Automakers seek ‘opportunity in the chaos’ of Trump’s tariffs

DETROIT — As President Donald Trump‘s 25% tariffs on imported vehicles were set to take effect, executives at Ford Motor scrambled to figure out how to respond to the new levies.

While they and their industry counterparts are still trying to navigate the impacts, Ford decided to move quickly in one area by offering an employee pricing program — called “From America, For America” — for U.S. consumers.

Such programs have historically been controversial, as they sell vehicles close to or lower than invoice prices for dealers and eat away at already tight profit margins for the retailers. But Ford decided the time was right to launch the program to promote its U.S. operations — the largest among automakers — and assist sales amid consumer concerns and economic uncertainty due to Trump’s tariffs.

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

It’s an example of how some automakers are attempting to find “opportunity in the chaos” or trying to “capitalize on the moment” amid the tariffs, as several industry analysts told CNBC.

“I absolutely love it. I think it’s going to drive sales,” said Ford dealer Marc McEver, owner of Olathe Ford Lincoln near Kansas City, Kansas. “It’s really exciting to see Ford step up and take the lead on this program. I think it’s a great play. … It’s truly a real deal for the customer.”

Ford, which is helping retailers financially with the program, told dealers about it a day ahead of the tariffs taking effect Thursday. It publicly announced the new program — which runs through June 30 — hours after the levies began.

Heading into the tariffs, Ford also was largely viewed by Wall Street analysts as being one of the best-positioned automakers because of its large U.S. production footprint, specifically for trucks.

Ford’s stock fared better than its rivals this week, closing the week down by 1.4%. That compares with Chrysler parent Stellantis losing 14.2% and General Motors dropping 5.4% for the week.

Others are following Ford’s strategy, which also is assisted by vehicle prices and profits being higher since the Covid pandemic. Crosstown rival Stellantis on Friday announced a similar employee-pricing program, while Hyundai Motor said it would not raise prices for at least two months to ease consumer concerns.

“It makes sense that they would try to capitalize on the moment,” said Erin Keating, executive analyst at Cox Automotive.

Keating points out…