Ford's Bold Move: Discounted Employee Pricing Amid Tariffs

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Ford's Bold Move: Discounted Employee Pricing Amid Tariffs - Image for illustration purposes only
04-03-2025motortrend
As new tariffs begin to impact the automotive industry, Ford has launched a surprising promotional campaign offering discounted employee pricing to all customers. This initiative raises eyebrows, especially considering the expected price increases on vehicles due to these tariffs.

Impact of Tariffs on Pricing

- Increased Costs: Experts predict that these tariffs will drive up prices on new cars, parts, and even used cars.
- Domestic Automaker Dilemma: Automakers may face significant profit margin reductions due to higher costs associated with imported parts.

Ford's Employee Pricing Strategy

Ford is promoting its generous "From America. For America." campaign by extending employee pricing to everyone, not just employees or retirees. This promotional event runs from April 3 to June 2, 2023, but it excludes certain models such as:

- 2025 Ford Expedition
- Lincoln Navigator
- F-Series Super Duty trucks
- Specialty Mustangs

Employee Pricing Basics

- Cost Structure: Customers pay slightly below the dealer invoice price and may receive additional incentives.
- MSRP Observations: Some Ford vehicles have lower MSRPs as of April 3, such as the electric Mustang Mach-E, which is now priced at $36,495 (down from $39,995).

Inventory and Sales Motivation

Ford's strategy appears to be driven by a large inventory, with over 126 days of supply as of February. This initiative is designed to move existing stock, which is not affected by the tariffs since these vehicles are already on lots or have been imported.

Conclusion

Ford’s unexpected pricing strategy not only aims to attract buyers in a challenging market but may also serve as a tactical move in negotiations with the Trump administration regarding tariffs. As the automotive industry adapts to new pricing realities, Ford's campaign stands out as a bold approach amid rising costs.

  

Summary: Ford is offering discounted employee pricing to all consumers in response to new tariffs, defying expectations of price increases. This initiative, combined with the management of existing inventory, aims to boost sales and negotiate favorably with policymakers.

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