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Ford Offers Discounts on Cars and Trucks as Auto Tariffs Kick In

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Ford Motor said on Thursday that it was lowering prices on most of its vehicles to the same levels it charges employees in a bid to boost sales as President Trump’s tariffs on imported cars took effect.The tariffs began on Thursday on vehicles imported from Mexico, Canada, Japan, Germany and other countries. The duties — 25 percent of the value of the vehicle in most cases — are expected to increase prices of new cars and trucks and dampen demand.About half the vehicles sold in the United States each year are produced in other countries. Mexico is the top source of those cars and Canada is among the largest. For three decades, the United States, Canada and Mexico have had a free-trade zone, and automakers have moved parts and vehicles freely among the three countries.Ford’s new program, which the company is calling “From America, for America,” could help reduce a large inventory of unsold cars. In February, Ford had more cars in inventory as measured by how many days it would take to sell them all than all but three other brands — Jaguar, Mini and Dodge — according to Cox Automotive, a research firm.Ford’s new discounts apply to all new 2024 and 2025 vehicles, except for specialty versions of the Bronco sport-utility vehicle; the Mustang sports car; Super Duty versions of F-Series pickups; and a few other models.“Consumers will pay what we pay,” Rob Kaffl, Ford’s director of U.S. sales and dealer relations, said in a statement.The automaker also said it was extending another incentive program in which buyers of new electric models get a home charger for free, along with the cost of installation. That offer is now valid until June 30.Ford had more than 568,000 vehicles in inventory at the end of March, up about 8 percent from a year ago. More

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    Trump Auto Tariffs: How Major Car Brands Would Be Affected

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    The tariffs on cars and auto parts that President Trump announced on Wednesday will have far-reaching effects on automakers in the United States and abroad.But there will be important differences based on the circumstances of each company.TeslaThe company run by Mr. Trump’s confidant, Elon Musk, makes the cars it sells in the United States in factories in California and Texas. As a result, it is perhaps the least exposed to tariffs.But the company does buy parts from other countries — about a quarter of the components by value in its cars come from abroad, according to the National Highway Traffic Safety Administration.In addition, Tesla is struggling with falling sales around the world, in part because Mr. Musk’s political activities and statements have turned off moderate and liberal car buyers. Some countries could seek to retaliate against Mr. Trump’s tariffs by targeting Tesla. A few Canadian provinces have already stopped offering incentives for purchases of Tesla’s electric vehicles.General MotorsThe largest U.S. automaker imports many of its best selling and most profitable cars and trucks, especially from Mexico, where it has several large factories that churn out models like the Chevrolet Silverado. Roughly 40 percent of G.M.’s sales in the United States last year were vehicles assembled abroad. This could make the company vulnerable to the tariffs.But unlike some other automakers, G.M. has posted strong profits in recent years and is considered by analysts to be on good financial footing. That could help it weather the tariffs better than other companies, especially if the import taxes are removed or diluted by Mr. Trump.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Canada and Mexico Tariffs Could Hurt Carmakers

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    General Motors and a few other companies make as much as 40 percent of their North American cars and trucks in Canada and Mexico, leaving them vulnerable to tariffs.Almost all automakers are going to feel a pinch from the new tariffs imposed by President Trump on Saturday on goods imported from Canada, Mexico and China.Auto manufacturers ship tens of billions of dollars worth of finished automobiles, engines, transmissions and other components each week across the U.S. borders with Canada and Mexico. Billions of dollars more are imported from parts manufacturers in China.The tariffs, which will take effect at 12:01 a.m. on Tuesday, are widely expected to raise the prices that American consumers pay for new automobiles. And the tariffs come at a time when new cars and trucks are already selling for near record prices.General Motors, the largest U.S. automaker, will probably be most affected.G.M. produces many more vehicles in Mexico than any other manufacturer — over 842,000 in 2024, according to MarkLines, an auto-industry data provider. And some of those vehicles are the most important in the company’s lineup.All of the Chevrolet Equinox and Blazer sport-utility vehicles G.M. sells in the United States come from Mexico. The Chevrolet Silverado pickup truck, a top-selling model, and the similar GMC Sierra pickup generate huge profits for the company. Of the more than one million of those trucks built last year, nearly half were produced in Canadian and Mexican plants, data from MarkLines shows.All told, G.M. plants in Canada and Mexico produced nearly 40 percent of all vehicles the company made last year in North America, the region where it gets most of its revenue and almost all of its profits.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ford Fined by Safety Agency Over Defective Rearview Camera Recalls

