Ford Announces Increase in Imported Car Prices from Mexico; Anticipates Moderate US Price Upsurge
Ford Bumps Up Prices on Some US-Imported Models
Here's a lowdown on the deal: Ford has decided to bump up the sticker price on three of its US-imported models - the Ford Mustang Mach-E, the Maverick midsize pickup, and the Bronco Sport, an entry-level SUV. The increase ranges from $600 to a whopping $2,000, depending on the features, as revealed in a dealership memo. The changes were first reported by Reuters, and Ford has since confirmed the news.
Why the change? The price hike is attributed to tariffs, primarily the 25% tariff on imported cars,originally introduced under former President Donald Trump's trade policies. Moreover, new tariffs have been imposed on imported car parts, escalating production costs[1][2][3].
The timing: The price increase won't apply to vehicles currently on the lot but will take effect for those built after May 2. These vehicles are expected to reach dealerships in late June. Ford has been upfront about the reason, saying, "This is our usual mid-year pricing actions combined with some tariffs we are facing"[4].
Full Cost Not Passed to Consumers: Despite the tariff-induced price rise, Ford maintains that it's not shifting the full cost to consumers. Their goal remains to do what's right for both customers and the business[4].
Promotions Still On: Ford isn't entirely offloading the tariff burden onto customers. In a move to help buyers, Ford is extending its "employee pricing" promotions through July 4[4]. With this offer, the company aims to help customers cope with the price increasersulting from tariffs, though the extent of the reduction may vary[5].
Industry Trends: It's worth noting that while tariffs have pushed up production costs for many automakers, the industry as a whole has been relatively slow to announce price increases related to import taxes[6].
Financial Implications: The trade policies and tariffs are forecast to cost Ford about $1.5 billion through the rest of this year[2]. In response, Ford has withdrawn its full-year financial guidance due to uncertainty, reflecting the unstability that these policies have brought[2].
[1] Tariffs on imported cars[2] Ford's response and financial impact[3] Increased tariffs on imported parts[4] CNN report[5] Retail price negotiation between buyers and dealers[6] Slowness of automakers to announce price increases in the US due to tariffs
- The MSRP of Ford's US-imported models, including the Ford Mustang Mach-E, the Maverick midsize pickup, and the Bronco Sport, has been increased due to tariffs, as revealed in a dealership memo.
- The automotive industry, in general, has been relatively slow to announce price increases related to import taxes, but Ford is expected to face a financial impact of about $1.5 billion due to tariffs this year.
- Despite the tariff-induced price rise, Ford is striving to do what's right for both customers and the business, and they are not shifting the full cost to consumers.
- To help buyers cope with the price increase resulting from tariffs, Ford is extending its "employee pricing" promotions through July 4, aiming to provide some relief to customers.
