GM and Ford reported big sales boosts ahead of Trump's 25% tariff on imported cars. People have been "rushing" to buy ahead of the levies, dealers and economists have told BI.
Mark Fields, Former Ford CEO, joins 'Closing Bell Overtime' to talk the impact of tariffs on car buying.
Automakers including General Motors Co. and Hyundai Motor Co. reported a jump in US auto sales, driven by the threat of price hikes from President Donald Trump's tariffs. Researchers predicted that anxious shoppers would accelerate purchases to avoid potential tariff-related price increases, and March results were particularly strong due to this factor.
Automakers General Motors (GM) and Ford Motor (F) reported first-quarter sales Tuesday as the auto industry braces for the impact of the Trump administration's planned tariffs.
Ford Motor reported a 1.3% decline in first-quarter US vehicle sales compared to the same period last year, as the industry braces for the impact of new auto tariffs set to take effect this week.
General Motors GM and Ford F have long been rivals in the American auto industry but which one is the better investment today? Or, given economic uncertainty and tariff concerns, is either stock worth buying now?
Ford's first-quarter U.S. sales were off 1.3% compared with a year earlier, largely due to the discontinuation last year of its Ford Edge SUV. The automaker reports its retail sales, which excludes its fleet business, were up 5% year-over-year.
Ford Motor reported a 1.3% drop in first-quarter U.S. sales on Tuesday, hit by the discontinuation of some models and the timing of certain rental fleet sales.
[00:00:04] Lee Jackson: Doug, I know that you're kind of a big fan of automobiles and you are a resident expert and I happen to read an interesting article published by some buddy named you and it speculated, I think, based on the Wall Street Journal that Ford could cut their dividend.
Ford Motor Company (F 3.34%) finds itself at a crossroads as it navigates a challenging landscape. Its electric vehicle segment has struggled, and today, the stock trades 33% below its 52-week high.
Ford Motor's stock has lost about one-fourth of its value in the last year, but it remains a strong long-term investment due to its EV strategy and dividends. Despite challenges, Ford Motor's EV sales grew 15% YoY in the U.S. in 4Q24, and the company anticipates positive free cash flow in 2025. Ford Motor offers a robust 6% dividend yield, supported by strong free cash flow, making it an attractive option for passive income investors.
For a few hours, it looked like Donald Trump had told car makers not to raise prices for buyers due to the new 25% tariffs on imported cars and parts. This would squeeze margins particularly hard on brands like Mercedes and BMW. The president either changed his mind, or the price cap was never a policy. Trump told NBC he did not care about car price increases at all. This will favor American manufacturers that may not have to raise prices. Now that the president has said he “couldn’t care less about the price increases by car manufacturers that mostly make cars and parts outside the US,” companies like Mercedes need to raise prices or could lose money on every car they sell. Trump believes that US cars will be more attractive because they can keep prices as they are and still make money. Ford (NYSE:F) is the best case in point. Eighty percent of its cars and the parts used to build them are made in the US. The same is not true of companies like GM (NYSE: GM) and Stellantis (NYSE: STLA), which make Jeep, Ram, and Dodge vehicles. CBS estimates that some RAM trucks need increased prices from $80,000 to $100,000 to hold margins. The president’s point is probably accurate. Buyers will gravitate to car models that do not have higher prices or on which price hikes are modest. Models like the RAM will become extremely hard to sell. The same is true with many Mercedes and BMWs. The news also benefits Ford’s shareholders. The news about tariffs drove its stock down 5%. It probably shouldn’t have Trump added a message for car companies when he talked to NBC. “The message is congratulations: if you make your car in the United States, you will make a lot of money. If you don’t, you’ll probably have to come to the United States because if you make your car there, there is no tariff.” The post Trump Pushes Harder For Americans To Buy Fords And US Brands appeared first on 24/7 Wall St..