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    The regulator faulted the automaker for not recalling cars with defective rearview cameras quickly enough and for providing incomplete and inaccurate information.Ford Motor will pay a fine of up to $165 million for not recalling cars with defective rearview cameras in a timely manner, the federal government’s main auto safety agency said on Thursday.The agency, the National Highway Traffic Safety Administration, said Ford also had failed to provide accurate and complete information about the defect and recall. If Ford is required to pay the full sum, it will be the second-largest fine ever issued by the regulator. The largest fine, a $200 million penalty in 2015, was levied against Takata, a Japanese company that made defective airbag inflaters that resulted in a huge, global recall.The safety agency said a defective rearview camera could increase the risk of a crash.“Timely and accurate recalls are critical to keeping everyone safe on our roads,” the agency’s deputy administrator, Sophie Shulman, said in a statement. “When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”Under a consent decree between the agency and Ford, the automaker is required to pay $65 million. A second sum of $55 million will be deferred and can be partly or completely reversed if Ford makes changes to improve its ability to identify defects and alert the safety agency quickly.Ford also agreed to spend $45 million to improve its ability to analyze data, create a new means of sharing information and documents with the safety agency, and set up a base to test rearview camera components.“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety and compliance at Ford,” the automaker said in a statement. “Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities.”According to a summary of the safety agency’s investigation, the defect was related to a faulty circuit board that caused rearview cameras in certain models to stop working. The agency received 15 complaints about the defect but did not identify any injuries or fatalities caused by it.Ford first identified the defect in 2020 and issued a recall for more than 620,000 vehicles, largely from the 2020 model year, including F-Series pickups, Mustangs and several sport utility vehicles. A year later, the safety agency opened an investigation to determine if Ford had accurately identified and reported all of the vehicles that could have been affected by the camera defect.Ford expanded the recall in 2023 and again this year. Separately, Ford recalled a different set of rearview cameras in 2023 at a cost of $270 million. More

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    G.M.’s Electric Vehicle Sales Surge as Ford Loses Billions

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    Ford is struggling to make money on battery-powered models while General Motors, which started more slowly, says it is getting close to that goal.In the race to be second to Tesla in the U.S. electric vehicle market, Ford Motor leaped to an early lead four years ago over its crosstown rival, General Motors, with the Mustang Mach E, an electric sport utility vehicle with a design and a name that nodded to its classic sports car.But the contest looks much different today.Sales of G.M.’s battery-powered models are starting to surge as the company begins to reap its big investments in standardized batteries and new factories. Ford’s three electric models, including the F-150 Lightning pickup truck and a Transit van, are still selling well but are racking up billions of dollars of losses.The latest view into how Ford’s quick-start strategy has run into trouble came on Monday, when the company reported that its electric vehicle division lost $1.2 billion before interest and taxes from July to September. In the first nine months of the year, it lost $3.7 billion.Ford’s chief financial officer, John Lawler, said it was a “solid quarter,” noting that revenue had risen for the 10th quarter in a row, by 5 percent to $46.2 billion. But the company’s overall profit of $896 million in the third quarter was down 24 percent from a year earlier, largely because of problems with electric vehicles, warranty costs and other factors.“Our strategic advantages are not falling to the bottom line the way they should because of cost,” Mr. Lawler said.Ford made an early entry into the electric vehicle market compared to other established automakers with the Mustang Mach E.David Zalubowski/Associated PressWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ford Pulls Back Its Electric Vehicle Push

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    The automaker said it would invest less in battery-powered cars and scrap a planned electric three-row sport utility vehicle.Ford Motor, which had once hoped to race ahead of other established automakers in electric vehicles, is again slowing the pace of its investments and new battery-powered models.The automaker said on Wednesday that it would delay the introduction of a new large electric pickup truck by about 18 months, to 2027, and scrap a three-row electric sport utility vehicle.The company is also reducing the amount of money it plans to spend on electric vehicles in an effort to stem multibillion-dollar losses on the technology, while adding plans to introduce a new electric delivery van in 2026. A new medium-size electric pickup is expected in 2027 as well, the company said.“The competitive nature of the market is changing globally,” Ford’s chief financial officer, John Lawler, said in a conference call. “That means these vehicles need to be profitable, and if not, we will pivot and adjust and make those tough decisions.”Mr. Lawler said investments in electric vehicles would now account for about 30 percent of the company’s capital budget, down from 40 percent. The company will take a charge of $400 million to account for the cost of manufacturing equipment it purchased for the production of the canceled electric S.U.V., and it may have up to $1.5 billion in additional expenses related to the project.“This is certainly not great news in terms of Ford’s progress on E.V.s,” said Sam Abuelsamid, a principal research analyst at Guidehouse Insights, a research firm. “Clearly they have not yet come to grips with cost-reduced E.V.s and getting more affordable products on the market.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ford Plans More Gas Trucks, Fewer Electric Vehicles

