Potential Price Increase due to tariffs? [ADMIN WARNING: NO POLITICS]

[llinthicum1]

Curious, how will anticipated tariffs impact price of Mach-e and other Ford vehicles manufactured in Mexico?

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[bburk00]

I assume Ford will either move them back to the States or kill them out right if he follows through with his threats. Trump said he is imposing a 200% tariff on anything coming from Mexico.

Trump suggests tariffs higher than 200% on vehicles from Mexico | Reuters

 

[A-A-Ron]

I assume Ford will either move them back to the States

That also comes with a price increase, fyi

 

[Sikkun]

Almost every economist believes prices of almost everything would increase with everything that has been thrown out.

I guess they could all be wrong….but…expect price increases.

 

[zvez]

I assume Ford will either move them back to the States or kill them out right if he follows through with his threats. Trump said he is imposing a 200% tariff on anything coming from Mexico.

Trump suggests tariffs higher than 200% on vehicles from Mexico | Reuters

you gotta wonder tho with the potential tariff, and the massive $$ ford loses on each mach e, if they wouldn't take it as an opportunity to axe the mache and focus on american made cheaper evs.
I think no good scenario exists if tariffs are imposed.

 

[DugthePug Dad]

His 200% tariff was aimed at China’s EVs

 

[Byrus]

you gotta wonder tho with the potential tariff, and the massive $$ ford loses on each mach e, if they wouldn't take it as an opportunity to axe the mache and focus on american made cheaper evs.
I think no good scenario exists if tariffs are imposed.

That's my fear as well.

 

[RickMachE]

I don't understand why this is so hard to understand.

It is FALSE that Ford loses money on each Mach-E they make. Absolutely FALSE. They lose money when amortizing the costs of the EV business, including building vast infrastructure, from an accounting perspective.

Each additional Mach-E coming off the line makes Ford PROFIT.

 

[Sikkun]

I don't understand why this is so hard to understand.

It is FALSE that Ford loses money on each Mach-E they make. Absolutely FALSE. They lose money when amortizing the costs of the EV business, including building vast infrastructure, from an accounting perspective.

Each additional Mach-E coming off the line makes Ford PROFIT.

But it’s more fun to claim they lose millions per vehicle!

 

[JoanS]

His 200% tariff was aimed at China’s EVs

I don't know about that. He threatened John Deere with 200% tariffs if they manufactured in Mexico. Anything is on the table with that guy.

 

[voxel]

Too much lobbyist money against it. Toyota builds the Tacomas there. Blazer EV is built there too.

 

[leehinde]

Don't we have a free trade agreement with Mexico (and Canada). I'd be curious what the 'logistics' (legislative or administrative path) would be to do this..

 

[ChasingCoral]

Curious, how will anticipated tariffs impact price of Mach-e and other Ford vehicles manufactured in Mexico?

If you can provide us with the text of the tariff plan, we can evaluate it. The only impact of the current hot air is less of a cold weather penalty when driving.

 

[Neil4Real]

I don't understand why this is so hard to understand.

It is FALSE that Ford loses money on each Mach-E they make. Absolutely FALSE. They lose money when amortizing the costs of the EV business, including building vast infrastructure, from an accounting perspective.

Each additional Mach-E coming off the line makes Ford PROFIT.

I don't think it is making a profit, it is breaking even. A reputable source posted earlier this year:

"The Mach-e sells for a price which covers its production cost. Same for Lightning.

What is not covered is the huge expense of an Engineering team to develop a bunch of new EV vehicles, plus the cost of building what is essentially a new city in Tennessee/Kentucky to build these new products and batteries. Assume "production cost = selling price" for every current BEV sold, then multiply the Ford BEV sales volume by the rumored "loss" per BEV. That should give you an estimate of the investment Ford is making in BEVs right now. Hint: If your math is correct, then annually you should get a dollar amount that starts with a B... "

 

[rreddy3]

Don't we have a free trade agreement with Mexico (and Canada). I'd be curious what the 'logistics' (legislative or administrative path) would be to do this..

The agreement was signed in 2018 during the administration of 45. It’s abbreviated the USMCA, not to be confused with the US Marine Corps ?, and went into full effect in 2020.

It is my understanding the existence of that agreement is precisely why Chinese EV manufacturers are eyeing and setting up shop in our neighbor Mexico as an assembly and production site. While they are selling EVs in Mexico, I don’t know if any Mexican built Chinese EVs are being sold in the US at this time.

ere are a couple of quotes from an article that appeared in Fortune last summer.

“ Especially worrisome: The 2020 U.S.-Mexico-Canada Agreement would potentially let Chinese cars assembled in Mexico enter the United States duty-free or at a nominal 2.5% tariff rate. Either way, China could sell its EVs well below typical U.S. prices.“

“ To defuse the threat, the U.S. has options. Customs officials could rule that Chinese EVs don’t qualify for the low-duty or duty-free benefits of being made in Mexico. U.S. policymakers could also pressure Mexico to keep Chinese vehicles out of that country. Or they could bar Chinese EVs from the U.S. on the grounds that they would threaten America’s national security.“

We shall see what happens, or doesn’t.

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