The truck is shown after clearing US customs and entering the US from Tijuana along the US-Mexico border at Otaymesa port in San Diego, California, and then entering the US-Mexico border on April 2, 2025.
Mike Blake | Reuters
Detroit – Executives have been set to take effect as President Donald Trump’s imported vehicles 25% tariffs have been set to take effect Ford Motor I scrambled to understand how to deal with the new taxation.
While they and their industry counterparts are still trying to navigate the impact, Ford has decided to move quickly into one area by offering US consumers an employee pricing program called “America, America.”
Such programs are historically controversial as they sell vehicles closest to or below the dealer’s bill price and eat up retailers’ already harsh profit margins. However, Ford decided it was right to launch a program to promote the largest U.S. business of any automaker and to support sales amid the economic uncertainty of consumer interest and Trump’s tariffs.
“We understand that these are times of uncertainty for many Americans. Whether we navigate the complexities of economic change or need a reliable vehicle for our families, we want to help,” Ford announced the program Thursday morning. “We have a retail inventory to do this and there are many options for customers who need the vehicle.”
As some industry analysts told CNBC, this is an example of whether some automakers are trying to find something rewarding “in the chaos” or trying to “capitalize the moment” in tariffs.
Ford dealer Mark McSaber, owner of Orate Ford Lincoln near Kansas City, Kansas, said: “It’s really exciting to see Ford step up and lead this program. I think it’s a great play. …It’s a really real deal for the customers.”
Ford, which financially supports retailers with its program, spoke to dealers about it a day before the fees that will take effect Thursday. A new program has been released, running until June 30th, hours after taxation began.
Heading for tariffs, Ford was considered one of the best automakers, especially because of the US production footprint dedicated to trucks.
Ford’s shares outperformed this week’s rivals, down 1.4% over the week. It is compared to Chrysler’s parents Stellantis Lose 14.2% General Motors It will decrease by 5.4% that week.
Car inventory
Others follow Ford’s strategy. This has also been supported by the higher prices and profits of vehicles since the Covid pandemic. Crosstown rival Stellantis announced a similar employee pricing program on Friday, but said Hyundai Motor would not raise prices for at least two months to ease consumer concerns.
“It makes sense for them to try and capitalize the moment,” said Erin Keating, executive analyst at Cox Automotive.
Keating points out that Ford and Stellantis (the latter based in Europe but with major businesses and brands in the US) remind consumers that they are “domestic” companies. Automakers also have stocks, including older models, and need to sell them to make way for new vehicles.
“The room for these new vehicles to come into the showroom and try to maintain their market share makes a lot of sense,” Keating said. “At the level of demand, anyone who can beat the price there is right now can hold market share longer than others and maybe catch something from someone who is willing to meet their current customer.”
According to Cox Automotive, Ford and Stellantis brands such as Ram Trucks and Jeep are among the highest day supply of vehicle inventory in the automotive industry.
The companies were also one of the only major automakers to report a significant drop in vehicle sales this week. Stellantis was about 12%, while Ford was down 1.3% from the previous year.
Cox reports that the average National Days supply vehicle averaged 89 days, with these brands 110 to 130 days. The automotive industry has historically considered that healthy days supply is between 60 and 80 days.
There is a high demand for vehicles in light of tariffs and fears over potential price increases. Consumers gathered at dealer showrooms late last month as Trump confirms tariffs are coming, leading to significant sales for many automakers.
A Ford Rupter Pickup Truck for sale at a Ford Dealer in Glendale, California on August 21, 2024 is on display.
Mario Tama | Getty Images
Cox Automotive estimated it sold 159 million units in new vehicle sales in March, marking the best month for sales volume in four years, significantly exceeding forecasts.
“It was the best weekend I’ve seen in a very long time, including last week and last weekend,” Hyundai Motor’s North American CEO Randy Parker told media phone on Tuesday. “I’ve been doing this for a very long time, so I think a lot of people are rushing this weekend, especially to beat the tariffs.”
We are selling now because we don’t have guaranteed future sales and we could help if there is a recession in the US. JP Morgan on Friday raised the possibility of a US and global recession from 40% to 60% by the end of the year.
“It makes sense because demand is there right now, and everyone says, ‘We have to get it right now’ (providing consumer incentives) and we might go ahead and enjoy the benefits in case we get into a recession,” Keating said.
