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USA Today
2 hours ago
- Automotive
- USA Today
Ford's response to tariffs birthed a pro-America campaign that outsold Toyota
On the evening of March 27, Ford Motor Co.'s marketing leaders called a meeting at World Headquarters in Dearborn, Michigan. The country was in turmoil as the second quarter was about to start. The automaker had to do something to keep showrooms buzzing as consumers fretted over newly issued tariffs potentially pushing car prices higher. Ford already had a new ad campaign and incentive program "in the can," as they say. It was good to go. But something felt off. "This was a moment in time," Rob Kaffl, Ford's director of U.S. sales and dealer relations told the Detroit Free Press, part of the USA TODAY Network, about that night. "We were thinking: What would it take for Ford Motor Co. to shine during this uneasiness in the market both for consumers and automotive?" That night, Ford leaders would end up ditching the company's previous campaign plans and instead spend the weekend in a frenzy working up a new campaign with a message to promote the automaker as America's car company, dubbed: "From America, For America." As part of it, Ford offered all customers employee prices on most of its vehicles starting April 3 running to July 7. The "From America, For America" campaign would end up offsetting Ford's dismal first-quarter results and provide a positive light during a year in which Ford is leading in safety recalls. The campaign was instrumental in delivering a 14% gain in Ford's second quarter sales and, on July 1, Ford brand — not including Lincoln — became the No. 1 selling brand in the nation for the first half of the year selling 1,058,323 vehicles, topping its closest rival, Toyota brand, by just 550 vehicles and outselling Chevrolet brand sales by 136,437 vehicles. General Motors, which makes Chevrolet, Buick, Cadillac and GMC brands, remained the top-selling automaker for the first six months selling 1,439,951 vehicles in the United States. Toyota and GM spokespeople declined to comment for this article. This is the eighth time in the past decade that Ford brand has taken the sales crown for the first half of the year, according to But given the circumstances and how it came to pass, this time makes it the most meaningful victory, Kaffl said. "Had we not beat Toyota, we'd still be high-fiving honestly," Kaffl said. "All of us were really proud of what we accomplished over the last 90 days. This campaign and what Ford represents isn't just a marketing campaign. It's every man and woman working tirelessly in our Michigan assembly plants and our Kentucky assembly plants. … This is the U.S. manufacturing that makes us so proud to be working for a company like Ford. To beat Toyota is the cherry on the sundae." Ford's American history: Bryan Cranston champions Ford's new philanthropy push at revived Detroit landmark 'A win is a win' The excitement at the Glass House, Ford's world headquarters in Dearborn, flowed from the top down on July 2, as the company leaders digested the news. CEO Jim Farley told the Detroit Free Press in an email he was proud that the corporate team and dealer body rallied as one in a time of uncertainty for consumers. "Toyota is a tough competitor, but this is about much more than a sales race, it's about being the company Americans trust and turn to when it matters," Farley, who started his career in marketing at Toyota, said. "This was the result of a lot of teamwork, from our awesome factory teams delivering the production and launching new vehicles with quality, to our marketing team getting out the word about our 'From America, For America' employee pricing offer to the nearly 3,000 Ford dealers that serve every community across the country.' For Ford dealer Tim Hovik, owner of San Tan Ford in Gilbert, Arizona, about 15 miles east of Phoenix, beating Toyota is simply "exciting," he said. "There's a lot going on in our country right now," Hovik said. "There are few things more American than Ford. Ford has been a titan of our industrial strength for a century. I've talked to a number of dealers and it's a huge pride point for dealers to be the distribution center for Ford Motor Co. right now." But there are some who might say Ford's sales victory is not completely reflective of Americans answering Ford's call to patriotism. That's because the sales figures include commercial fleet sales. But others say, a sale is a sale and a win is a win. "These are fleet and retail combined and Ford does include heavy trucks," said Ivan Drury, director of insights at "But hey, a win is a win and you cut anything up enough and nothing matters or is anything really apples to apples?" Put another way by Ford dealer Brad Akins, owner of Akins Ford in Winder, Georgia, "A one-point win is the same as a touchdown win." The birth of 'From America, For America' On March 27, the auto industry needed a win. Earlier in