- Tariff Impact: Recent tariffs are likely to push costs up for U.S. automakers, as imported parts become more expensive.
- Manufacturer Responses:
- Many automakers are expected to increase prices to protect their profit margins.
- Ford, however, is going against the grain by offering discounts despite these challenges.
- Employee Pricing Plan:
- This plan provides discounts below the dealer invoice price.
- Additional incentives may further reduce costs when applicable.
- Ford aims to lower vehicle prices to counteract the impact of looming tariffs.
- Eligible Models:
- All 2024-2025 Ford and Lincoln models are included, except flagship SUVs (Expedition, Navigator) and specialty lines like the Raptor and Mustang series.
- While official price updates are not yet listed on Ford's website, discounts can be inferred from changes in MSRP.
- Electric and SUV Models:
- The 2024 Mustang Mach-E SUV is now priced at $36,495, down from $39,995.
- The 2024 Ford Bronco 4x4 is now $37,995, reduced from $39,630.
- Non-Eligible Models:
- The 2025 Expedition SUV has seen a price increase to $62,000, up from $55,630.
- Luxury Segment:
- The Lincoln Nautilus remains at its current price, despite the potential impact of tariffs.
- Inventory Overload:
- Ford is strategically using its extensive inventory, much of which consists of pre-tariff imports.
- The company aims to boost sales and clear stock by June 2, taking advantage of a 126-day supply surplus.
- Future-Proofing and Negotiations:
- This strategy generates short-term revenue amidst market uncertainties.
- Ford is positioning itself for possible negotiations with the Trump administration by demonstrating strategic moves that counter tariff threats.
Ford’s daring price cuts are a strategic counter to tariff-driven cost increases, aiming to clear pre-tariff inventories and stimulate sales. This calculated gamble may strengthen Ford’s position ahead of the full effects of tariffs, leveraging existing stock advantages while opening the door for future negotiations.
