In the past few days I have seen news articles saying that GM, Stellantis, VW and Volvo will all be dramatically hit by tariffs. Which car manufacturers will benefit from tariffs?
The news also mentioned that Boeing will benefit from tariffs and trade deals.
Wendy
VW is frelled. The bulk of their US market product is built in Mexico. Only things built in the US are the Atlas SUVs, and a trickle of iD4 EVs. The low volume GTI and R are imported from the EU. The breakdown last year: 230083 Mexican cars, 131407 from the US, 16430 from the EU.
I thought Ford would be well positioned: all the F-series trucks and Transit vans are built in the US. The Escape and Corsiar small SUVs are built in Louisville, and there is plenty of extra capacity in that plant to increase production to take up the slack from the Mexican Bronco Sport and Maverick being hobbled by tariffs. The Mach-E is built in Mexico, but, with the EV incentives ending in September, who cares?
I was long Ford Motor, even though I have total contempt for the way Farley runs things, because of their position in a high tariff environment…I was long Ford.
But no. Farley has announced Ford is abandoning the Escape and Corsair, and closing Louisville to retool for EVs that most people do not want. That means, if you want a Ford SUV, you choice is between the huge and expensive Explorer, and the even more huge and more expensive Expedition. And Chicago does not have anywhere near enough extra capacity to build enough Explorers to replace all the lost Escape, Corsair, and Bronco Sport sales, even if Farley was able to extract that much extra money from Escape prospects.
Ford needs an extra week to cook it’s books for it’s Q2 report. They are supposed to report after market close on July 30.
Steve…still laffing about Ford having “good, stable, management”