Locator: 48727FORD.
Blame Canadian aluminum tariffs: In 6:40 a.m. CT interview on CNBC with SecTreasury: Ford's losses due to (Canadian) aluminum tariffs, and unlike other pick-up manufacturers, Ford is using aluminum to make their F-series pick-up trucks, according to Sec Bessent. Needs to be fact-checked but that's his take.
Of course, Ford is in talk with the Trump administration. "Everyone" is in talks with the Trump administration on tariffs.
Ford Motor paid out more than $800 million in tariffs last quarter, despite manufacturing most of its vehicles in the U.S.
The tariff bill came from parts imported from outside of the country as well as from fees on steel and aluminum. The hit helped wipe out the company’s net profit, leading to its first quarterly loss since 2023. [NOT UNIQUE TO FORD.]
Executives said they are pressing the Trump administration to lower levies on parts and materials. “They’ve made it clear that Ford as the most American automaker should not be disadvantaged,” finance chief Sherry House said. “We are optimistic.”
The company said tariff-related costs will cut about $2 billion from its annual earnings, more than the $1.5 billion it predicted three months ago.
The company reported a net loss of $29 million, compared with $1.8 billion in net income a year ago. Revenue rose to $50.2 billion, from $47.8 billion a year ago. Ford shares are down 3.4% in after-hours trade.
Tariffs are slicing into profits for automakers around the globe as companies pay higher duties on cars and parts coming from outside of the U.S. The U.S. recently struck tariff-lowering trade deals with Japan, the European Union and the U.K. Such deals advantage rivals such as Toyota and Nissan, Ford said.
Comment: I think Ford is blaming way too much on the tariffs and way too little on their self-imposed problems with decision to go "all EV," although the company has stepped back from that policy for now.
A great prompt:
What's a bigger problem for Ford going forward? Tariffs or losses in the EV division?
Ask ChatGPT and see how ChatGPT answers that question. ChatGPT provided me a long, in-depth answer with lots of data. Here's the bottom line:
I knew it was bad, but look at that bottom line:
Ford’s near‑term survival hinges on managing tariffs, but its future competitiveness depends on turning EV investments into profit.
Near-term survival? Say what? It would be interesting to see the source of that comment.