the day, President Donald Trump announced he was imposing a 25% tariff on all imported vehicles and imported automotive parts to take effect on April 3. Given that most vehicles made in the States use parts from suppliers abroad, the move almost guaranteed car prices — no matter where the vehicle was made — would rise to offset the added costs of tariffs. Ford was confident on one front: It has the largest manufacturing footprint in the United States of any automaker, importing just 21% of the vehicles it sells here. GM, on the other hand, imports 46% of the vehicles it sells in the United States. According to last year GM led imports bringing in about 750,000 vehicles for sale in the United States, mostly from Canada and Mexico. Japan-based Toyota was second with 657,000 vehicles imported. Still Farley had concerns about the tariff's impact. In a memo sent to the Ford workforce on March 27, which was obtained by the Detroit Free Press, Farley wrote, "While Ford supports the president's vision of building a stronger auto industry and manufacturing base in the United States, the situation is dynamic and the impacts of the tariffs are likely to be significant across our industry — affecting automakers, suppliers, dealers and customers." On top of that, Ford's U.S. sales in the first quarter came in 1.3% lower than the year-ago period. Ford reported a 5% decline in total revenue for the quarter. And, despite continued moves to improve quality in recent years, Ford continues to lead the industry in the number of safety recalls it has issued this year. So that night, Ford's leadership rethought its planned April sales campaign, seeking to guarantee a win. "We were talking about things like during 9/11, right, when Ford came out at the time with 0% financing and GM obviously did the same thing," Kaffl said. "That was a time when the U.S. industry could be there for the consumer. It was just collectively: How do we get that message out there that we are the largest U.S. manufacturer, the most American manufacturer out there?" The idea of "From America, For America" was born. In its TV spots, an announcer asked, "Which automaker employs the most hourly autoworkers in the country? Ford. Which automaker assembles the most vehicles in the country? Ford. That's not a coincidence. It's a commitment. And, now at this unprecedented moment in automotive history, who benefits from Ford's commitment to America for over 120 years? You." In case you missed it: Ford's April sales, led by pickups, surged 16% ahead of tariffs Working through the weekend With Farley signing off on it, the next 72-plus hours became a whirlwind. 'We went into full execution mode working through the weekend, Friday through Sunday, in the office to pull together the offers, playbooks for dealers, the marketing team getting behind it, making sure we were aligning the production that was getting released and have the inventory to back it up," Kaffl said. When it came to inventory, Ford was in a good place. At the end of March, Ford's gross day supply of inventory, which includes the inventory at dealerships as well as vehicles that are in-transit to a dealership, was a robust 74 days, Kaffl said. Days' supply is a measure of the number of days it would take at the current sales rate to deplete available inventory. The auto industry typically considers 60 days to be a healthy rate. The marketing team had to coordinate with Ford's manufacturing teams to ensure the flow of products made it out of factories to dealerships smoothly. Ford had a new Expedition and Lincoln Navigator coming, too, so it was crucial those launches rolled out amid this program, Kaffl said. Farley goes to Ford dealers for reaction By early the next week, Ford was ready to unveil the campaign to its dealers. "They presented it and we loved it," said Eddie Stivers, president of Stivers Automotive Group in Atlanta and chair of the Ford National Dealer Council. "This was the quickest mobilization of a marketing plan that I can remember. They pulled it together over a weekend. It was a quick hard shift and they executed it at a high level." Stivers, who owns five Ford stores across Arizona, Iowa, Alabama and Georgia, has been a Ford dealer for 31 years and said this was the best sales and marketing campaign he can remember because it removed the apprehension for consumers out of what was coming in terms of new car prices. "Consumers were concerned," Stivers said. "They didn't know what would happen with pricing. It provided transparency and provided clarity in an unclear time. And it resonated with consumers. Since 9/11, this is the most patriotic time I can remember. The feel of the country is pro-America and 'From America, For America' is resonating with the public." Sales across his stores rose 25% in the second quarter compared with the year-ago period, Stivers said. He expects sales to be up for the first half, too, across his Ford stores, on the second-quarter sales strength. At Akins Ford in Winder, Georgia, located about 60 miles northeast of Atlanta, the campaign pumped up second-quarter sales by 11%, most of which were new customers turning in imports and other brands, to buy Ford SUVs and pickups, owner Brad Akins said. The campaign made Akins Ford the No. 1 selling Ford dealership in the nation, unseating Livonia, Michigan-based Bill Brown Ford by selling 153 more vehicles in the quarter than Bill Brown Ford did, Akins said and Ford confirmed. 