Ford adopts protectionist measures as electric vehicle losses exceed $5 billion.

Jim Farley, CEO of Ford, has raised questions about the tariffs threatened by President Donald Trump that would affect imports from Mexico, Canada, and China. During a conference call, he criticized the lack of consistency in the administration's tariff strategy, suggesting that it makes no sense to limit it to certain countries. Farley questioned why Hyundai-Kia can bring in 600,000 units to the United States without additional tariffs, and why Toyota has the opportunity to import half a million vehicles under similar conditions.

The CEO insisted that if a tariff policy is to be implemented, it should be comprehensive across the entire automotive industry. He highlighted that a policy that selectively benefits foreign competitors could harm domestic manufacturers. A Ford representative clarified that Farley was not calling for more tariffs, but was pointing out that the current proposals would negatively affect only some global manufacturers importing from North America, while companies from Korea, Japan, and Germany would continue to benefit without penalties.

This more protectionist stance from Farley comes at a challenging time for Ford, which has reported losses exceeding $5 billion in its electric vehicle program for 2024. Additionally, its electric truck model, the F-150 Lightning, was surpassed in sales by the Cybertruck. The company is working on developing a cost-effective electric vehicle platform, but it still has time to complete the project. Although Ford exceeded market expectations for 2024, it anticipates a tougher year ahead.

Meanwhile, Ford is exploring the possibility of offering "extended-range" hybrid powertrains to attract consumers who do not want to fully commit to electric energy. However, it faces challenges posed by the policies of the Trump administration. Farley warned that a 25% tariff on imports from Mexico and Canada could lead to the loss of billions of dollars in profits for the industry, create negative effects on employment in the automotive sector, and result in higher prices for consumers. He cautioned that, if implemented and maintained, they would have a devastating impact.

Despite this, Farley expressed his belief that the administration seeks to strengthen the country’s automotive industry, recognizing its importance for employment, the economy, national security, and communities across the nation.