Ford Motor plans to announce discounts on several models as of Thursday, according to three reuters sources, relying on their healthy inventory to offer customers thousands of dollars discount while competitors increase prices to absorb tariff costs.
Ford will offer its prices for employees – a discount rate available for the company workers – to all its customers, according to the sources. The program will be called “de América for America”, according to one of the sources.
Ford refused to comment.
The AutoBorn car manufacturer, Michigan, manufactures 80% of its vehicles sold in the US in the country, which provides greater protection against the tariffs of President Donald Trump. However, it still faces the possibility of strong levies on vehicle parts.
Lee: Trump tariffs will end the EU economic leadership: Wall Street Journal
Last week, Trump announced 25% tariffs on all car imports, which caused a shock in the world industry.
The United States is the largest car importer in the world and almost half of all cars sold in the country last year were imported, according to the Globaldata research firm.
This Wednesday, Trump extended tariffs at a base level of 10% for all imports, with higher rates for some countries. Ford’s actions fell after the announcement of the tariffs, as well as those of General Motors and Tesla.
Although under the order of Trump, the goods of Mexico and Canada that comply with the TMEC trade agreement between the three countries will remain largely exempt from tariffs, car and steel and aluminum exports are subject to separate tariff policies.
Barclays analysts said Ford was better positioned to resist tariffs given their high percentage of US production, while their general rivals Motors and Stellantis, Chrysler’s parent company, produce approximately half of their vehicles sold in the United States in the country.
In recent weeks, buyers have rushed to go to dealers to acquire cars before prices increase, which promoted car sales in March.
According to Cox Automotive, Ford dealers have more inventory than the average industry. Ford had more than four months of inventory in February, above the average industry of almost three months.
Lee: US Tariffs start on April 3
Cox also discovered that Ford incentive agreements were slightly lower than those of the industry in general in February, and that Ford agreements amounted to 6.7% of the average vehicle transaction price, while the average industry was 7.1%, or $ 3,392.
With Reuters information
Do you like to inform yourself for Google News? Follow our showcase to have the best stories