'The biggest thing we heard from customers was that they didn't hear price increases," Akins said. "In our market, it really stifled out the message of an increase and brought about the better message of value.' As the campaign rolled out, Farley and the senior leadership team took to the road for the second annual "dealer engagement tour," Stivers said. Over six weeks, Farley visited with a third of Ford's 2,800 dealerships, spending half a day with various dealers in Ford's five regions in an 'intimate setting' asking them, 'what should we do next?' Stivers said. 'There was a lot of great input. Jim took copious notes and based on the television (advertising) that's already in rotation it was a collaborative process," Stivers said. The most recent ads Stivers is referring to were launched in mid-June. They are a series of provocations at other American auto manufacturers. Ford references the 2008 financial crisis to declare itself the most American among its local competitors — GM and Stellantis (formerly Chrysler), without naming them specifically. In the ad, Ford employees working in factories say that if other car companies "were like us, they would have said no to the taxpayer bailout and added thousands of American jobs." During the financial crisis, GM and Chrysler both benefited from federal bailouts to keep their companies afloat. Ford declined a bailout. Instead, it borrowed $6 billion from the Department of Energy and had mortgaged many of its assets before the crisis, including its famous Blue Oval logo. As the Free Press previously reported, Ford said it is the only manufacturer among the Detroit Three to increase hourly jobs in America since the recession, adding 4,500 jobs, while GM has gone from 78,000 in 2007 to 47,000 today, and Stellantis has gone from 45,000 pre-recession jobs to 38,800 hourly workers today. GM and Stellantis did not comment on that report. Stivers attended the meeting with Farley in the Southeast region and said, 'it was a frank, intimate and private and positive conversation with leadership. They care enough to engage with their dealers. This was a conversation on how we become better in a manufacturer-dealer relationship and serve the customer better.' 'Tough to stop a freight train' For that reason, Stivers said he has no doubt Ford will have a strong third quarter, noting, "It's tough to stop a freight train flying down the track and that's what it feels like to be a Ford dealer." On July 8, Ford is expected to reveal a new campaign to replace its employee pricing in "From America, For America." Kaffl said it will keep Ford's sales momentum going in the second half. He wouldn't reveal details of the new campaign, only to say, "We're trying to answer maybe a different type of consumer need or pain point they have to buying vehicles. We're still finalizing plans.' Stivers said he has seen the new campaign and said it will be a "robust" program. But some analysts aren't optimistic. David Whiston of Morningstar said the employee pricing campaign juiced up demand for Ford. He said it also helped that Ford has some "desirable vehicles as well" to drive sales. "I don't expect the momentum to continue at the same pace after the promotion ends ... and I don't expect Ford to stay ahead of Toyota unless they continue discounting in some form," Whiston said. Dan Ives, managing director at Wedbush Securities, agreed, saying: "This was a step in the right direction for Ford. Still heavy lifting ahead with headwinds." But Ford has new vehicle variants coming to spark buyer interest. The F-150 Lobo, a performance street truck, hits the market in the third quarter. Ford will also add the off-road trim level, Explorer Tremor, to that SUV lineup. 'The cars are the stars. I think our product lineup is set up for it," Kaffl said. "There's been ups and downs in the industry but there is still a really healthy retail industry that's out there. So with our stock position, the product lineup we have and the soon to be announced third quarter program … I think if this program resonates the way we think it will, the way employee pricing did, I think we'll have success in the third quarter.' Ford has already started increasing new vehicle production for the second half in anticipation for strong sales momentum, he said. Besides, Kaffl said, nothing makes him happier than to beat analysts' predictions. Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
Miami Herald
3 days ago
- Automotive
- Miami Herald
