When Trump announced his tariff-laden “Liberation Day” on April 2, Ford immediately responded with its “employee pricing for all” promotion, showing the company’s dedication to the consumer and American manufacturing in a time of economic uncertainty. This program, which allows customers to pay below MSRP, has been extended to July 4, 2025, and includes most models except for its high-end trucks and SUVs.
“[The] Ford Motor Company: From America, For America program is a commitment to assembling where we sell,” the Detroit automaker said in a statement. “It’s a way for us to give back to the communities that have supported us for generations.”
So far, Ford’s response has been a winning strategy as it reported record U.S. sales of more than 208,000 vehicles in April — a 16 percent increase from the same period last year. Leading sales were its gas-powered trucks (nearly 117,000 units), accounting for more than half of the total.
There are a few ways to interpret this success: 1) consumers are running to the dealerships to buy utility vehicles because they perceive the prices will go up, and 2) Ford’s promotion created goodwill and demand with prospective customers. Both have been considerable factors.
But can Ford continue to navigate the uncertainty? Out of all the major Detroit manufacturers, it appears to be in the best adaptive position as more than 80 percent of U.S vehicles are domestically assembled.
The company also released its revised 2025 financial forecasts this week, projecting a $1.5 billion decrease to its operating profits. While the revision is significant, it is approximately half of what its competitor, General Motors, stands to lose (at least $3 billion).
Yet, the biggest threat to Ford is its lackluster EV division, which have led to a dismal Q1 earnings report. During this week’s earnings call, it reported that electric vehicles, while sales increased year-over-year, caused a loss of more than $800 million or a negative margin of 68.4 percent. Revenue on EVs are so bleak that it has scrapped its Tesla-like FNV4 electrical architecture initiative — a $10 billion total loss for the company in the last 2 years.
If the company is going to survive the Trump administration, it needs to keep scrapping its long-term EV plans and focus on hybrids, the commercial vehicle division, and gas-powered trucks. EVs can only be viable if it can start making them affordable. Otherwise, Ford should just keep doing what it does best.