Ford Hikes Prices on Mexico-Made Models by as Much as $2,000
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Ford Motor Co. is boosting sticker prices on models it builds in Mexico by as much as $2,000 even after its top executive said it would hold the line on pricing to see how rivals would react to President Donald Trump’s 25% auto tariffs.
The increases are effective May 2 and affect newly built Maverick small pickups, Bronco Sport compact sport utility vehicles and the electric Mustang Mach-E, according to a company memo to dealers seen by Bloomberg News.
A Ford spokesman confirmed the increases, saying they reflect a combination of typical midyear pricing adjustments and some impact from tariffs. Ford has not passed on the full cost of tariffs to customers, and vehicles currently in dealer inventory won’t be affected, the spokesman said.
The move underscores how automakers are wrestling with how to manage rising costs due to Trump’s tariffs without slowing brisk auto sales helped by consumers looking to buy before the levies increase prices.
CEO Jim Farley said last week that Ford would hold off on increasing prices until it sees how its competitors react to Trump’s tariffs.
“We have to watch what our competitors do, that’s the key,” Farley told reporters at the company’s truck plant in Kentucky April 30, where he contended rivals face cost increases of $5,000 to $10,000 per car from tariffs. “Will they absorb those? Will they pass them on to customers? That will be a big decision because the pricing decision is a competitive decision.”
Ford said this week it expects a $2.5 billion hit from tariffs this year and expects to offset about $1 billion of that with cost cuts. General Motors Co., America’s top auto importer, said it sees as much as $5 billion in tariff exposure this year.
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Trump eased the impact of his tariffs on automakers recently to give them more time to move production to the U.S. The president also has shielded auto parts made in Mexico and Canada that are compliant with the trade agreement the U.S. has with those countries.
Despite that, Ford raised prices on the Mach-E by as much as $2,000, on the Bronco Sport by as much as $1,200 and on the Maverick by as much as $1,150, according to the company memo to dealers last week, which was reported earlier by Reuters. Some versions of those models will see smaller increases.
The higher-priced models will not arrive in dealer showrooms until late June and are still eligible for Ford’s discount program that offers employee-pricing for everyone, the Ford spokesman said.
