Last week, we reported on General Motors CEO Mary Barra’s statement that the automaker expected to lose up to $5 billion due to tariffs, and now, Ford is joining the party. The Blue Oval recently said it expects the tariffs to cut its profits by up to $1.5 billion this year, but the gross impact will be higher.
Ford estimates the gross loss to reach $2.5 billion, though $1 billion of that will be offset in other areas. While those numbers put the automaker in a much less precarious position than GM, Ford has already seen $200 million in additional costs in the first quarter and has had to alter its logistics strategy to save money on trucks crossing the borders.
Ford CEO Jim Farley said, “We are strengthening our underlying business with significantly better quality and our third straight quarter of year-over-year cost improvement, excluding the tariffs. Ford Pro, our largest competitive advantage, is off to a strong start to the year, gaining market share in the most profitable U.S. and Europe customer segments.”
Ford’s consumer business is split into gas and electric divisions, named Ford Blue and Model e, respectively. The automaker made around $96 million in the first quarter, a significant drop of 89 percent. Additionally, Ford lost $849 million on its electric Model e division, and the company said it expects the quarter to be its strongest this year.
[Images: Ford]
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