Ford sees net tariff headwind of about $2B this year

President Jim Farley stated: “We expect tariffs to be a net headwind of about $2,000,000,000 this year and we’ll continue to monitor the developments closely and engage with policymakers to ensure US auto workers, and customers are not disadvantaged by policy change. We’ve been working hard with the administration. We believe our cycle plan is right for this tariff environment for the coming years. The latest round of tariff policies especially the deals in Japan and Europe and potentially South Korea makes our strategy even more compelling at Ford (F)… We support a single durable national emission standard to ensure sound industry planning, We proposed reforms that are on the table now give us greater powertrain optionality. And reduce our need to buy c o two credits. In fact, our commitments to purchase c o two credits have already been reduced nearly $1,500,000,000 Further changes will balance standards and customer choice and has a potential to unlock a multibillion dollar opportunity over the next two years. Primarily in Ford Blue, which has carried a lot of the compliance burden. EPA’s announcement this week will give us more flexibility respect to our product mix and volume. Once finalized, this will provide further opportunities to improve profits next year and beyond. And finally, reaching world class vehicle quality remains our top priority as a team. Although we face challenges with our older vehicles, the quality improvements on recent model years shows we are on a favorable trajectory.” Comments taken from Q2 earnings conference call.