DEARBORN – Ford has been touting its American-made roots as Trump’s tariffs target international automakers, but the company’s CEO has warned it’s still dependent on global trade to make its vehicles.
Jim Farley, appearing on CNN, said Ford will be affected when tariffs go into effect this Saturday on auto parts, which could raise consumer prices. And while the White House is encouraging companies to buy domestically made parts, that’s just not possible some of the time.
“We have to import certain parts,” Farley said. “A lot of parts, like fasteners, washers, carpet … are just not available. We can’t even buy those parts here.”
Ford CEO Jim Farley
And even when some parts might be availably from U.S. suppliers, the CEO said, it makes more economic sense to buy imports as doing otherwise would drive retail prices notably higher. Between 20% and 25% of the parts made to make the best-selling F-150, for instance, are imported, Farley said.
“The affordability of parts is a really important thing for America because we’ve got to keep the vehicles affordable,” he said. “Yes, we want to make them like Ford does in the U.S., but we also want to make the vehicles affordable that are built in the U.S.”
To stoke demand as tariffs impact pricing, Ford will continue to offer its employee pricing for another month, but that doesn’t mean buyers still won’t have some sticker shock, especially when the promotion ends.
Analysts have warned tariffs could add thousands of dollars to car prices. Even with the executive order signed Tuesday that offers tariff relief to automakers, prices are still set to increase.
Trump Tariffs To Drive General Motors, Nissan To Boost Production At US Plants
GM’s new logo builds on a strong heritage while bringing a more modern and vibrant look to GM’s familiar blue square.
General Motors and Nissan are boosting production at their US-based plants, while Chrysler-parent Stellantis has rolled out bigger discounts in response to President Trump’s reciprocal tariffs.
GM said it was adjusting its manufacturing strategy by shifting more production of its popular light-duty trucks to Fort Wayne, Ind., following the Trump administration’s imposition of a 25% tariff on imported vehicles and auto parts.
GM CEO Mary Barra hinted at this shift during an earnings call earlier this year, emphasizing the company’s capacity to adapt.
“We have the capacity in the United States to shift some of that,” Barra stated, indicating that domestic production could help the automaker sidestep significant tariff-related costs.
But the Detroit-based automaker will now have to concentrate production domestically in order to maintain competitive pricing amid higher tariffs.
The 25% tariff on imports went into effect Thursday, while the tax on auto parts kicks in May 5.
GM’s decision to bolster production at its Fort Wayne facility will result in creating between 225 to 250 new jobs, according to a letter that was sent by United Auto Workers chairman Rich LeTourneau to employees.
LeTourneau emphasized the importance of higher production levels for job stability, noting that increased volume is crucial to ensuring ongoing employment.
To support the increased output, GM will hire temporary workers and schedule additional overtime shifts, according to Fort Wayne Plant Director Dennys Pimenta.
Additionally, the company plans to speed up the assembly line, increasing its pace to about nine or 10 vehicles per hour.
Implementing these operational changes requires a brief pause in production, with the facility set to shut down temporarily from April 22 to April 25 immediately following Easter weekend.
The brief shutdown won’t affect production at GM’s other plants in Oshawa, Canada, and Silao, Mexico.
Before GM fully transitions its production strategy — a process that could take years — the automaker and others with global supply chains face potentially thousands of dollars in additional vehicle costs due to the new tariffs.
Currently, the Chevrolet Silverado pickup truck’s starting price is $38,995, while the GMC Sierra starts slightly higher at $40,295.
Meanwhile, Nissan opted to maintain two production shifts at its Smyrna, Tenn., plant — reversing an earlier decision to scale down to one shift.
The Japanese automaker cited the need to bolster domestic output amid tariffs affecting imported vehicles from Mexico and Japan.
Stellantis — which also owns Jeep and Ram — is launching a new sales initiative that extends employee-level pricing to all US customers on most of its vehicle lineup, according to the Wall Street Journal.
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