As tariffs threaten to increase car prices, automakers are rolling out discounts primarily to:
- Stimulate sales in light of consumer apprehension.
- Clear out existing inventories.
Automakers like Ford, which builds most of its vehicles in the U.S., are in a strong position to offer employee pricing to consumers, saving them thousands of dollars.
- Discount Scope: Stellantis will provide discounts on most 2024 and 2025 models until April 30, with the exception of certain specialty models like the Ram 1500 RHO and Jeep Rubicon 392.
- Customer Focus: Through the "America’s Freedom of Choice" initiative, customers can decide between employee pricing or cash incentives.
While consumers benefit from discounts, Stellantis employees are facing challenges:
- Production Halts: Unfortunately, good news for buyers coincides with setbacks for workers, including temporary layoffs in Canada, Mexico, and approximately 900 U.S. employees.
- Shutdowns are affecting plants that produce key models, such as the Chrysler Pacifica and Jeep Compass.
- Launch Date: Ford launched its "From America, For America" campaign on April 3, coinciding with the implementation of the tariffs.
- Discount Availability: This program, running until June 2, offers substantial savings on most models, except for specialty vehicles like the Raptor and Lincoln Navigator.
Beginning May 3, a diverse range of vehicle components, including engines, transmissions, and batteries, will also be subject to a new 25 percent tariff.
Summary: In response to tariff-induced pricing concerns, Ford and Stellantis have introduced employee pricing discounts to encourage sales and manage inventory levels. However, these benefits come alongside looming production halts and temporary layoffs for some employees. The impending tariffs on parts may further complicate the automotive market, potentially leading to increased vehicle costs in the long run.