Ford debuts plan to increase sales that car buyers will love
Tariffs have turned out to be a blessing in disguise for Ford. While markets reacted negatively to the U.S. launching a trade war with all of its trading partners, U.S. automakers were not so quietly applauding the deal. While the 25% tariff on imported vehicles is a boon for domestic producers, the current environment isn't without a downside for Ford, General Motors, and Stellantis - collectively known as the Detroit Big 3. Related: Ford CEO Jim Farley has a scary message about China EVs Months ago, Ford said it "supports the administration's goal to strengthen the U.S. economy by growing manufacturing." But the company also said that tariffs will eat $1.5 billion of its EBITDA this year, an overall $2.5 billion headwind. Meanwhile, numerous foreign and domestic companies had a strong first half of the year. Car buyers, motivated by the threat of tariffs making cars cost more down the road, and car sellers, who used incentive programs to get people through the door, have coalesced to create a vibrant buyer's market. Ford has been running its "From America, For America" campaign to provide customers with employee pricing since April. And the plan has worked. Ford increased sales in the first half of the year 6.6% to 1.11 million units. Even its struggling EV lineup saw a nearly 15% increase to 156,509 units. Total vehicle sales in the second quarter were up more than 14%. Despite the employee pricing program's success, Ford is switching up its incentive game. 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. Ford revealed that the incentive program was one of the big reasons for the tremendous sales growth, but the employee pricing program had flaws. "Employee pricing for all was easy to understand and resonated with customers," said Ford U.S. Sales Director Rob Kaffl. "But we also heard from our Ford and Lincoln dealers that more customers could benefit if we could reduce the upfront, out-of-pocket expense to buy or lease a vehicle." To address this, Ford is introducing its 0-0-0 summer sales event, featuring zero down payment, zero percent interest for 48 months, and zero payments in the first 90 days of the contract. Related: Popular Ford newcomer overtakes Jeep in a key area Ford will also offer a two-year Ford Protect Premium Maintenance Plan that covers things like tire rotations and oil changes. "Summer is peak driving season. Families are on the move; students are preparing for the fall; and small business owners are gearing up for a strong second half. A lower upfront cost lets them get into the vehicle they need today instead of waiting," Kaffl said. There are some exceptions to the offer. Models excluded from the offer include: 2025 and 2024 Raptor models, Mavericks, Rangers, Super Duty trucks (non-XL trims), and Transits (non-ICE cargo and passenger van); 2025 Broncos, Bronco Sports, Expeditions, and Lincoln Navigators; and 2024 F-150 Lightnings and Mustang Mach-Es. Ford (F) has backed the tariffs from the beginning. "Ford supports the administration's goal to strengthen the U.S. economy by growing manufacturing, and we also support a level playing field globally for domestic and foreign original equipment manufacturers (OEM)," Ford CEO Jim Farley said. However, unlike the other two U.S. Big 3 automakers, Ford makes the vast majority of its vehicles in the U.S., so it stands to benefit significantly from duties on foreign imports. Ford says it builds about 80% of the cars it sells in the States. Ford builds the Maverick and Bronco Sport at its Hermosillo plant in Sonora, Mexico. The Mustang Mach E is manufactured in Cuautitlan, Mexico, and the Ford Edge is made in Ontario, Canada. Besides that, Ford builds most of the cars it sells here domestically. "All of our iconic vehicles, really – F-150, Explorer, Bronco; on the Pro side, Super Duty and Transit – are all 100% built here in the U.S.," said Ford Blue and Model e President Andrew Frick. Related: Popular Ford newcomer overtakes Jeep in a key area The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Gizmodo
5 days ago
- Automotive
- Gizmodo
Ford Just Made It a Lot Easier to Buy a Car This Summer
On the surface, Ford's latest announcement is a fantastic deal for car buyers. The company is retiring its 'employee pricing for all' campaign and rolling out an aggressive 'Zero, Zero, Zero' summer sales event: zero down payment, zero percent interest for 48 months, and zero payments for the first 90 days. It's a tempting offer, but when you look closer at the economic landscape, it starts to look less like a confident summer promotion and more like a defensive maneuver against a gathering storm. The automaker's new 'zero down, zero interest' is a calculated response to economically stressed consumers and the looming expiration of the $7,500 EV tax credit. Ford says it's responding to customers who, squeezed by higher mortgage rates and travel costs, want to buy a new car without a hefty upfront payment. 