Tariffs have turned out to be a blessing in disguise for Ford.
While markets reacted negatively to the U.S. launching a trade war with all of its trading partners, U.S. automakers were not so quietly applauding the deal.
While the 25% tariff on imported vehicles is a boon for domestic producers, the current environment isn’t without a downside for Ford, General Motors, and Stellantis — collectively known as the Detroit Big 3.
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Months ago, Ford said it “supports the administration’s goal to strengthen the U.S. economy by growing manufacturing.” But the company also said that tariffs will eat $1.5 billion of its EBITDA this year, an overall $2.5 billion headwind.
Meanwhile, numerous foreign and domestic companies had a strong first half of the year.
Car buyers, motivated by the threat of tariffs making cars cost more down the road, and car sellers, who used incentive programs to get people through the door, have coalesced to create a vibrant buyer’s market.
Ford has been running its “From America, For America” campaign to provide customers with employee pricing since April.
And the plan has worked.
Ford increased sales in the first half of the year 6.6% to 1.11 million units. Even its struggling EV lineup saw a nearly 15% increase to 156,509 units. Total vehicle sales in the second quarter were up more than 14%.
Despite the employee pricing program’s success, Ford is switching up its incentive game.
Ford’s incentive strategy has worked like a charm.
Image source: Joe Raedle/Getty Images
Ford introduces ‘Zero, Zero, Zero’ incentive to replace employee pricing
Ford says its total sales rose in the second quarter at a rate about 7x that of the overall industry. The company says it was the top selling brand in the U.S. during the first half of the year.
Ford revealed that the incentive program was one of the big reasons for the tremendous sales growth, but the employee pricing program had flaws.
“Employee pricing for all was easy to understand and resonated with customers,” said Ford U.S. Sales Director Rob Kaffl.
“But we also heard from our Ford and Lincoln dealers that more customers could benefit if we could reduce the upfront, out-of-pocket expense to buy or lease a vehicle.”
To address this, Ford is introducing its 0-0-0 summer sales event, featuring zero down payment, zero percent interest for 48 months, and zero payments in the first 90 days of the contract.
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Ford will also offer a two-year Ford Protect Premium Maintenance Plan that covers things like tire rotations and oil changes.
“Summer is peak driving season. Families are on the move; students are preparing for the fall; and small business owners are gearing up for a strong second half. A lower upfront cost lets them get into the vehicle they need today instead of waiting,” Kaffl said.
There are some exceptions to the offer.
Models excluded from the offer include: 2025 and 2024 Raptor models, Mavericks, Rangers, Super Duty trucks (non-XL trims), and Transits (non-ICE cargo and passenger van); 2025 Broncos, Bronco Sports, Expeditions, and Lincoln Navigators; and 2024 F-150 Lightnings and Mustang Mach-Es.
Ford is set up to be a big tariff winner
Ford (F) has backed the tariffs from the beginning.
“Ford supports the administration’s goal to strengthen the U.S. economy by growing manufacturing, and we also support a level playing field globally for domestic and foreign original equipment manufacturers (OEM),” Ford CEO Jim Farley said.
However, unlike the other two U.S. Big 3 automakers, Ford makes the vast majority of its vehicles in the U.S., so it stands to benefit significantly from duties on foreign imports.
Ford says it builds about 80% of the cars it sells in the States.
Ford builds the Maverick and Bronco Sport at its Hermosillo plant in Sonora, Mexico. The Mustang Mach E is manufactured in Cuautitlan, Mexico, and the Ford Edge is made in Ontario, Canada.
Besides that, Ford builds most of the cars it sells here domestically.
“All of our iconic vehicles, really – F-150, Explorer, Bronco; on the Pro side, Super Duty and Transit – are all 100% built here in the U.S.,” said Ford Blue and Model e President Andrew Frick.