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Home » Car manufacturers are looking for “the opportunity in chaos” of Trump prices
Business & Money

Car manufacturers are looking for “the opportunity in chaos” of Trump prices

Stacey D. WallsBy Stacey D. WallsApril 5, 2025No Comments
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The trucks are indicated from a view of the drone after erased American customs and entered the United States from Tijuana along the American border of Mexico at the Port of Otay Mesa in San Diego, California, on April 2, 2025.

Mike Blake | Reuters

Detroit – While the 25% prices of President Donald Trump on imported vehicles had to take effect, managers Ford engine Scrambled to understand how to respond to new samples.

While they and their industry counterparts are still trying to sail in the impacts, Ford has decided to quickly move in a field by offering an employee pricing program – called “America, for America” ​​- for us, consumers.

These programs have historically been controversial because they sell vehicles close to or lower than the prices of invoices for dealers and arrange for already close beneficiary margins for retailers. But Ford decided that the time had come to launch the program to promote its American operations – the most important among car manufacturers – and to help sales in the concerns of consumers and economic uncertainty due to Trump prices.

“We understand that these are uncertain times for many Americans. Whether navigating in the complexities of a changing economy or just needing a reliable vehicle for your family, we want to help,” Ford said in a statement on Thursday morning by announcing the program. “We have the inventory of retail to do so and a lot of choices for customers who need a vehicle.”

This is an example of how certain car manufacturers are trying to find “the opportunity in chaos” or try to “capitalize at the moment” in the midst of prices, as several analysts in the industry said it CNBC.

“I love it. I think it will stimulate sales,” said Ford Marc McEver dealer, owner of Olathe Ford Lincoln near Kansas City, Kansas. “It’s really exciting to see Ford intervene and take the lead in this program. I think it’s an excellent game. … It’s really a real deal for the customer.”

Ford, which helps financially retailers with the program, heard dealerships a day before the prices that take effect on Thursday. He publicly announced the new program – which takes place until June 30 – hours after the debut starts.

Before the prices, Ford was also widely considered by Wall Street analysts as one of the best -placed car manufacturers due to its large American production footprint, especially for trucks.

The Ford stock has behaved better than its competitors this week, closing the week by 1.4%. This is compared to Chrysler Parent Stelllantis lose 14.2% and General Motors Abandoning 5.4% for the week.

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Others follow the Ford strategy, which is also helped by vehicle prices and profits being higher from the cocovio pandemic. Friday, the crosstown rival announced on Friday a similar program of employee prices, while Hyundai Motor said that it would not increase prices for at least two months to mitigate consumer concerns.

“It is logical that they would try to capitalize at the time,” said Erin Keating, executive analyst at Cox Automotive.

Keating stresses that with Ford and Stellantis – the latter is based in Europe but has major operations and brands in the United States – it is a reminder to consumers that they are “national” companies. Car manufacturers also have stocks, including older models, which they have to sell to make room for more recent vehicles.

“Make room so that these new vehicles enter the exhibition hall and trying to maintain this market share has a lot of sense,” said Keating. “Anyone who is able to beat the price right now, with the level of demand, will be able to keep its market share longer than the others, and perhaps capture something of those who are not willing to meet the customer where they are currently.”

According to Cox Cox, the Ford and Stellantis brands such as Ram Trucks and Jeep have among the highest days of vehicle inventories in the automotive industry.

The two companies were also among the only major car manufacturers this week to report notable declines in vehicle sales in the first quarter. Stellantis was down approximately 12%, while Ford fell 1.3% compared to the previous year.

COX reports that the average for supply vehicles of the National Days was 89 days, while these brands were between 110 days and 130 days. The automotive industry has historically considered that the supply of healthy days is between 60 days and 80 days.

In light of the prices and fears of potential price increases, the demand for vehicles was high. Consumers flocked to concessionary exhibition halls at the end of last month, while Trump confirmed that prices would be made, which would cause significant sales gains for many car manufacturers.

An Ford Raptor van is displayed for sale with a Ford dealership on August 21, 2024 in Glendale, California.

Mario Tama | Getty images

COX Automotive estimated that sales of new vehicles in March reached 1.59 million units sold, considerably exceeding its forecasts and marking the best month for the volume of sales in four years.

“Last week, and including last weekend, was by far the best weekend that I have seen for a very long time,” the CEO of Hyundai Motor North America, Randy Parker in a media call on Tuesday. “I have been doing this now for a very long time. So, a lot of people, I think, rushed this weekend, above all, to try to beat the prices.”

Selling now because future sales are not guaranteed could also help in the event of American recession. JP Morgan increased its rating on Friday for an American and global recession from 40% to 60% chance by the end of the year.

“Because the request is there at the moment, it makes sense [to offer consumer incentives] Because everyone says: “I have to go get it now,” could also go ahead and harvest the advantages now in case we are going into a recession, “said Keating.

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Stacey D. Walls

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