Jim Farley Says Ford Will Delay Price Hike To See How Rivals React To Tariffs
Ford Motor Co. (NYSE:F) has announced it will delay the planned hike in prices for its vehicles until it sees how the competitors respond to Donald Trump's auto tariffs.
What Happened: Ford CEO Jim Farley shared the update from the company's manufacturing facility in Louisville, Kentucky, Bloomberg reported on Wednesday.
"You know half the industry in the US is imported and they have $5,000 to $10,000. Will they just absorb those? Will they pass them on to customers? That will be a big decision because a pricing decision is a competitive decision." Farley said in the report. He also said that the company will provide more details in its upcoming earnings call.
However, the CEO also acknowledged that more work needed to be done with the Trump administration for the vehicles the company exports out of the U.S. “We have a lot more work to do on parts and on exports,” Farley said.
Farley also announced that the company will extend its employee pricing scheme for all customers through the summer till July, in an interview with Fox Business from the Kentucky plant.
Why It Matters: The company had earlier announced its ‘From America, For America’ program, which offered Ford vehicles to all customers in the U.S. at a discounted price, usually reserved for the company's employees, in light of the government's auto tariffs.
However, the Trump administration recently announced it would provide exemptions to automakers by alleviating some duties levied on imports, which could prove to be a boost for the auto industry in the U.S.
Elsewhere, the company has reportedly halted shipments of some of its high-end vehicles into China, in light of the rising U.S.-China trade tensions. These include F-150 Raptors, Mustang muscle cars, and Bronco SUVs, among others.
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