In response to a 25% tariff on imported vehicles, Ford launched an employee pricing program named “From America, For America” to boost U.S. sales. This move, aimed at promoting its largest U.S. operations, reflects a strategy to navigate economic uncertainty. Ford’s stock decreased by 1.4% this week, outperforming rivals like Stellantis, which fell 14.2%, and General Motors, down 5.4%. Following Ford, Stellantis introduced a similar program, while Hyundai committed to not raising prices for two months. Amid the tariffs, vehicle demand soared, with Cox Automotive reporting 1.59 million new-vehicle sales in March, the highest in four years. This surge was driven by consumers rushing to buy before potential price hikes. Despite the sales boom, Ford and Stellantis reported first-quarter sales drops of 1.3% and 12% respectively. Both companies face high inventory levels, with days’ supply between 110 and 130 days, compared to the industry’s healthy range of 60 to 80 days. As recession fears grow, with J.P. Morgan estimating a 60% chance by year-end, automakers are seizing the moment to sell off inventory.
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