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Ford said it expected a $ 1.5 billion to this year’s operational profits due to Donald Trump’s prices, while the automotive industry continues to combat the implications of the US president’s trade policy.
Michigan car manufacturer, citing uncertainty linked to samples, also withdrawn the financial guidelines he published three months ago. Ford originally said that it expected to make operating profit between $ 7 billion at $ 8.5 billion for 2025.
Ford said the ravages of the pricing chain have the potential to cause industry -scale disturbances in vehicle production. He also cited increased prices, changes in the way they are implemented and the possibility that other countries will retaliate as additional threats.
“These are substantial risks of the industry, which could have significant impacts on financial results, and which currently make the directives for updating the full year given the potential range of results,” he said.
The global automotive industry is struggling to determine the impact of prices on vehicles and parts imported in the United States, because for months, the White House has changed policies and has made the deadlines. Last week, Trump said that parts imported from China would be exempt, as well as savings from car manufacturers from steel and aluminum withdrawals.
Despite this reprieve, General Motors further reduced his advice last week, citing prices. He said he expects the adjusted operating profits to be between $ 10 billion and 12.5 billion dollars, which places the median point of 23% less than the previous beach.
Ford is better positioned on the prices than its crosstown rival because it makes a higher percentage of vehicles in the United States, but it remains exposed. The company said it expected a blow to adjusted profits of $ 1.5 billion in 2025 due to the samples.
Financial director Sherry House said that Ford had reduced the cost of prices during the first quarter of almost 35% thanks to changes such as shipping vehicles and Mexico parts in Canada on bonded trucks, which do not need to pay personalized border tasks.
But Ford said that net profit in the first quarter had decreased by 64% compared to a year ago to $ 471 million, while the adjusted operating profits fell to $ 1 billion.
Revenues have dropped from 5% to just under $ 41 billion due to the scheduled downtime in several factories worldwide, including the Kentucky critical truck factory which manufactures Ford Super Duty trucks.
Ford shares fell 2.6% of trade after opening hours on Monday.
