Farley on possibility of Maverick production moving to U.S. - when financial numbers are compelling & can retain affordability

[22_Mich_Mav]

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[heady]

Makes sense, I think it's been too strong of a seller to lose their market advantage in the segment simply due to taxes! Once I stumbled upon the Maverick I was really blown away by the value, it would be a shame to lose that, although I'm sure there's a big challenge to keeping the price down to reasonable levels with a US factory relocation, too. Same for the Broncos, I doubt they want to see those sales kneecapped, either!

 

[710-oil-614]

It won't ever happen this is just Farley playing the game.

 

[MavStangVa]

ROI, Return On Investment is key. If the cost to retrofit a plant is 25 million and they can't recover that investment in 3 to 5 years they won't do it. Farley said “when the financial numbers look compelling and we believe the policy is permanent. We make these decisions on a 20-year basis and we’ll have to make that judgement call.” So they are looking forward as manufacturers do 20 years out. That is why CEOs and Corp Presidents get paid big dollars. They plan for the far future not the next year like the line worker. The only way it happens is if Mexico raises wage requirements or the punitive tariffs stay in place. Otherwise it would increase the price of the Maverick beyond what the market will bare.

 

[heady]

Quite possible you're right, the big thing this earnings season is no one knows anything, most companies have, or will, cancel forward guidance; uncertainty is the buzzword of the era. Right now the "best" or safest moves seem to be paralysis. They're throwing out stuff "like this could happen" in the news and PR spinzones - but where the rubber meets the road in the shareholder meetings, it's all engines full stop until they see what the weather is going to be down the road

If the taxes stay permanent, the market will bear whatever price the price is, it will effectively kill much of the competitive market dynamic, so there'll be little reason to keep prices in check anyway, honestly. Vehicle sales are moving upmarket already at a shocking pace, the Maverick has been one diamond in the rough when it comes to affordable stuff, but there's no guarantees I guess.

 

[pigsareus]

ROI, Return On Investment is key. If the cost to retrofit a plant is 25 million and they can't recover that investment in 3 to 5 years they won't do it. Farley said “when the financial numbers look compelling and we believe the policy is permanent. We make these decisions on a 20-year basis and we’ll have to make that judgement call.” So they are looking forward as manufacturers do 20 years out. That is why CEOs and Corp Presidents get paid big dollars. They plan for the far future not the next year like the line worker. The only way it happens is if Mexico raises wage requirements or the punitive tariffs stay in place. Otherwise it would increase the price of the Maverick beyond what the market will bare.

well they certainly didn't earn 'their big dollars' on their $5B losses a year EV venture - that's actually where he got religion and his new philosophy - if a new vehicle can't be profitable within 12 months they won't build it.

 

[heady]

Oh, that's a big deal too, the US manufacturers have really stagnated and seem unable to adapt quickly anymore, old and slooooow. "New energy vehicles" account for >76% of the world's biggest auto market now, while the US has barely broken 20%. Risk averse to the extreme, with predictable consequences - investment seeks the greener pasture. Took Ford almost 20 years to make a truck I wanted with technology that was available back then

 

[commadorebob]

Labor is always the most expensive part of building anything. The cost of goods on a lot of products is always a lot lower than the final cost, but someone has to build it. That is what costs money. Plus you have the non-productive money drains (management, etc) that you have to also account for.

Improved robots is what will ultimately move these factories back to the US for good. Only thing cheaper than foreign labor is no labor, which is why Tesla is pushing their robotics division like they are. Robots are cheaper than employees and don't take vacation. Once robotics takes over the primary manufacturing jobs, the economy will then shift from manufacturing to support as robots do break.

 

[Dave O]

I see the value of my 2025 Maverick Lariat AWD Hybrid trending upward

 

[2lbgill]

ROI, Return On Investment is key. If the cost to retrofit a plant is 25 million and they can't recover that investment in 3 to 5 years they won't do it. Farley said “when the financial numbers look compelling and we believe the policy is permanent. We make these decisions on a 20-year basis and we’ll have to make that judgement call.” So they are looking forward as manufacturers do 20 years out. That is why CEOs and Corp Presidents get paid big dollars. They plan for the far future not the next year like the line worker. The only way it happens is if Mexico raises wage requirements or the punitive tariffs stay in place. Otherwise it would increase the price of the Maverick beyond what the market will bare.

CEO's make final decisions it's the grunts that do the imagination,data and the real decisions.

 

[HenryFord]

Jim is trying to buy time. Either to wait out the tariff storm, or to ramp automated production capacity. Long term automation is probably the path out, but that capex is killer. Farley is all too aware that Chinese brands are knocking on the door.

 

[RSM]

It won't ever happen this is just Farley playing the game.

100% agree, it would take 1-2 to get a plant ready for assembly. The cost would not be worth it

 

[HenryFord]

100% agree, it would take 1-2 to get a plant ready for assembly. The cost would not be worth it

Dust needs to settle before they can make a call... and given the 180 turns nothing is even remotely set in stone. He is right, if they pushed everything into the US today the entry level price would be 50k. That would be suicide.

 

[MavStangVa]

CEO's make final decisions it's the grunts that do the imagination,data and the real decisions.

Spoken like a true grunt. I always suggest to anyone who denigrates a CEO's job to get it and see if it is as easy as it looks. Most people have NO idea what a CEO of a corporation has to do.

 

[MetalThunder]

IMO - Can't see them moving the already existing assembly lines/tooling at this point - But when The GEN2 Maverick [ Ford Maverick Redesign Will Likely Arrive In 2028: Report ] comes along definitely a move to the USA becomes a reality worth considering. Gives suppliers time to move north of their border too


Cheers

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