Ford to offer broad discounts, capitalising on tariff-driven sales boost

Ford Motor plans to announce discounts across multiple models starting Thursday, three sources said, leaning on its healthy inventory to offer customers thousands of dollars off as competitors hike prices to absorb tariff costs. 

Ford will offer its employee pricing - a discounted rate available to Ford workers - to all customers, the sources said.

The program will be called the "From America for America" plan, one of the people said. 

Ford declined to comment. 

The Dearborn, Michigan-based automaker builds 80 per cent of its US-sold vehicles domestically, giving it a greater buffer from US President Donald Trump's tariffs than some competitors. 

However, it still faces the prospect of steep levies on imported vehicle parts. 

Trump last week announced 25 per cent duties on all auto imports, which sent shockwaves through the global industry. 

The United States is the world's largest importer of cars, and nearly half of all cars sold in the country last year were imported, according to research firm GlobalData. 

On Wednesday, Trump broadened the tariffs to a 10 per cent baseline on all imports, with higher rates for some countries. Ford shares fell following the tariff announcement, as did those of General Motors and Tesla. 

While under Trump's order, goods from Mexico and Canada that comply with the USMCA trade agreement between the three countries will largely remain exempt from tariffs, auto exports and steel and aluminum fall under separate tariff policies.  

Barclays analysts said Ford was best positioned to weather the tariffs given its high percentage of US production, while rivals General Motors and Chrysler-parent Stellantis produce around half of their US-sold vehicles domestically. 

Buyers have rushed to dealer lots in recent weeks to snap up cars before prices increase, boosting auto sales in March. 

Ford's dealer lots are more stocked than the industry average, according to Cox automotive. Ford had more than four months of inventory in February, above the industry average of nearly three months. 

Cox also found that Ford's incentive deals were slightly lower than the broader industry in February, with Ford's deals amounting to 6.7 per cent of average vehicle transaction price, while the industry average was 7.1 per cent, or $3,392. 

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