Ford and Mattel pulled their annual guidance today, with Ford saying it anticipates a $1.5 billion loss due to tariffs and Mattel planning price hikes. All caused by the dumbest economic plan in history. Yay tariffs! Trump’s war on America is just starting to hit new levels with his unprecedented sales taxes (aka tariffs).
To be fair, Ford shifted manufacturing to Mexico to cut labor costs, they have not cut the prices of their vehicles to the consumer, the difference in labor cost and lost jobs has been to increase profits and they have spent BILLIONS to build in Mexico, this is their own fault and doing and if they get their fingers burnt then that is the risk/reward of offshoring production as they have.
I would never buy a vehicle made in Mexico from Ford or Stellantis or Honda or Toyota etc.
To be fair, you’re playing semantics over a meaningless point. Yahoo Finance has one headline saying they pulled their guidance, and another says they suspended it.
Meanwhile, Reuters has a headline saying they pulled their guidance.
You know what everyone says? Ford anticipates a $1.5 billion loss in 2025 due to the Trump tariffs.
This just in:
General Motors said it is bracing for a potential impact from auto tariffs as high as $5 billion in 2025.
Massive layoffs headed for Detroit:
Spencer Hakimian, founder of Tolou Capital Management, suggested that layoffs could hit Detroit as a result of Ford’s announcement. Earlier this year, The New York Times reported that Ford CEO Jim Farley warned that there could be possible layoffs as a result of Trump’s policies.
“Get ready for pink slips in Detroit. All for nothing,” Hakimian wrote on social media platform X on Monday.
Been a staunch union guy my whole entire life, but these auto workers backing trump are gonna now face what that means standing with him. Guess they forgot biden was on the picket line while trump was at a non union event.
Only way cars will ever be cheap made in America is if auto workers start working for 10-15 an hour with no benefits.
Ford’s prices are competitive and frankly pretty low. The tariffs are crushing their bottom line (importing raw materials like steel, and importing premade parts like brake pads). It’s not the labor costs, it’s the tariffs.
Good post.
The problem is everybody else does it and if Ford doesn't they fall behind. Dodge large trucks made in Mexico too.
Also; Despite its moves to pull back on its EV ambitions, Ford expects its Model e unit losses to reach up to $5.5 billion as it continues to weigh down the company's bottom line.
Interesting article from 2017; https://www.cargroup.org/the-move-to-assemble-vehicles-in-mexico-is-about-more-than-low-wages/
Per American manufacture vehicle built in Mexico;
-Labor costs in Mexico represent a $600 savings.
-Parts cost in Mexico represent a $1500 savings.
-Transporting the vehicle to market a -$900 loss.
-Free trade agreement tariff savings $0.00.
Per Europeon manufacture vehicle built in Mexico;
-Labor costs in Mexico represent a $600 savings.
-Parts cost in Mexico represent a $1500 savings.
-Transporting the vehicle to market a -$300 loss.
-Free trade agreement tariff savings $2500.00.
I have had two Dodge trucks, a 1994 one ton dually diesel and a 2000 1/2 ton. Long before Stellantis. Liked them both.
1996 was the 1st year of the style change from the old dodges. It also was the year the new transmissions failed often. I bought my truck used after it had the tranny replaced.
Ford had problems with their 6.0 diesels. Excessive pressure had the head bolts deforming and blown head gaskets. Solution was a heavier strength head bolt installation. My 2009 Chevy 1/2 ton would alarm "Engine Hot, A/C Turned Off" and the radiator cooling fans would run and your temp guage would shutdown. If you disconnected the battery for 10 seconds the alarm went away and a/c worked, temp guage worked, until it decided to do it again. Solution; just change the thermostat and make sure it's AC Delco. The trucks computer is so touchy if the thermostat is stuck open just a little bit the truck freaks out and says it's too hot when it's OK. What stupid programming!
All the manufactures have their issues.
Hey Midnight, nice snide remark.
typical that you would leave out the fact that the motors were gonna be inspected and if they passed the inspection told to use that oil and were given an extended warranty coverage. But like with all your posts ever, you leave out the true facts, cause it doesnt fit your maga cult story line. I could ask a 3rd grader to fact check your posts, thats how easy they are.
Now you can go back to being mad at the world
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