How are auto makers going to handle tariffs?

[Kamuelaflyer]

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. ?

If the April 2 tariffs happen for cars, and I suspect they will, my prediction would be that eventually Maverick production would move to the US. They will still result in price increases for a variety of reasons, but the truck is too popular to cancel imo.

The issue would be finding an assembly plant that can handle another vehicle. That leaves the mme and Bronco Sport in a tougher spot and of those two, the mme is the odd man out. I wouldn’t expect to see it sold here if the tariffs persist.

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[Snakebitten]

Since conjecture is allowed, I wouldn't be surprised if all a manufacturer had to do is make a formal agreement to move manufacturering with some future target date, accompanied with milestones for verification tracking, and have tarrif exceptions given.

It's all about business dealings vs the public posturing.

 

[dbsb3233]

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.

When I was last at my dealer about a month ago (Interstate Ford), there were at least a dozen MMEs on the lot. Saw a similar number of Mavericks. Not sure how representative that is of other dealers in CO, but that's about as many as I've seen there over my occasional stop-ins over the last 4 years. I usually drive through the lot to check them out just out of curiosity.

 

[CarlSagan82]

And I see nothing has changed with this brilliant strategy. Except they better build billion dollar factories in about a month? This isn’t going to turn out well

 

[StevenC56]

And I see nothing has changed with this brilliant strategy. Except they better build billion dollar factories in about a month? This isn’t going to turn out well

As usual he doesn't have a clue how anything really works. He just snaps his fingers and expects the impossible to happen at his order. Then his base applauds everything he says and does no matter how wrong and damaging it is for the country.

 

[Snakebitten]

When I was last at my dealer about a month ago (Interstate Ford), there were at least a dozen MMEs on the lot. Saw a similar number of Mavericks. Not sure how representative that is of other dealers in CO, but that's about as many as I've seen there over my occasional stop-ins over the last 4 years. I usually drive through the lot to check them out just out of curiosity.

It's true that the dealerships actually have inventory of 2024 Mavericks. Which also is the first time the Maverick has ever had any substantial inventory. I also would have purchased a 2024 for my daughter in law if Ford offered the Hybrid Maverick in AWD in 2024.
Alas, the actual Maverick I want her to have is very difficult to find.

Maverick Lariat AWD 4K towing.

We will see. I'm a patient old goat. ?
If when it arrives, if I'm not happy with the situation, I'll figure out a solution that solves my dilemma. First world problems. Very blessed to even have the kind of options that we have.

 

[Snakebitten]

And I see nothing has changed with this brilliant strategy. Except they better build billion dollar factories in about a month? This isn’t going to turn out well

As usual he doesn't have a clue how anything really works. He just snaps his fingers and expects the impossible to happen at his order. Then his base applauds everything he says and does no matter how wrong and damaging it is for the country.

Repeat post:

Since conjecture is allowed, I wouldn't be surprised if all a manufacturer had to do is make a formal agreement to move manufacturering with some future target date, accompanied with milestones for verification tracking, and have tarrif exceptions given.

It's all about business dealings vs the public posturing.

 

[dbsb3233]

If the April 2 tariffs happen for cars, and I suspect they will, my prediction would be that eventually Maverick production would move to the US. They will still result in price increases for a variety of reasons, but the truck is too popular to cancel imo.

The issue would be finding an assembly plant that can handle another vehicle. That leaves the mme and Bronco Sport in a tougher spot and of those two, the mme is the odd man out. I wouldn’t expect to see it sold here if the tariffs persist.

My guess is the China tariffs are more long-term and will cause some relocation of manufacturing (maybe not cars but other products), but I doubt the Mexico/Canada tariffs will. They seem less aimed at unfair/imbalanced trade (although there's some of that) and more at using them as leverage for border issues (like the flow of fentanyl). So I don't expect them to last when CA/MX improve efforts there.

Plus I think it takes at least a year of retooling and training and supply chain shifts to move auto production to another plant. And then there's still the biggie that caused so many US plants to move to Mexico in the first place: high UAW labor costs and the constraints that make it hard for US automakers to cut costs and make changes. (Especially after the last strike and new contract that went way up.)

 

[Ford_orr]

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.

You get the government you deserve. Can't blame the Electoral College this time around. We deserve what's coming.

 

[StevenC56]

You get the government you deserve. Can't blame the Electoral College this time around. We deserve what's coming.

For those of us who didn't vote for this, why do we deserve it? Answer is, we don't. But here it is anyway.

 

[dbsb3233]

You get the government you deserve. Can't blame the Electoral College this time around. We deserve what's coming.

And had.

 

[Mach1E]

No. If the car was imported after midnight yesterday, there’s a tariff on it. The manufacturer will pass all or part of that cost on to their customer. That customer, the dealer, will do the same. The poster you were responding to has an EV slated for production this week. That car, if built, will be subject to tariffs. The alternative car they’re looking at is already in the country and therefore not subject to tariffs. The dealer with that car charges MSRP for the Mach-e — that’s not uncommon.

They can’t and shouldn’t pass that on if they have an agreed price.

Dealer would already have an agreed invoice and consumer has an agreed selling price.

Like I said, it would be a Ford problem.

Of course none of this matters since Trump just gave the car manufacturers an extra month with no tariffs. ?‍

 

[Mach1E]

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.

I was responding to what you said about the “other dealer” charging MSRP in response to the tariffs. I think that dealer is taking advantage as their costs likely didn’t change a penny.

 

[dbsb3233]

They can’t and shouldn’t pass that on if they have an agreed price.

Dealer would already have an agreed invoice and consumer has an agreed selling price.

Like I said, it would be a Ford problem.

Of course none of this matters since Trump just gave the car manufacturers an extra month with no tariffs. ?‍

Problem is I don't think a buyer ordering a new car actually has a contractual purchase agreement/price. When a customer orders a new vehicle, it's really an order by the dealer to purchase from Ford, and the dealer is simply reserving it for the buyer that requested it. The buyer can always turn it down after it arrives, and the dealer can change the price they're selling it for. That's been known to happen, especially when there's a long time between the customer "order" and the market changes significant in between.

If nothing significant happens to their cost from Ford or the market, they usually leave the price alone. It can certainly create ill will if they try to raise it after the car arrives. But it's not a contractually locked-in price unless they somehow got the dealer to agree to do that (not sure if that ever happens). A normal vehicle "order" doesn't do that. It's really more of a reservation with the first right to buy it when it arrives.

 

[Kamuelaflyer]

My guess is the China tariffs are more long-term and will cause some relocation of manufacturing (maybe not cars but other products), but I doubt the Mexico/Canada tariffs will.

Maybe. Neither country has much left to give the idiot in the White House nor are they inclined to do so in any event. The pivot to reliable allies and trading partners has already begun. Good for them — the USA is no longer a trustworthy ally nor is it a reliable trading partner.

As for existing inventory, the local Ford dealer has 1 mach-e in stock, 2024 Vapor Blue premium. It has 1 used mach-e in stock, a 2022 plus (technically) the dealer's 2021 FCTP mme. It has 2 Mavericks in stock and 3 more on the way, 3 of the 5 are spoken for. It has no Lightnings in stock and only 3 F150s actually on the lot, the others on their website are mannequins for ordered pickups. They're not unusual around here. Any tariffs are going to hit hard. The new owners have pivoted the sales to try and snag the mainland-buying locals.

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