The unilateral trade war the U.S. is waging against all of its trade partners was bound to have ripple effects across multiple industries.
For the U.S. automotive industry, the 25% initial global tariffs that have since been negotiated down for a few countries have caused an inventory glut.
“We’re entering a pivotal moment where the ripple effects of tariffs, regulatory shifts, and affordability concerns are converging,” Kevin Roberts, director of economic and market intelligence at CarGurus, told Automotive Drive.
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“As new model year vehicles roll onto lots, we may see a strategic shift toward higher-margin vehicles and gradual price increases, which could further strain consumer budgets,” he said.
Automakers usually turn to discounts and incentives to sustain sales momentum, according to the CarGurus report, but the value of those promotional packages has been declining in recent months.
Ford has ridden tariff-inspired discounts to its best first-half sales numbers ever.
Ford is offering Labor Day deals for popular 2024 models
Ford is looking to get rid of tens of thousands of unsold 2024 model year vehicles, and to do so, it is offering discounts worth up to $17,000 off MSRP, according to CarsDirect.
For New York shoppers, the 2024 Ford Bronco Raptors became eligible for $17,000 in dealer cash on August 21 in an unadvertised manufacturer-to-dealer incentive program.
On September 2, the day after Labor Day, the discount will revert to the previous amount of $14,000. CarsDirect says it is seeing similar savings of $16,000 in California, which will also fall back to $14,000 on Tuesday.
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California pickup truck lovers can also enjoy as much as $6,500 in Retail Customer Cash on XL versions of the 2024 F-250 and F-350. The 2024 Ford Maverick also gets a $3,000 Closeout Bonus Cash offer when buying or leasing.
In the Denver region, shoppers can get the 2024 Ford Escape Plug-In Hybrids with a Model Year Closeout Bonus Cash incentive of $9,000 off MSRP, which is 30% higher than typical.
Ford turns to incentives to get buyers through the door
U.S. companies like Ford are in an especially advantageous position because they (usually) import fewer vehicles than their foreign competitors.
To help push sales and take advantage of buyers rushing to dealerships to buy inventory before tariffs hit, Ford launched its “From America, For America” campaign to provide customers with employee pricing.
“It's really paid off for us in the last 60 days. You've seen a lot of the results in the market. Last month (May)…we actually posted a 14.7% share here in the U.S. That's up 1.9 points of share on a year-over-year basis. A lot of times in this industry we fight for tenths of share, and to have a 1.9% increase year over year was very strong,” said Ford Blue and Model e President Andrew Frick.
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Ford says its total sales rose in the second quarter at a rate about 7x that of the overall industry. The company says it was the top-selling brand in the U.S. during the first half of the year.
“Employee pricing for all was easy to understand and resonated with customers,” said Ford U.S. Sales Director Rob Kaffl.
Ford has since offered other incentives, including July 4 sales and a 0-0-0 financing deal.
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