Ford Motor reported a 1.3% decline in first-quarter US vehicle sales compared to the same period last year, as the industry braces for the impact of new auto tariffs set to take effect this week.
The drop was primarily due to the discontinuation of the Ford Edge SUV, which was manufactured in Canada, with sales of the model plummeting 94% as dealers clear out remaining inventory.
Ford stock was down around 0.90% in the early hours of trading on Tuesday.
| Sales | Q1 2025 | Q1 2024 | % Change |
|---|---|---|---|
| Total Electrified Vehicles | 73,623 | 58,644 | 25.5 |
| Electric Vehicles | 22,550 | 20,223 | 11.5 |
| Hybrid Vehicles | 51,073 | 38,421 | 32.9 |
| Internal Combustion | 427,668 | 449,439 | -4.8 |
| Total Vehicles | 501,291 | 508,083 | -1.3 |
The company, in a statement, said:
Total Ford sales for the quarter decreased 1% year over year, mainly due to daily rental fleet sales timing and lost volume from the discontinuation of the Ford Edge and Transit Connect.
Despite the overall decline, Ford’s retail sales—excluding fleet business—rose 5% year-over-year, driven by a 19% surge in March.
Based on strong retail sales in March, total sales for the month increased by 10%.
The increase comes as consumers rushed to dealerships to buy vehicles ahead of expected price hikes linked to tariffs.
Industry braces for Trump tariff fallout
President Donald Trump’s new trade measures, which include 25% tariffs on imported vehicles starting Thursday, have created uncertainty in the auto market.
Industry observers are also watching for potential “reciprocal” tariffs set to be announced on Wednesday, which could further affect automakers.
JD Power recently forecast strong industry-wide sales for March, with a 13% year-over-year increase in retail sales attributed to buyers looking to lock in prices before potential tariff-induced hikes.
While the broader auto market is expected to post a slight year-over-year growth of around 1% in the first quarter, analysts caution that rising prices and reduced incentives from automakers and dealers could temper demand in the coming months.
US automakers pursue exemptions
US automakers are intensifying efforts to secure tariff exemptions on imported car parts ahead of new trade levies set to take effect this week, as per a Bloomberg report.
Ford, General Motors, and Stellantis have reportedly engaged with the White House, Commerce Department, and the US Trade Representative’s office to argue against duties on low-cost components.
The tariffs, which include a 25% tax on fully assembled vehicles starting April 3, are designed to support domestic manufacturing.
However, automakers warn that taxing individual parts will drive up production costs and ultimately raise car prices, which are already averaging close to $50,000.
To preempt the impact, manufacturers have stockpiled vehicles, while buyers rushed to make purchases before the tariffs hit.
Companies are particularly pushing for exemptions on inexpensive, labor-intensive parts such as wiring sheaths, often produced in low-wage countries like Mexico.
They argue that these tariffs will not significantly boost domestic production but will instead burden consumers and weaken demand.
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