Ford Motors reported that its first quarter US vehicle sales were down 1.3% compared with the same period in the previous year. The industry is bracing for the new auto tariffs, which are set to go into effect next week.
Sales of this model have plummeted 94%, as dealers try to clear remaining stock.
Ford’s stock price was around 0.9% lower in early trading hours on Tuesday.
|
Sales |
Q1 2025 |
Q1 2024 |
Change |
|---|---|---|---|
| Total Electric Vehicles | 73,623 | 58,644 | 25.5 |
| Electric Vehicles | 22,550 | 20,223 | 11.5 |
| Hybrid vehicles | 51,073 | 38,421 | 32.9 |
| Internal Combustion | 427,668 | 449,439 | -4.8 |
| Total Number of Vehicles | 501,291 | 508,083 | -1.3 |
In a press release, the company said:
Ford’s total sales decreased by 1% over the previous year. This was primarily due to the timing of daily fleet sales and the volume lost from discontinuing the Ford Edge and Transit Connect.
Ford retail sales, excluding fleet, rose 5% over the past year, mainly due to a surge of 19% in March.
Total sales increased 10% in March based on the strong retail sales of March.
Consumers rushed into dealerships in order to purchase vehicles before expected tariff-related price increases.
The industry braces itself for the Trump tariffs
The auto industry is in a state of uncertainty due to President Donald Trump’s recent trade measures. These include 25% tariffs starting on Thursday for imported vehicles.
Automakers could also be affected by the “reciprocal tariffs” that are expected to be announced Wednesday.
JD Power forecasted strong sales across the industry for March. A 13% increase year-overyear in retail sales was attributed by buyers to locking in their prices ahead of potential tariff increases.
Analysts warn that while the auto industry is likely to grow by around 1% year over year in the first three months, rising prices as well as reduced incentives offered by automakers and dealerships could dampen demand.
US automakers pursue exemptions
Bloomberg reports that US automakers have intensified efforts to obtain tariff exemptions for imported parts of cars ahead of the new trade levies due to come into effect next week.
Ford, General Motors and Stellantis reportedly met with White House officials, the Commerce Department and US Trade Representative to discuss the issue of duties being imposed on components that are low cost.
Tariffs that include a tax of 25% on all fully assembled cars starting April 3 are intended to promote domestic production.
Automakers, however, warn that taxing parts individually will increase production costs, and eventually raise the price of cars, which is already close to $50,000 on average.
In order to avoid the worst impact of the new tariffs, car manufacturers have stocked up vehicles while customers have rushed into making purchases.
The companies are pushing to exempt parts that cost less but require more labor, such as wire sheaths. These parts are often made in countries with low wages, like Mexico.
These tariffs, they argue, will not boost production in the country but instead will burden consumers and reduce demand.
As new information becomes available, this post Ford Sales Slip in Q1, Stocks Subdued Ahead of Tariff Rollout could be updated.
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