How are auto makers going to handle tariffs?

[dbsb3233]

Well, ford can up the dealer invoice to cover the tariffs. Then they become a “dealer problem”. At the end of the day, I can see Ford putting a “pause” on US sales of the Mustang Mach E and diverting production to EMEA (including the UK), Canada, Oceania, APAC (excluding China since the Mexican-built cars don’t have all the Chinese spyware) and central/South America.

Yeah, I don't know the technicalities of whether the dealer is buying the car from the Ford plant in Mexico (and thus might be responsible for the tariff themselves), or whether Ford has to pay it. But it really doesn't matter, it's all the same to buyers.

And likely moot, because as you say, it's unlikely that any new MMEs will be delivered to the US while the 25% is in effect. Dealers will be able to live off lot inventory for a while, just like they do when a plant closes for a while for retooling, labor strikes, etc.

Update: the 25% tariff appears to have been delayed on automobiles for another month. Looking for confirmation.

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[awp0]

This is wild. I can't imagine waiting patiently for an MME order, tariffs hit in the meantime, and then being asked to fork over 25% more on top of my quoted price. I would walk away from that deal in a heartbeat. Ford should eat this "transition" cost, and increase the prices for only new orders (if they increase it at all).

Anyway, this is apparently what America wanted. It's exactly what was promised during compaigning.

 

[StevenC56]

This is wild. I can't imagine waiting patiently for an MME order, tariffs hit in the meantime, and then being asked to fork over 25% more on top of my quoted price. I would walk away from that deal in a heartbeat. Ford should eat this "transition" cost, and increase the prices for only new orders (if they increase it at all).

Anyway, this is apparently what America wanted. It's exactly what was promised during compaigning.

Actually this is not what 48% of the voting public wanted. And the person that lost the election warned everyone that this would happen. Fool me once, shame on you. Fool me twice, shame on me.

 

[highland58]

This is wild. I can't imagine waiting patiently for an MME order, tariffs hit in the meantime, and then being asked to fork over 25% more on top of my quoted price. I would walk away from that deal in a heartbeat. Ford should eat this "transition" cost, and increase the prices for only new orders (if they increase it at all).

Anyway, this is apparently what America wanted. It's exactly what was promised during compaigning.

I would prefer that my newly built MME sit in Cuatitlan until the tariff is greatly reduced or eliminated. I'm not cancelling yet, waiting to see what happens, but I will cancel if has a significant tariff when it gets here.

 

[dbsb3233]

This is wild. I can't imagine waiting patiently for an MME order, tariffs hit in the meantime, and then being asked to fork over 25% more on top of my quoted price. I would walk away from that deal in a heartbeat. Ford should eat this "transition" cost, and increase the prices for only new orders (if they increase it at all).

For special orders, yes, those will likely get declined or delayed. Those buyers will likely move on to something else (different model, or try to find the closest to what they want in existing lot inventory among various dealers).

Or try to wait it out. There's a strong possibility these tariffs don't last long and it all goes back to normal shortly when sufficient concessions are made.

 

[awp0]

Actually this is not what 48% of the voting public wanted. And the person that lost the election warned everyone that this would happen. Fool me once, shame on you. Fool me twice, shame on me.

I'm with you. And I did not intend to imply that everyone in America wanted it! We were all clearly warned, and I guess people didn't believe it or didn't care.

 

[awp0]

I would prefer that my newly built MME sit in Cuatitlan until the tariff is greatly reduced or eliminated. I'm not cancelling yet, waiting to see what happens, but I will cancel if has a significant tariff when it gets here.

Good point. Waiting is another option (for as long as you can, anyway).

 

[dbsb3233]

One-month delay on tariffs for autos confirmed.

https://thehill.com/homenews/admini...elay-on-canada-mexico-tariffs-for-automakers/

 

[Snakebitten]

I would prefer that my newly built MME sit in Cuatitlan until the tariff is greatly reduced or eliminated. I'm not cancelling yet, waiting to see what happens, but I will cancel if has a significant tariff when it gets here.

Similar sentiment regarding the Maverick I have on special order. It's for my daughter in law and was a surprise from me. Worst case scenario I will have her choose something else. Best case scenario, all this conjecture is just conjecture.

