Tariffs will cost Ford $1.5 billion

[ChasingCoral]

Tariffs are hitting most automakers pretty hard, but Ford is estimating some truly staggering numbers for the rest of the year. The company already estimates that it's been hit for $200 million this year, and it expects that number to reach $1.5 billion through the end of 2025. From the Detroit Free Press:

Despite the automaker's robust sales momentum last month as car buyers got ahead of anticipated price hikes from President Donald Trump's autos tariffs, most of Ford's results came in lower when compared with a year ago. Ford said tariffs impacted its adjusted earnings before interest and taxes (EBIT) by $200 million in the quarter.

...

Ford said that based on its expectations right now, tariffs will inflict a $1.5 billion hit to the automaker's adjusted EBIT for full year 2025, but that estimate is "subject to ongoing tariff-related policy developments." Beyond, that Ford CFO Sherry House told Wall Street analysts that Ford has already ordered some equipment that is coming from overseas that will be tariffed, therefore, "we do expect we'll have capital expenditure impact as well" as the $1.5 billion impact.

Ford is ostensibly the kind of clean-cut, red-blooded all-American automaker that these tariffs are meant to protect. If the company is being hit this hard already, with more knocks to come, what happens to other carmakers? When is it no longer worth it to sell in the United States?

Read More: https://www.jalopnik.com/1852824/tesla-sales-2025-decline/

Sponsored

 

[stoopid]

But I thought Trump said China was going to pay for this? Or was that Mexico?... ?

 

[Booradley]

Ford will raise prices in kind. They can’t possibly take the full brunt of tariffs.

 

[dadofahusky]

i cant wait to hear the republicans twist themselves in knots trying to make this all sound positive and good.

 

[Keytone]

Ford will raise prices in kind. They can’t possibly take the full brunt of tariffs.

Sales will drop for all such purchases, so do not assume increasing the cost satisfies the problem of the USA's punitively taxing of all items.

Further, retaliatory tariffs through to popular international boycotts of US products, tourism (already a measured 80% drop from the USA's greatest source being Canada at 20% for all US tourism) , and services will further depress the US economy.

A US government instituted depression returns depressed purchasing power combined with economic inclination to park one's money rather than purchase new widgets.

 

[MoonRiver]

But I thought Trump said China was going to pay for this? Or was that Mexico?... ?

We all then are Chinese or Mexicans. Who ended up eating the bill of building the wall in the south?

 

[zvez]

i cant wait to hear the republicans twist themselves in knots trying to make this all sound positive and good.

isn't this the beginning of the "new golden age"? ?

 

[zvez]

i cant wait to hear the republicans twist themselves in knots trying to make this all sound positive and good.

and 40% of the population will believe it..........................

 

[Krabbit]

Ford Motor's annual gross profit for 2023 was $25.641B, an 8.37% increase from 2022.
Im pretty sure they could absorb 1.5B if they wanted to...

And less anyone claim thats gross, not net:

In 2023, Ford Motor Company's net income attributable to the company was over 17.9 billion U.S. dollars. This was a slight decline from the net income recorded in 2021. The net profit margin improved to 2.47% in 2023 compared to a negative figure in 2022.

2
Im pretty sure they could live without 10% of their net profit. Its not like they are "scraping bye."

 

[zvez]

Ford Motor's annual gross profit for 2023 was $25.641B, an 8.37% increase from 2022.
Im pretty sure they could absorb 1.5B if they wanted to...

And less anyone claim thats gross, not net:

In 2023, Ford Motor Company's net income attributable to the company was over 17.9 billion U.S. dollars. This was a slight decline from the net income recorded in 2021. The net profit margin improved to 2.47% in 2023 compared to a negative figure in 2022.
2
Im pretty sure they could live without 10% of their net profit. Its not like they are "scraping bye."

Dunno, the second link you posted had this to say:


" Net income attributable to the Ford Motor Company was around 5.9 billion U.S. dollars in 2024, which represented a year-over-year increase for the company. Amid the outbreak of the coronavirus pandemic in the company's largest markets, Ford's revenue contracted by 22 percent and fell to 127 billion U.S. dollars in 2020, but have rebounded since. However, automotive supply chain disruptions due to the semiconductor shortage and Russia's invasion of Ukraine contributed to the net loss the company recorded in 2022. By 2023, despite disruptions due to strikes in Ford's U.S. assembly plants, the company recorded a steep year-over-year net income growth. "

I've checked a couple different sites and the net income seems to be in the 5.9 billion range so not sure where you get the 17.9 billion number. So absorbing 1.5 billion wouldn't be quite so easy.

Another which shows net income by year: https://www.macrotrends.net/stocks/...or net income for,a 319.43% decline from 2022.

 

[StevenC56]

isn't this the beginning of the "new golden age"? ?

I think that meant we are going to get nailed with 4 years of golden showers, or worse.

 

[Keytone]

Im pretty sure they could live without 10% of their net profit. Its not like they are "scraping bye."

Ah, federal corporate taxes to be passed along to US consumers - all of which will certainly initiate a recession, if not a once-in-a-century-depression.

Presidential decrees and unreasoned instability that does harm the auto-industry and US production. Why produce or even attempt plans to relocate and increase production when demand will plummet and Trumpists are but a political blip?

 

[DesignMatters]

I think that meant we are going to get nailed with 4 years of golden showers, or worse.

You’re projecting.

 

[StevenC56]

You’re projecting.

It's more like an erratic uncontrolled splatter than a projection.

 

[Krabbit]

Dunno, the second link you posted had this to say:


" Net income attributable to the Ford Motor Company was around 5.9 billion U.S. dollars in 2024, which represented a year-over-year increase for the company. Amid the outbreak of the coronavirus pandemic in the company's largest markets, Ford's revenue contracted by 22 percent and fell to 127 billion U.S. dollars in 2020, but have rebounded since. However, automotive supply chain disruptions due to the semiconductor shortage and Russia's invasion of Ukraine contributed to the net loss the company recorded in 2022. By 2023, despite disruptions due to strikes in Ford's U.S. assembly plants, the company recorded a steep year-over-year net income growth. "

I've checked a couple different sites and the net income seems to be in the 5.9 billion range so not sure where you get the 17.9 billion number. So absorbing 1.5 billion wouldn't be quite so easy.

Another which shows net income by year: https://www.macrotrends.net/stocks/charts/F/ford-motor/net-income#:~:text=Ford Motor net income for,a 319.43% decline from 2022.

You didnt see where my number was for 2023 and yours was 2024?
But still... How many Billions does a company need to make in profit before they wont pass on unforeseen expenses to the customer? What do you feel is "enough profit?" My point being that its not ALL the govt here. The companies RAKING in the cash are ALSO responsible for inflation/rising costs. Not because they are not making enough money, but in my mind, because of greed. Ford cant get by on 4.5 billion in profit in a year? I suspect we ALL know they can. AND cant the deal maker in chief point that out to them? I thought he was the "best" at deals.

Sponsored