A Ford Mach-E displayed at a Ford dealership in Colma, California. Ford has announced an increase in the sticker prices for the three US models it imports from Mexico by up to $2,000 each. This decision comes shortly after executives had suggested that significant industrywide car price hikes were not expected this year.
The price adjustments were communicated in a memo to Ford dealerships, initially reported by Reuters and later confirmed by Ford. The manufacturer’s suggested retail prices, also known as “sticker prices,” are set to rise between $600 and $2,000 per vehicle, dependent on the features. This price adjustment will not affect vehicles currently in stock but will apply to those manufactured after May 2, set to arrive at dealerships in the coming weeks.
Ford spokesperson Said Deep informed CNN that the price increase is a combination of the company’s standard mid-year pricing adjustments and the impact of tariffs they are currently confronting. Despite facing tariffs, Ford stated that they have not transferred the full tariff costs to customers, emphasizing their commitment to prioritizing customer satisfaction and business integrity.
Since April 3, imported vehicles have been subject to tariffs up to 25%, affecting major automakers who import US vehicles from foreign plants, including Mexico. Ford manufactures three US models in Mexico: the Ford Mustang Mach-E electric vehicle, the Maverick midsize pickup, and the Bronco Sport SUV. These models constituted approximately 17% of Ford’s first quarter US sales.
The increase in prices does not necessarily mean customers will pay $2,000 more per vehicle, as retail prices are typically established through individual negotiations between buyers and dealers. Despite the impact of tariffs on car imports and production costs due to additional tariffs on imported parts, most automakers have been cautious in announcing price hikes linked to import taxes.
Ford has extended its promotional “employee pricing” offer through July 4 and insists it has an adequate inventory of vehicles manufactured and imported prior to the tariff implementation to accommodate purchases until that date. Ford’s CFO Sherry House, in a recent media briefing, refrained from discussing the company’s pricing strategies but expressed a belief that new car pricing in the US would not experience significant increases.
Ford disclosed that they anticipate the tariffs to result in costs of around $1.5 billion for the remainder of the year. House projected that industry pricing affected by tariffs could see an increase of about 1% to 1.5% in the second half of the year. To stay updated with more CNN news and newsletters, you can sign up for an account at CNN.com.
