The company’s first quarter revenues fell from a year ago, but exceeded market expectations.
US automaker Ford Motor said on May 5 that it estimated tariff-related policy development would reach $1.5 billion in revenues by 2025, but it does not expect industry-wide prices in the US this year.
Wall Street was hoping that the US automaker would report a first-quarter loss of 2 cents per share against revenues of nearly $36 billion, according to FactSet.
Meanwhile, the Dearborn, Michigan-based auto giant has suspended its full-year financial outlook and said it will work with the Trump administration to better understand how tariff policy will affect the automotive industry and its global manufacturing operations.
Farley also said that Ford supports the administration’s goal of strengthening the US economy by growing American manufacturing and appreciates continued cooperation with policymakers.
Related Stories
“As America’s largest automaker, our involvement with Washington helps U.S. policymakers better understand how proposed policy changes will affect our industry and, of course, our community,” Farley said.
Automobile fares apply to all imported vehicles and certain auto parts unless they meet certain standards under the US-Mexico-Canada Agreement (USMCA). Vehicles or parts that are not substantially produced in the United States are subject to 25% customs duties.
“But it’s clear that in this new environment, the automaker with the largest footprint in the US has a great advantage, and if that applies to Ford, the boy will put us in the pole position and even greater value will be lifted,” Farley said.
Farley and his management said the significant impact of tariffs on the company’s revenue in 2025 would total $2.5 billion, including taxes on imports from China. That cost around $1.5 billion will be offset by recovery measures, including a drop in domestic steel prices from President Trump’s trade policies on imported steel and aluminum.
Ford expects US industry sales to reach around 15.5 million units per year, down 5 million units compared to forecasts before tariffs.
Meanwhile, the company expects industry-wide vehicle prices to rise by 1% in the second half of the year, but it is expected that the average year-round price will remain flat compared to last year.
Farley and other Ford executives also said the company is evaluating short-term resource actions to increase US parts use in Ford vehicles, from the bestselling Taurus and F-150 trucks to signature Mustangs and rapidly growing electric and hybrid vehicles.
The valuation has led the company to suspend exports of cars to China, Farley said, adding that Ford will continue to use the country as a hub to utilize trade with ASEAN countries, Australia, South America and other countries where US trade ties remain favorable.
Farley said the Detroit automaker has assembled more than 300,000 vehicles in the US than its closest competitors. He also said that, apart from the impact of tariffs, the company is still continuing its course to provide a net cost savings of $1 billion in 2025. Capital expenditures are expected to range from $8 billion to $9 billion that year.
Ford shares fell 2.46% or 25 cents in after-hours trading. The company’s shares were previously closed at $10.2 during the May 5 session.
