Update: Auto tariffs suspended 1-month

[Huchipapa]

All this winning....

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[oysterville]

no question prices will rise, but it's impossible to guess what percent. sales will fall off a cliff if it were to be the full 25%, which is kind of the point of a tariff. to reduce economic activity and create a reason for a trade agreement.

And yet people in here do the seemingly impossible and guess anyway.

 

[Edge Haley]

I am not agreeing or disagreeing with the premise, but...

A nebulous threat of possible, maybe future tariffs doesn't inspire action. 25% tariffs starting today does.

I can guarantee there are Ford executives and manufacturing engineers visiting shuttered US factories today and devising a plan to move MAV/BS production back to the US. If ,or when, it happens will depend on the costs and time to get the facilities and workforce ready vs the cost of stopping production completely vs absorbing the 25% somehow.

I foresee Ford "promising" to assemble the next gen MAV in the US and the MAV tariff being delayed until then. DJT will be out of office by then and they can renegotiate with the next guy.

That's probably doubtful. Ford and Mazda co-owned the Mexico plant and Ford bought out Mazda' interest and spend 36 months rebuilding the plant and assembly line...at $1.6 billion dollars. That's hard to walk away from. The cost to stop production for 1, 2, 3 year to relocate is pretty hard to do.

It really hard for US car manufacturers to compete with labor at $26 dollars and hour and $10-15 per hour in benefits, pensions, etc...which Mexico does not have.

 

[Blue_Max]

But for the life of me I can't tell which way. There's the obvious, but then there's how I write that makes me wonder.

If the rule is "No politics," which way makes no difference.

 

[Mark1]

That's probably doubtful. Ford and Mazda co owned the Mexico plant and Ford bought out Mazda' interest and spend 36 months rebuilding the plant and assembly line...at $1.6 billion dollars. That's hard to walk away from. The cost to stop production for 1, 2, 3 year to relocate is pretty hard to do.

The not so funny but stupid thing is , the minute American auto makers move out of Mexico BYD WILL MOVE IN. Yes once China moves in were done. Look up the BYD SHARK truck being sold in Mexico and Australia. It's better than a Ford. Let's face it Ford and Gm are middle of the pack in quality. Ford is the leader in Recalls the last 2 years. GM is getting help from KIA on its SUV designs.

The problem isn't made in America, the problem is made as cheap as possible for the most profit. Good old Capitalism is killing us / selling us from ourselves.

 

[Prickly Pear]

All this winning....

And like someone said "We're gonna win so much, you may even get tired of winning. And you'll say, 'Please, please. It's too much winning. We can't take it anymore...

 

[NextTruck]

3.18% net profit margin is NOT a lot of money, it is terrible.

a small business that low would be on the verge of failure. granted, massive manufacturing companies are different, but it really should've been considerably higher like slingshot assumed/guessed.

Ford cannot absorb a 25% tariff on the Maverick, but I expect their lobbying efforts to ultimately be successful and either a lesser tariff or none at all ultimately applied.

Fortunately they are not small business (aka the "BIG 3"). You can't equate margins for billion dollar companies and a small business. And like I pointed out, if you have a division that is a huge looser year after year, time to dissolve the division and stop whining about a 3.18% ATP

 

[James K]

Had a Hybrid AWD XLT on order at a firm price quote and deposit. Dealer emailed me this AM and price will go up $3,800 so I asked for my deposit back...I was not desperate for the XLT. If I do not get my deposit back quickly, I will be PO'ed.

Something smells fishy. Did you read your contract? (force majeure or other stipulations) Odd that the dealer knows when it has not been announced.

 

[James K]

If a car stealership wants a deposit, WALK. When I purchased my 2023, the first dealer, Molstesd in Charles City IA wanted $500. I walked. The next day, I went to Roling Ford in Shell Rock IA. Exact same truck, ordered with NO markup and NO deposit.
Stealership seem to think THEY are the only game in town. WRONG! YOU have the money. YOU have them by the "short and curlies" as Scotty Kilmer says.
By the way, that signed order is a legal document. SUE THEM.

Read the document. Contracts are seldom so simple. I'm not sure if dealer would win, but they certainly can argue force majeure.

 

[MakinDoForNow]

And. Yet it see

And yet people in here do the seemingly impossible and guess anyway.

Yet it seems impossible to guess either way

 

[oysterville]

And. Yet it see

Yet it seems impossible to guess either way

Guess accurately at least.

 

[MakinDoForNow]

Also Trump has stated that anything covered by the USMCA WILL NOT be subject to the new Tarrifs!!!!!

 

[oysterville]

Next on "An Evening at the Improv"...

 

[Mark1]

I am surprised you have not been banned. The Real truth to the new 2025 Maverick is that more money is required to give money back to the upper level segment of pick ups. Without it and cuts by Dodge pick ups the negativity will rise above the present trillions. Increases will be coming to us soon enough.

 

[zen_]

The not so funny but stupid thing is , the minute American auto makers move out of Mexico BYD WILL MOVE IN. Yes once China moves in were done. Look up the BYD SHARK truck being sold in Mexico and Australia. It's better than a Ford. Let's face it Ford and Gm are middle of the pack in quality. Ford is the leader in Recalls the last 2 years. GM is getting help from KIA on its SUV designs.

The problem isn't made in America, the problem is made as cheap as possible for the most profit. Good old Capitalism is killing us / selling us from ourselves.

Chinese EVs are already taking over LATAM. When I was in Merida 3 months ago, the writing on the wall was already obvious.

At a high level I support the concept of re-shoring manufacturing, most Americans do, but it's definitely a feel good concept until you get into the details of the actual economics and reality that America can't insulate from the global economy with tariffs. We will just end up paying more for materially worse vehicles if it's not carefully balanced, not to mention our products will be totally uncompetitive and unwanted abroad.

Guess it will all work out when Tesla is the only choice left.

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