Time will tell.

I do know that I'm not going to be twisted by it either way. I've survived a lot of American History, at my age. ?

 

[highland58]

I would prefer that my newly built MME sit in Cuatitlan until the tariff is greatly reduced or eliminated. I'm not cancelling yet, waiting to see what happens, but I will cancel if has a significant tariff when it gets here.

I do have a deposit on a Rivian R2, so that is my backup...

 

[MonkeyNutz]

Tariffs are a Ford problem, not a dealer problem.

If the dealer is raising the price on the consumer, the dealer is taking advantage.

Um…. Not sure you actually read what I typed?

Yes, tariffs are a Ford problem. if Ford raises the price on the car, due to tariffs, then I’m not buying. Dealership is worried about what tariffs will do to their sales because no one knows the extent of the impact yet. I’m paying less than MSRP on my new ‘25 Premium from a dealership I have a good relationship with.

Trump administration just gave a 30-day extension on tariffs for US automakers. It’s not so much about giving them relief or an exemption, it’s to give 30 days to figure it out.

 

[MonkeyNutz]

I do have a deposit on a Rivian R2, so that is my backup...

Still a year away…. I have a reservation for an R2 as well.

 

[E90alex]

It’s too soon to make any decisions until its at the dealer and they tell you what the final price is. As posted above he already rolled over for the automakers for another month so it’s just too uncertain how it will actually play out until the car is here and the numbers are in front of you.

Of course if you don’t want the wait or the anxiety then you can pick up a leftover 2024 or try to scoop up a 2025 that has already crossed the border and is not pre sold. Or buy something else entirely. I’m still waiting for mine and hoping for the best.

 

[MonkeyNutz]

And likely moot, because as you say, it's unlikely that any new MMEs will be delivered to the US while the 25% is in effect. Dealers will be able to live off lot inventory for a while, just like they do when a plant closes for a while for retooling, labor strikes, etc.

The problem is that there is no lot inventory for MMEs or Mavericks. I’m in an area where EVs are super popular and the only lot inventory of MMEs around here are the one or two ‘24s that straggled in late and are awkwardly sitting on the lot with mark-ups because the ‘25s haven’t arrived yet and they’re hoping someone will just have to buy one and may eat the cost with the 0% financing. And MME sales have been brisk with limited production, there has been relatively little in the way of lot inventory for the past year except for a few places where EV’s just don’t sell.

Ford will probably let some pile up at the factory as they try to work a deal or exemption or figure out how to cover so tariffs don’t destroy their sales. But they may shift to producing and shipping more to the UK and EU. Sales were already increasing in those markets and with the slide in Tesla sales it would be a good time to push more that direction.

I know Mary at GM is ready to go to war over the tariffs, planning to sue, possibly outright refusing to pay to see if Trump would actually embargo them. GM’s best-selling line of vehicles — Sierra and Silverado 1500 — are assembled in Canada. What would Ford/ Farley do if the F-150 was being built in Canada or Mexico? It’s bad enough when they can already sell all the MMEs they can build, even without qualifying for the $7500 tax incentive, and the Maverick has been super popular…

I’m betting Ford is going to work overtime on those production lines, assuming they have all their components, and build and ship as many cars as possible across the border in the next 30 days.

 

[MonkeyNutz]

Of course if you don’t want the wait or the anxiety then you can pick up a leftover 2024 or try to scoop up a 2025 that has already crossed the border and is not pre sold. Or buy something else entirely. I’m still waiting for mine and hoping for the best.

Yep, waiting to see what happens…. All we can do.

There are only 2 or 3 ‘24s left in inventory within 500 miles of me. And they‘ll cost me a good bit more than the ‘25. Ugh…. The time to buy a ‘24 was back in late December when they had all the killer incentives. ‘25s have been really slow to ship out. I haven’t even seen any indication that one has been delivered to a customer yet. There probably has been a delivery or two as I know some have crossed the border. But there’s been a lot of initial delays. I feel a lot better about the one we have on order with it being in production and the 30-day pause on auto tariffs.

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