Ford hiking prices on 3 vehicle models manufactured in Mexico
Ford Motor on Wednesday said it is raising prices on three models produced in Mexico, pointing to higher U.S. tariffs on imported vehicles as one reason for the adjustment.
The vehicles subject to the price increases of up to $2,000 per model include the Maverick, Bronco Sport and Mach-E, Ford said in a statement to CBS News.
The price hikes apply only to imported vehicles that were built after May 2. Those models are expected to arrive dealership lots in late June. Ford noted that cars that have already been shipped and that are currently on dealer lots are not subject to the price hikes.
Ford also said the price increases are a result of "our usual mid-year pricing actions combined with tariffs we are facing."
Reuters was first to report Ford's price changes.
The Trump administration in March imposed a 25% tariff on vehicles assembled abroad. Ford said it is shouldering some tariff-related costs and has not passed all of the burden onto its customers. The U.S. imports roughly 8 million vehicles annually.
Hit to earnings
Ford on Monday said it expects to take a $1.5 billion hit to its operating profit from tariffs this year. The Detroit automaker also withdrew its full-year financial guidance because of mounting economic uncertainty created by the Trump administration's trade policies.
For car buyers, higher U.S. tariffs on foreign-made vehicles, along with retaliatory levies from other countries, could raise the price of cars by $2,000 to $12,000 depending on the model, according to Anderson Economic Group (AEG), a consulting and research firm.
Ford's Mach-e, an electric version of the company's Mustang that is made in Mexico, faces tariffs of more than $12,000, according to AEG. By contrast, the automaker's Explorer SUV, which is manufactured in Illinois, faces levies of roughly $2,400.
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