10% hike on MSRP across all Ford models?

[fdcg27]

Both Ford and GM have enormous capacity in pickups.
In a severely input constrained market, they can command high enough margins to make that capacity irrelevant.
In a market where input availability is at normal levels, this isn't the case.
In the current market, both GM and Ford can build whatever they can sell and the opportunity to take high margins on high retail prices has passed.
In short, you can put whatever number you'd like on the window sticker, but supply and demand determine what you can actually get, and supply has returned.

 

[Oliveoil2]

One word: tariffs.

 

[GON]

The current tariff war is not helping. Ford gets quite a bit of their aluminum from Canada plus other finish parts. Same with Mexico

Plenty of underutilized and abandoned metal producing plants in the U.S., along with robust amounts of raw materials.

Japan and South Korea have done exceptionally well rebuilding their manufacturing capabilities and exports after both countries industries were decimated after wars.

Numerous studies point to tariffs as the center of gravity to promote the highly successful rebuilding of manufacturing in post war Japan and South Korea.

Furthermore, in the history of the world, not a single nation has economical survived that imported more than it exported over the long haul.

This might be about survival for the U.S.

 

[IronMaidenRules]

So it's safe to say this is just a rumor since no one else has heard anything. Dealer lots are fully stocked and I don't think the market will bear a 10% hike--a new F-150 is not milk or gas or electricity.

 

[dubber09]

I too agree that tariffs are causing prices increase.
As far as steel production, factories need equipment, raw materials, logistics, workers and know how. Production won't be cheaper than steel from Mexico or Canada or China.
I understand that tons of parts come from Mexico and they are retaliating, electronics from China will be more expensive as well.
Rumor or not tariffs will increase prices, if US pushes too hard then countries may choose to avoid selling and buying from US further weakening dollar too.

 

[OneLonelyBurrito]

Plenty of underutilized and abandoned metal producing plants in the U.S., along with robust amounts of raw materials.

The problem with the aluminum tariffs is that the U.S. doesn't really have any significant Bauxite reserves, which is the precursor to aluminum. So we basically have to import all of our aluminum.

 

[GrumpyCat]

One word: tariffs.

Meh.

Lets say for the sake of argument lets say a 4800 pound F-150 XLS is 4000 pounds of aluminum. At current average price of $1.23/lb you have $4907 of aluminum. Add 25% tariff cost goes up $1227 or 2.1% of $56,000.

https://markets.businessinsider.com/commodities/aluminum-price says $2705/metric ton or 2205 pounds, $1.23/lb.

However, it is so much fun to fear tariffs and Blame The Orange Man. Don't let facts spoil your fun.

 

[SC Maintenance]

Plenty of underutilized and abandoned metal producing plants in the U.S., along with robust amounts of raw materials.

Japan and South Korea have done exceptionally well rebuilding their manufacturing capabilities and exports after both countries industries were decimated after wars.

Numerous studies point to tariffs as the center of gravity to promote the highly successful rebuilding of manufacturing in post war Japan and South Korea.

Furthermore, in the history of the world, not a single nation has economical survived that imported more than it exported of the long haul.

This might be about survival for the U.S.

The world is moving to Aluminum panels for vehicles so some supply shortage likely exists. I think the first, or one of the first - rolling lines to produce aluminum for Auto here in the USA was one in Alcoa TN which was revamped in 2015. There have been 4 different mills on this property - dating back to turn of the century -- https://news.alcoa.com/press-releas...ong-Demand-for-Aluminum-Vehicles/default.aspx

There are currently two greenfield aluminum mills under construction. One in Bay Minette AL and one in Columbus MS. There both supposed to start producing at production levels in about a year +/-.

 

[Hootbro]

Plenty of underutilized and abandoned metal producing plants in the U.S., along with robust amounts of raw materials.

That is all fine and dandy, but recapitalizing and updating any of that is a many years long if not decades lead time. Does not fix the short term.

 

[JeffKeryk]

The current tariff war is not helping. Ford gets quite a bit of their aluminum from Canada plus other finish parts. Same with Mexico

Absolutely.

 

[Pablo]

One word: tariffs.

Was not aware bauxite exports from most known source countries will have tariffs

Hard pressed to think any of the mentioned tariffs would increase prices on Ford products 10%.

Try again

 

[Exhaustgases]

Its all about covering their rears, for the billions spent on tooling up designing, building factories for EV stuff, oh and pensions as well.
Oh and don't forget dealer ship greed tax, ie profit.

The prices should be down by 50% instead of going up. Just watch all the videos about what happens to some vehicles that don't sell.
We know for sure they will not keep thousands of cars and trucks from past years that didn't sell and flood the market with them, if they did that, all new production would have to shut down, and everyone laid off. So yeah they have to be turned back into more metal for the next batch of new vehicles. No tariffs on that metal.

 

[cptbarkey]

Ford should start thinking a bit creatively, like pausing aluminum body panels.

 

[ford250]

That would make an F-150 XLT about $60,000.00

That’s why I don’t buy new anymore

 

[SC Maintenance]

Ford should start thinking a bit creatively, like pausing aluminum body panels.

The aluminum panels I thought were required to meet Cafe? Presumably that could be paused.

It also greatly increased cargo carrying capacity. You can carry X total weight. If you remove 800 pounds of sheet metal, thats 800 pounds more cargo.

 

[JeffKeryk]

Was not aware bauxite exports from most known source countries will have tariffs

Hard pressed to think any of the mentioned tariffs would increase prices on Ford products 10%.

Try again

Ford CEO Farley said last week that even though Ford gets most of its metal from within the U.S., it will still feel the effects of the tariffs. "Our suppliers have international sources for aluminum and steel. So that price will come through," he said. "We'll have to deal with it."

 

[97prizm]

We just had our local Ford dealership that had been in business for 100 years go out of business. For 10 years they had a packed lot and for the past 3 or 4 years it's been maybe ⅓ full.

Did they take the buy out? From my reading a number of Ford dealers didn't want to invest in ev's so Ford corporate offered a buyout. GM did the same thing with a number of Cadillac dealers.

 

[MNgopher]

Remarkable that such a major story breaks with the second hand word from one dealership GM and then on good old bobistheoilguy.

Stop for a second... think about it.

The internet sure is full of speculation. The majority of it is pure poppycock...

 

[JeffKeryk]

I was at Putnam Lexus in Redwood City today getting our RX 30K service, even though it only has 5600 miles on the clock. We've bought 4 cars at Putnam; they treat us well. Got a nice NX350h for the day.
Asked the sales manager about the tariffs... Most of the RX and NX (Lex bread and butter) come from Canada. He said the tariffs will hurt prices, but Lexus is trying to be preemtive. He showed me the intransit NX supply; sourcing is all Japan instead of Canada. He believes the RX will follow suit. Of course shipping costs will be higher...

 

[SC Maintenance]

Ford CEO Farley said last week that even though Ford gets most of its metal from within the U.S., it will still feel the effects of the tariffs. "Our suppliers have international sources for aluminum and steel. So that price will come through," he said. "We'll have to deal with it."

Typical "American" auto CEO. Wants John Q public to pay $60K for a pickup truck, but they farm production of parts out to the lowest possible global bidder.

Henry Ford paid the then unheard of $5 a day, and invented the 40 hour work week, because he wanted his workers to be able to afford the product they were making, and have time to enjoy it. The fact that the likes of Farley is allowed to lead such an iconic brand tells you how far they have fallen.