Overview

• Ford projects a $1.5 billion reduction in adjusted operating profit this year due to the 25% tariffs on imported vehicles and parts imposed by President Trump.
• The company estimates total tariff-related costs of $2.5 billion but plans to mitigate $1 billion through cost-cutting and sourcing adjustments.
• Ford has suspended forward profit guidance, citing ongoing uncertainty around tariff developments and global trade policies.
• In the first quarter, Ford's revenue fell by 5% year-over-year, with net profit dropping to $471 million from $1.33 billion, and significant losses reported in its internal combustion engine and commercial vehicle divisions.
• The automaker is working to expand U.S.-based supply chains to counter disruptions and has implemented consumer incentives, boosting short-term sales but raising long-term financial challenges.