Ford says it’ll extend its employee pricing deal one more month and then probably hike prices
Ford’s going to eat its tariff hit for one additional month, extending its employee pricing discount through July 4.
CEO Jim Farley, who announced the news in an interview on CNN, said the company won’t rule out price hikes after the extension.
The announcement is in line with reports from earlier this month that Ford — barring tariff relief — will “make vehicle pricing adjustments” for vehicles produced in May, set to arrive on lots in June or July. Automakers’ tariff pricing strategies appear to have a close relationship to their US inventory levels. Earlier in April, Volkswagen said it has enough US inventory for two months of sales, matching the length of its price freeze.
Competitor pricing moves and the 25% tariffs on auto parts set to go into effect Saturday will be behind any future Ford price hikes. Farley told CNN that the company can’t even buy certain parts in the US and said “parts are critical” to keeping prices affordable for US customers.
Yesterday’s White House tariff relief announcements — which seem to significantly favor Elon Musk’s Tesla — did little to ease investor fears that automakers won’t make it through tariffs without significant damage.
