping on its position and offering an employee pricing discount to all customers in a new ad campaign called “From America, For America.”

Employee pricing will be applied to most 2024 and 2025 Ford models through the beginning of June. That puts the US carmaker, which says it has a healthy new vehicle inventory rate at its dealerships, in a position to potentially capitalize on tariff turmoil.

Ford, along with its rivals, cautiously enjoyed a sales surge in the lead-up to President Trump’s 25% auto tariffs that went into effect Thursday. Ford said dealership sales swelled 19% in March. Hybrid sales jumped 33% over Q1, and EVs rose 12%. Ford’s overall quarterly sales total declined 1% due to a fleet sales drop-off. GM’s sales spiked 17% in Q1 from a year ago.

An additional 25% tariff on auto parts (the US imported $192 billion worth of them last year) is set to go into effect on May 3.

Employee pricing will be applied to most 2024 and 2025 Ford models through the beginning of June. That puts the US carmaker, which says it has a healthy new vehicle inventory rate at its dealerships, in a position to potentially capitalize on tariff turmoil.

Ford, along with its rivals, cautiously enjoyed a sales surge in the lead-up to President Trump’s 25% auto tariffs that went into effect Thursday. Ford said dealership sales swelled 19% in March. Hybrid sales jumped 33% over Q1, and EVs rose 12%. Ford’s overall quarterly sales total declined 1% due to a fleet sales drop-off. GM’s sales spiked 17% in Q1 from a year ago.

An additional 25% tariff on auto parts (the US imported $192 billion worth of them last year) is set to go into effect on May 3.

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Ford joins GM in backing off of its EV tax credit extension plan following GOP criticism

Ford, despite benefiting from an electric sales surge in recent months, is giving up on a clever accounting plan to extend the expired $7,500 EV tax credit to some of its customers.

Like its rival GM earlier this week, Ford on Thursday night confirmed to Reuters that it will not claim the tax credit, backing off from its short-lived leasing strategy.

The automakers’ plan was to extend the subsidy by using their financial arms to put down payments on electric vehicles already on their dealers’ lots in late September. Those transactions would qualify for the credit, and Ford and GM could pass the discount on to customers through leases.

But the strategy angered GOP senators, who last week wrote a letter to Treasury Secretary Scott Bessent accusing the automakers of “bilking” taxpayers.

Ford CEO Jim Farley last month said he expects the end of the tax credit to cut EV sales in half.

The automakers’ plan was to extend the subsidy by using their financial arms to put down payments on electric vehicles already on their dealers’ lots in late September. Those transactions would qualify for the credit, and Ford and GM could pass the discount on to customers through leases.

But the strategy angered GOP senators, who last week wrote a letter to Treasury Secretary Scott Bessent accusing the automakers of “bilking” taxpayers.

Ford CEO Jim Farley last month said he expects the end of the tax credit to cut EV sales in half.

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