Ford has suspended its financial guidance for 2025, citing significant risks from supply chain disruptions and potential future tariffs. During a recent earnings call, COO Kumar Galhotra detailed strategies to mitigate these risks, including using bonded carriers for shipping to avoid tariffs and exploring local supply chain development. Despite efforts, Ford anticipates tariffs will cost them $1.5 billion in earnings this year. The recent earnings report showed a revenue decline, and share prices fell following the announcement. The White House assured that consumers would not see price increases due to these tariffs.
Ford's decision to suspend financial guidance for 2025 stems from significant supply chain disruptions and potential future tariffs posing substantial risks to the automotive industry.
The COO highlighted the company's proactive measures, stating, 'The team is also in the trenches, taking actions to minimize the impact of tariffs on our business.'
Ford expects to offset $1 billion in tariff-related costs, with an estimated earnings decrease of $1.5 billion for the full year due to tariffs.
Despite the challenges, the White House indicated that Americans would not face higher car prices due to import duties, aiming for market stability.
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