US Automakers Face Tariff Threats from Mexico and Canada
US auto giants Ford (F) and General Motors (GM) confront potential tariffs from Mexico and Canada on February 1st. President Trump has reiterated plans to impose a 25% levy on imported vehicles from these countries, where automakers assemble many products for US sales.
Ford Prepares for Tariff Impacts
Ford CEO Jim Farley believes the tariff issue will extend beyond February. The company has a contingency plan in place. "We anticipate this unfolding over the coming months," Farley stated.
Farley asserts that Ford is well-positioned due to its substantial US manufacturing footprint. "Ford's US manufacturing scale is unmatched," he said. "We're encouraged by the administration's positive stance on the auto industry and its impact on the economy."
Impact on EV Transition and Tax Credits
Farley emphasizes the need to address policies affecting the industry, including CO2 regulations, EV tax credits, and tariffs. The Trump administration's rollback of CO2 emission targets could impact EV transitions, while the removal of EV tax credits could hinder Ford's sales.
Despite the uncertainties, Ford remains committed to EVs. Farley anticipates the release of second-generation EVs that will be profitable from launch. The automaker is targeting smaller and midsize EVs to meet consumer needs.
EV Development Progress
Farley highlights the company's significant investment in EV development. "We're deeply involved," he said. "We have a remarkable platform developed in California. We're now industrializing... We're retooling our factory, and Ford's new lineup of commercial and affordable EVs will be available in a few years."