Ford Announces Discounts Amid Tariff-Induced Sales Surge
By Nora Eckert and Kalea Hall
DETROIT (Reuters) -Ford Motor announced discounts across multiple models starting Thursday, leaning on its healthy inventory to offer customers thousands of dollars off as competitors hike prices to absorb tariff costs.
Ford will offer employee pricing - a discounted rate available to its workers - to all customers, the company confirmed, after Reuters reported the news Wednesday. The program is called the "From America for America" plan, and is available to U.S. shoppers.
The Dearborn, Michigan-based automaker builds 80% of its U.S.-sold vehicles domestically, giving it a greater buffer from U.S. President Donald Trump's tariffs than some competitors. However, it still faces the prospect of steep levies on imported vehicle parts.
The incentives apply to much of its lineup, including vehicles like the Mustang Mach-E and Maverick that are built in Mexico. Some vehicles, including its lucrative Super Duty trucks, are exempt. The promotion runs until June 2, Ford said.
Trump last week announced 25% duties on all auto imports, which sent shockwaves through the global industry.
The United States is the world's largest importer of cars, and nearly half of all cars sold in the country last year were imported, according to research firm GlobalData.
On Wednesday, Trump broadened the tariffs to a 10% baseline on all imports, with higher rates for some countries. Ford shares fell following the tariff announcement, as did those of General Motors and Tesla.
While under Trump's order, goods from Mexico and Canada that comply with the USMCA trade agreement between the three countries will largely remain exempt from tariffs, auto exports and steel and aluminum fall under separate tariff policies
Barclays analysts said Ford was best positioned to weather the tariffs given its high percentage of U.S. production, while rivals General Motors and Chrysler-parent Stellantis produce around half of their U.S.-sold vehicles domestically.
Buyers have rushed to dealer lots in recent weeks to snap up cars before prices increase, boosting auto sales in March.
Ford's dealer lots are more stocked than the industry average, according to Cox automotive. Ford had more than four months of inventory in February, above the industry average of nearly three months.
Cox also found that Ford's incentive deals were slightly lower than the broader industry in February, with Ford's deals amounting to 6.7% of average vehicle transaction price, while the industry average was 7.1%, or $3,392.
(Reporting by Nora Eckert; editing by Diane Craft, Leslie Adler and Chizu Nomiyama)
