Ford's EV Losses Exceed $5 Billion, Shifts to Protectionist Stance

Ford CEO Questions Trump's Tariff Approach

Jim Farley, the CEO of Ford, has raised concerns regarding the proposed tariffs from President Donald Trump targeting imports from Mexico, Canada, and China.

He questioned the logic of a selective tariff implementation, suggesting a broader approach might be more effective.

Competitive Disadvantage

During a conference call on Wednesday, Farley pointed out the inconsistency of the proposed tariffs.

He specifically inquired why manufacturers like Hyundai-Kia, importing 600,000 vehicles, and Toyota, with a half-million vehicle imports, are not subject to these additional tariffs.

Farley argued that a limited tariff policy, even if temporary, would disproportionately benefit Ford’s import competitors.

He emphasized the need for a comprehensive industry-wide approach to tariffs, rather than “cherry picking” specific countries.

Ford spokesperson Ian Thibodeau clarified that Farley was not advocating for increased tariffs.

Thibodeau stated that Farley’s intention was to highlight the negative impact the current proposal would have on certain global automakers importing from North America.

Financial Challenges for Ford

Farley’s comments arrive during a financially challenging period for Ford.

The company reported a loss exceeding $5 billion on its electric vehicle (EV) program in 2024.

Sales of the F-150 Lightning, Ford’s electric pickup truck, were lower than those of the Cybertruck last year.

While Ford is developing a more affordable EV platform, its availability remains several years away.

Despite exceeding Wall Street’s expectations for 2024, the company anticipates a more difficult year ahead.

Hybrid Powertrain Expansion

Ford is exploring the expansion of its powertrain offerings to include “extended range” hybrids.

These systems combine electric power with a gasoline generator, aiming to appeal to customers hesitant to fully commit to battery-electric vehicles.

Potential Impact of Tariffs

Farley cautioned that a 25% tariff on imports from Mexico and Canada could result in “billions of dollars” in lost industry profits.

He also predicted an “adverse effect” on U.S. automotive jobs and “higher prices” for consumers.

Should these tariffs be implemented and sustained – a possibility still uncertain given a recent deadline extension – Farley believes the impact would be devastating.

Despite these concerns, Farley expressed confidence in the administration’s commitment to bolstering the U.S. auto industry.

He stated that the administration recognizes the industry’s importance to employment, the economy, national security, and communities nationwide.