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    Ford, General Motors and other automakers are slowing investments in electric vehicles and doubling down on more profitable gasoline cars and trucks.For much of the last five years, automakers have been spending billions of dollars in a frantic race to develop electric vehicles and build factories to produce them, with expectations that consumers would flock to these new models.But in the past 12 months, the growth rate of electric vehicle sales has slowed sharply as some car buyers have balked at the high prices of electric cars and trucks and the hassles of charging them, especially on long trips.The shift in consumer sentiment is now forcing many automakers to pull back on aggressive investment plans, and pivot, at least partly, back to the internal-combustion engine vehicles that still account for most new car sales and a large share of corporate profits.The latest example came on Thursday when Ford Motor said it would retool a plant in Canada to produce large pickup trucks rather than the electric sport-utility vehicles it had previously planned to make there.Ford’s move comes a day after General Motors said it expected to make 200,000 to 250,000 battery-powered cars and trucks this year, about 50,000 fewer than it had previously forecast.“After the pandemic, there was a huge exuberance around E.V.s, and I think a lot of the manufacturers thought that growth was going to continue,” said Arun Kumar, a partner and managing director in the automotive and industrial practice at AlixPartners, a consulting firm. “But the reality is that’s not the case, and it’s a smart move to make sure you’re not losing market share in internal combustion.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Car Deals Vanished During the Pandemic. They’re Coming Back.

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    Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to lure buyers as the supply of cars grows.For much of the last four years, automakers and their dealers had so few cars to sell — and demand was so strong — that they could command high prices. Those days are over, and hefty discounts are starting a comeback.During the coronavirus pandemic, auto production was slowed first by factory closings and then by a global shortage of computer chips and other parts that lasted for years.With few vehicles in showrooms, automakers and dealers were able to scrap most sales incentives, leaving consumers to pay full price. Some dealers added thousands of dollars to the manufacturer’s suggested retail price, and people started buying and flipping in-demand cars for a profit.But with chip supplies back to healthy levels, auto production has rebounded and dealer inventories are growing. At the same time, higher interest rates have dampened demand for vehicles. As a result, many automakers are scrambling to keep sales rolling.Wes Lutz, owner of Extreme Dodge in Jackson, Mich., said he had several Dodge Challengers and Chargers that were eligible for $11,000 discounts from Stellantis, the manufacturer of Dodge, Chrysler, Jeep and Ram models. The automaker is also offering discounts of up to $3,600 on certain versions of the Dodge Durango sport utility vehicle.“It seems like we may be headed back toward incentives and overproduction,” Mr. Lutz said. “It’s not there yet, but it’s getting close.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Few Chinese Electric Cars Are Sold in U.S., but Industry Fears a Flood

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    Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.The Biden administration’s new tariffs on Chinese electric vehicles won’t have a huge immediate impact on American consumers or the car market because very few such cars are sold in the United States.But the decision reflects deep concern within the American automotive industry, which has grown increasingly worried about China’s ability to churn out cheap electric vehicles. American automakers welcomed the decision by the Biden administration on Tuesday to impose a 100 percent tariff on electric vehicles from China, saying those vehicles would undercut billions of dollars of investment in electric vehicle and battery factories in the United States.“Today’s announcement is a necessary response to combat the Chinese government’s unfair trade practices that endanger the future of our auto industry,” Senator Gary Peters, a Michigan Democrat, said in a statement. “It will help level the playing field, keep our auto industry competitive and support good-paying, union jobs here at home.”On Tuesday, President Biden announced a series of new and increased tariffs on certain Chinese-made goods, including a 25 percent duty on steel and aluminum and 50 percent levies on semiconductors and solar panels. The tariff on electric vehicles made in China was quadrupled from 25 percent. Chinese lithium-ion batteries for electric cars will now face a 25 percent tariff, up from 7.5 percent.The United States imports only a few makes — electric or gasoline — from China. One is the Polestar 2, an electric vehicle made in China by a Swedish automaker in which the Chinese company Zhejiang Geely has a controlling stake. In a statement, Polestar said it was evaluating the impact of Mr. Biden’s announcement.“We believe that free trade is essential to speed up the transition to more sustainable mobility through increased E.V. adoption,” the company said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More