Car manufacturers are looking for “opportunities in chaos” Trump tariffs

Detroit – as a president Donald Trump25% Tariffs ON Imported vehicles They were defended, the management at the address Ford engine I got to find out how to answer new fees.

While they and their counterparts are still trying to navigate the effects, Ford decided to move quickly in one area, offering a price program – named “From America, for America” – For American consumers.

Such programs were historically controversial because they sell vehicles close or lower than the invoice prices for dealers and eat for strict margins for retail sellers. But Ford decided that it was time to run the program to promote its operations in the US – the largest among car manufacturers – and support sales among consumer problems and economic uncertainty due to Trump tariffs.

“We understand that these are uncertain times for many Americans. Regardless of whether it moves the complexity of the changing economy or simply needs a reliable vehicle for your family, we want to help,” Ford said in a statement on Thursday morning, announcing the program. “We have retail reserves to do this and a large selection for customers in need of a vehicle.”

This is an example of how some manufacturer's manufacturers try to find “an opportunity in chaos” or try to “take advantage of the moment” among TariffsAs several CNBC industry analysts said.

“I absolutely love it. I think it will sell it,” said Ford's dealer Marc Mcever, owner of Olathe Ford Lincoln near Kansas City, Kansas. “It's really exciting to see how Ford accelerates and take the initiative in this program. I think it's a great game. … it's really a real offer for the client.”

Ford, which helps financial retailers in the program, told dealers about this day before the tariffs in which they perform on Thursday. He publicly announced a new program – which lasts until June 30 – hours after the start of the fees.

Going to the tariffs, Ford was also largely seen by analysts from Wall Street as one of the best -positioned car manufacturers due to the large production trail in the US, especially for trucks.

Ford's actions were doing better than his rivals this week, closing the week by 1.4%. This is compared to Chrysler's parent Stellantis loss of 14.2% and General Motors A decrease by 5.4% per week.

Others follow the Ford's strategy, which he also helps Prices and profits of vehicles Being higher than the pandemic with the frames. Crosstown rival, Stellantis on Friday announced a similar employee valuation program, while Hyundai Motor He stated that he would not raise prices for at least two months to relieve consumers' fears.

“It makes sense that they will try to use this moment,” said Erin Keating, COX Automotive executive analyst.

Keating emphasizes that together with Ford and Stellantis – of which the latter is based in Europe, but has serious activities and brands in the USA – it is a reminder for consumers that they are “domestic” companies. Automaks also have supplies, including older models that they have to sell to make room for newer vehicles.

“Making space for those new vehicles that can enter the living room and try to keep this market share, makes a lot of sense,” said Keating. “Everyone who is able to overcome the price at the moment, at the demand level, will be able to keep their market share longer than others, and maybe capture something from those who do not want to meet the customer where they are now.”

Ford and Stellantis brands, such as RAM Trucks and Jeep, have one of the highest days of vehicle supply in the automotive industry, in accordance with to Cox Automotive.

Both companies were also one of the main car manufacturers this week who reported significant decreases in vehicle sales in the first quarter. Stellantis was not about 12%, while Ford fell by 1.3% compared to the previous year.

COX reports that the average in national days was 89 days, while these brands ranged from 110 to 130 days. The automotive industry historically decided that the supply of healthy days was from 60 to 80 days.

In the light of tariffs and fears about the potential increase in prices, the demand for vehicles was high. Consumers came to dealerships At the end of last month, when Trump confirmed that the tariffs would come, which leads to significant sales benefits for many car manufacturers.

Cox Automotive Estimated sale of new vehicles In March, it reached 1.59 million units sold, significantly exceeding its forecast and marking the best month for sales volume for four years.

“Last week, including last weekend, was by far the best weekend I've seen for a very long time,” said Hyundai Motor North America General During a media conversation. “I have been doing it for a very, very long time now. So, I think, many people have rushed this weekend to try to defeat the tariffs.”

Sales now, because future sales are not guaranteed, it can also help if there is a US recession. JP Morgan on Friday He raised his chances of an American and global recession from a 40% opportunity until the end of the year.

“Because the demand is there now, it makes sense (offering consumers incentives), because everyone says:” I have to get them now “, he may as well go and benefit in case we get to the recession,” Keating said.