Ford Motor hikes in three of its models produced in Mexico from May 2, becoming one of the first major car manufacturers to adjust the prices of stickers after the President Donald Trump Prices.
Prices on the Mustang Mach-E electric SUV, Maverick collection and Bronco Sport will increase up to US $ 2,000 on certain models, according to a notice sent to the dealers examined by Reuters.
Ford earlier this week said that US President Donald Trump’s trade war would add around $ 2.5 billion in costs for 2025, but it plans to reduce this exposure by around 1 billion dollars. The general rival general Motors GM.N said that last week’s prices should cost it between $ 4 billion and 5 billion US dollars following the taxation of important samples on foreign automobile imports, but it expected to compensate for this at least 30%.
A spokesperson for Ford said the price increases will affect vehicles built after May 2, which would arrive at dealerships at the end of June. The spokesman said the price increases reflect “usual” prices in the middle of the year, “combined at certain prices we face. We have not transmitted the total cost of prices for our customers. ”
Ford’s actions have dropped less than one percent in morning trading. The automaker still organizes a reduction program throughout the weekend of July 4 on several of its models, said the spokesperson.
Trump’s prices have triggered weeks of uncertainty in the automotive sector, while the main car manufacturers in the United States and Europe have drawn forecasts, moved production and made companies to inactive factories.
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After weeks of decline in the automotive industry, Trump has softened his prices on imports of foreign automotive parts to give the carneurs of credits for what is produced in the United States and to avoid double prices on the raw materials used in automotive production. However, the White House has not canceled a price of 25% on the eight million vehicles that the United States imports each year.
Analysts said American automotive sales could drop by more than a million vehicles a year if the prices were to remain in place.
Ford is in better position to mix the prices than some of its competitors because of its solid American manufacturing base. Dearborn car manufacturer, Michigan, brings together 79% of its American vehicles at the national level, compared to 53% GM, Barclays analysts said in a note.
However, Ford imports one of its most affordable and popular vehicles, the Maverick, Mexico. Most of the main American car manufacturers face significant price increases on their cheaper products in the country.
Ford and GM are also faced with important charges on imports from China and South Korea, respectively. GM estimated that the costs of its Korean imports totaled around $ 2 billion, while Ford refused to specify expenses concerning the import of vehicles from China.
–Report by Nora Eckert; Edition by Andrew Heavens, Kirsten Donovan