Ford Prepares for a $2 Billion Impact from Trump's Tariff Legacy | Carscoops

      Despite achieving record revenue and strong truck sales, Ford is facing increased costs and a burgeoning tariff bill that continues to escalate.

      The tariffs have already cost the company $800 million, with projections suggesting the total could reach $2 billion by the end of the year.

      Ford reported record second-quarter revenue of $50.2 billion but still faced a net loss of $36 million.

      The company's market share in the US rose to 14.2% amid a surge in demand for larger SUVs.

      Ford has joined other automakers in reporting significant losses due to tariffs imposed by the Trump administration, revealing in their second-quarter earnings that these tariffs cost them around $800 million.

      This amount is considerably lower than GM's $1.1 billion loss, but the financial repercussions are ongoing. If current trends continue, the tariffs could end up costing Ford approximately $2 billion this year, enough to cover the salaries of 20,000 employees at $100,000 each or perhaps alleviate their recent recall issues.

      Strong revenue figures were overshadowed by special charges that impacted earnings.

      In addition to the tariff impacts, Ford achieved record revenues of $50.2 billion in the second quarter. However, this did not prevent the company from incurring a net loss of $36 million due to special items. According to Ford, this loss stemmed from a “field service action and expenses related to the previous cancellation of an electric vehicle program,” likely referring to the discontinued three-row SUVs.

      Ford has revised its full-year outlook, now forecasting an adjusted EBIT of $6.5 to $7.5 billion, a decrease from the earlier estimate of $7.0 to $8.5 billion. This adjustment reflects ongoing difficulties, including issues with supply chains, changing demand, and the overall implications of trade policies.

      Despite some mixed results, Ford CFO Sherry House stated they are reshaping the company to be a “higher-growth, higher-margin, and more sustainable business – focusing capital where they can compete, succeed, and expand.”

      On the product front, Ford highlighted that their truck lineup achieved its best performance in two decades, and Bronco sales reached new heights. The automaker also reported strong demand for the redesigned Expedition and Navigator, and the Ranger plug-in hybrid has been "well received across Europe." In the US, market share rose by 1.7 points to 14.2%.

      Additionally, Ford mentioned that electrified vehicles now make up nearly 14% of U.S. sales and announced an event scheduled for August 11, where they plan to provide more details about their initiatives to design and manufacture innovative electric vehicles in America.