Ford Motor Co. said on Monday it expects its profit to be $1.5 billion (€1.39 billion) excluding interest and taxes as a result of this year's tariffs. The company also withdrew its all-year financial guide due to the uncertainty created by the Trump administration's burgeoning trade policy and suspended publishing a new one.
Automobile manufacturer, President Trump’ applied to vehicles ’ is less affected by tariffs than other car manufacturers.
Last week, General Motors said it was preparing for a potential impact of car tariffs as high as $5 billion (€4.4 billion) at 2025’. Ford and Tesla’ are expected to see a smaller impact from the tariffs compared to GM and other automakers as they assemble most of their cars in the USA’. Still, the impact they'll see won't be insignificant.
Ford initially estimated that its 2025 pre-interest and pre-tax earnings would be in the range of $7 billion to $8.5 billion (€6.2 billion to 7.5 billion), but on Monday the company said tariff-related risks made it difficult to update its full-year guideline at this time, given the “potential outcome range.
Ford CEO Jim Farley has been vocal about the advantage higher domestic production gives his company, and he did the same on Monday, acknowledging that the industry's tax impact is still in the early stages.
In his earnings interview with analysts, Farley said it is too early to measure relevant market dynamics, including potential supply chain disruptions across the “Sector. Car manufacturers with the largest footprint in “ will have a great advantage, and this also applies to Ford. This puts us in a pole position. - ”
Ford’'s earnings statements dominated the potential impact of tariffs; One executive pointed out how a small problem in a few parts can have a dramatic impact.
Operations Director Kumar Galhotra, “ChinaHow rare earth materials from ’, for example, are imported, has become quite complex over the past few weeks, not just for us, but for the entire industry, ” said. “Only a few parts will be enough to potentially cause some interruptions in our production.”
The first quarter (1. (Quarter of results)
The announcement comes after the automaker announced its first quarterly results, along with a sharp drop in profits. Net revenue fell by about two-thirds in the first quarter compared to the previous year, to 1.33 billion $471 million from ’ (€1.17 billion) $’a (€417 million) declined.
In the quarterly report, “ reported that as a result of the reduction in wholesale sales resulting from planned shutdowns at certain factories in relation to new product launches and inventory rebalancing measures, ” %It fell five times to $40.7 billion (€35.9 billion).
The results exceeded the expectations of analysts who participated in the FactSet survey, who estimated revenue to be about $38 billion (33.5 billion euros).
USAView of the car manufacturing sector in ’
President Donald Trump said one of the goals of his trade policy was to move more product manufacturing, such as cars, back to the U.S. ’. Last week, Trump signed executive orders to loosen some of the 25 percent ’ tariffs on cars and auto parts, which he said would give automakers more time to change production operations.
Automakers and independent analyses have shown that tariffs can increase prices, reduce sales, and make U.S. production less competitive around the world. However, Ford does not expect significant price increases. According to CNN’, the automaker expects U.S. auto prices to rise in the second half of this year due to tariffs on both imported cars and auto parts. %From 1 to %He expects it to increase by 1.5%.
Ford has promised an update to its financial guidance while announcing its results for the second quarter of the year.
