If the U.S. administration's 25-percent tariffs remain in effect, Ford and Volkswagen could be forced to raise vehicle prices starting in June, reports Automotive News.
Ford
Andrew Frick, president of Ford Blue and Model e divisions, informed dealers via an internal memo that vehicles manufactured from mid-May onwards will likely be affected by the tariffs and that prices will increase as a result. Vehicles produced from that point onwards will start arriving at dealerships from the end of June, so that’s likely when consumers will start to feel the pain. The prices of models already in stock at dealerships will not be affected.
Currently, Ford has kicked off some aggressive promotions in the U.S., offering consumers employee pricing. The company says the promotion is on until June 2.
Ford imports the Mustang Mach-E, Bronco Sport, and Maverick from Mexico into the United States.
Lincoln
Lincoln President Dianne Craig told Automotive News that the luxury brand continues to ship and sell the Nautilus, although price increases are “likely” if the tariffs persist.
At the launch of the Navigator SUV, which we attended last weekend, brand executives we spoke with sought to be reassuring regarding any relocation of production. Given the high level of uncertainty regarding tariffs, the company wants to avoid acting on a whim. Like many other carmakers, it’s operating in wait-and-see mode. The hope is that everything will be resolved in the coming months.
The Lincoln Nautilus sold at U.S. dealers is manufactured in China.
Volkswagen
The German manufacturer has promised that current new-vehicle prices will remain unchanged until the end of May. Management is monitoring the situation closely and remains ready to react. The goal is to protect customers, but also workers, dealers and suppliers as much as possible.
It’s clear to everyone, however, that the company cannot absorb the tariffs, so sooner or later the added costs will be passed on to customers if tariffs are maintained.