Ford will raise the sticker price on the cars it imports from Mexico
Context:
Ford has announced an increase in the sticker prices for three of its US models imported from Mexico, namely the Ford Mustang Mach-E, Maverick, and Bronco Sport, by up to $2,000 due to combined mid-year pricing actions and tariffs. These vehicles, which account for 17% of Ford’s first quarter US sales, will be affected by tariffs of up to 25% on imported vehicles and parts, although Ford has not passed on the full cost to customers. Despite this, Ford maintains sufficient inventory to cover purchases until July 4 under promotional 'employee pricing'. Retail prices are typically set through negotiations between buyers and dealers, meaning the price hike does not guarantee a $2,000 increase per vehicle. Ford anticipates the tariffs will cost the company about $1.5 billion this year, with industry prices expected to increase by 1% to 1.5% in the second half of the year due to tariffs.
Dive Deeper:
Ford is increasing sticker prices for the Ford Mustang Mach-E, Maverick, and Bronco Sport models imported from Mexico, with hikes ranging from $600 to $2,000, driven by routine mid-year pricing adjustments and tariffs.
The tariff on imported vehicles and parts has been set at up to 25% since April 3, affecting production costs, although Ford is not passing the full tariff cost onto its customers.
These price hikes will not apply to vehicles already on dealership lots but will affect those produced after May 2, which will begin arriving at dealerships in the following weeks.
Despite the price increases, Ford is offering promotional 'employee pricing' through July 4, supported by a sufficient inventory of vehicles imported before the tariff implementation.
Retail prices are determined through negotiations between buyers and dealers, meaning the MSRP increase does not necessarily translate to a $2,000 increase in purchase price.
Ford expects the tariff-related costs to amount to about $1.5 billion for the remainder of the year, with a predicted 1% to 1.5% industry-wide price increase due to these tariffs in the second half of the year.
The Ford Mustang Mach-E, Maverick, and Bronco Sport models accounted for approximately 17% of Ford’s US sales in the first quarter of the year.