Read more at source.
Read more at source.
Ford is also grappling with potential cost increases associated with tariffs on imports from Mexico and Canada, as well as changes to EV incentives. The company has not factored in the potential impact of President Donald Trump's threat to impose a 25% tariff on these imports, nor the likely elimination of Biden-era EV incentives such as tax credits and manufacturing credits. Ford CEO Jim Farley has warned that prolonged tariffs could have a significant impact on the industry, potentially wiping out billions in profits and affecting U.S. jobs and the industry's value system.
Despite the challenges, Ford remains committed to its electric vehicle and software business. The company has reported $1.4 billion in cost improvements from its Model e division, indicating a focus on efficiency and cost reduction. However, the predicted losses underscore the difficulties Ford faces in transitioning from traditional gas vehicles to electric vehicles, a shift that is crucial for the company's future in a rapidly changing automotive industry.
Ford CEO Jim Farley said a few weeks of tariffs would be manageable, but protracted tariffs would have a huge impact on our industry, with billions of dollars of industry profits wiped out and adverse effect on the U.S. jobs, as well as the entire value system in our industry.