'Many families have seen their savings go toward higher mortgage rates and summer travel costs,' Rob Kaffl, who is director, U.S. sales and dealer relations said in a blog post.. 'They want a new vehicle but also want options that allow them to forgo an upfront down payment.' Data from the Federal Reserve Bank of New York's latest Q1 2025 Household Debt and Credit report paints a stark picture. Total auto loan debt in the U.S. has swelled to $1.64 trillion. More importantly, the rate of serious delinquencies—loans 90 or more days past due—has climbed to 2.94%. While this figure has stabilized recently, it remains elevated, signaling that a significant number of Americans are struggling to make their car payments. For many, a down payment is no longer feasible, and with average new car loan rates still high, a zero percent interest offer is a massive financial relief. The Great American EV Fire Sale Is About to Begin Ford wants to lure cash-strapped buyers for gas-powered F-150s and Broncos. But there's a second, more urgent deadline that may be fueling this fire sale: the EV tax cliff. The hugely popular $7,500 federal tax credit for new electric vehicles is set to expire permanently on September 30. After that date, the single biggest government incentive for buying an EV vanishes overnight. This creates a massive sense of urgency for automakers like Ford to sell their current inventory of electric vehicles, like the Mustang Mach-E and F-150 Lightning, before they effectively become $7,500 more expensive to the consumer on October 1. While Ford celebrated strong overall Q2 sales, a closer look at industry data reveals a telling weakness: sales of its fully electric models have been declining. The company's growth is being propped up by gas and hybrid trucks, not the EVs that are about to lose their biggest selling point. Latest Sales Data Reveal Clear Winners And Losers in a Messy EV Market By extending its 'Ford Power Promise' and rolling it into this new zero percent financing deal, Ford is essentially sounding an alarm bell. The company is telling potential EV buyers that this is their last, best chance to get a deal before the market fundamentally changes. It's an aggressive attempt to clear out EV inventory and lock in sales from anxious consumers before a challenging economic climate and the end of government subsidies create a perfect storm for the auto industry.
Miami Herald
5 days ago
- Automotive
- Miami Herald
Ford Ends Employee Pricing But Launches Aggressive New Incentives for July
As Americans braced for the worst-case scenario in light of President Trump's 25% tariffs on foreign auto imports, Ford announced a new promotional campaign called "From America, For America" aimed at alleviating some of the fears that would have kept once-eager car buyers from purchasing new cars. While other automakers like Hyundai, Genesis, and Nissan sent letters to dealers and/or launched programs that promised their dealers and customers that their vehicles' MSRPs would not increase until June, Ford did something slightly different. The Dearborn-based automaker not only bolstered its homegrown, "made-in-America" image by reaffirming its manufacturing roots, but also introduced an employee pricing program that proved to be popular with its buyers. Following three months of employee pricing discounts, Ford is entering the third quarter and the second half of 2025 with a bang, as it introduces a new pricing scheme to attract value-conscious buyers to the beacon of the Blue Oval. In an announcement on July 8, the automaker said that in place of the employee pricing program, it will follow up by offering no-interest financing for 48 months, with no money down and no payments required for the first 90 days on most Ford and Lincoln cars. In a blog post on Ford's website, Rob Kaffl, Ford's director of U.S. sales and dealer relations, said that the company came up with the program after hearing from its dealers that "more customers could benefit if we could reduce the upfront, out-of-pocket expense to buy or lease a vehicle," adding that other everyday expenses are disincentivizing buyers from a new set of wheels. "Many families have seen their savings go toward higher mortgage rates and summer travel costs," he said. "They want a new vehicle but also want options that allow them to forgo an upfront down payment." The "0-0-0 summer sales event," as Ford calls it, begins on July 8 and follows a very successful sales program for the automaker. According to newly released Ford sales data, the employee pricing campaign has successfully gotten more people into new vehicles. Year-over-year sales of Ford and Lincoln vehicles shot up by 14% in Q2 2025, while their market share jumped by 1.8 percentage points. In a statement on July 1, Ford said sales in the second quarter were bolstered by strong pickup and hybrid sales, even as EV sales took a 31% dip. According to the automaker, Q2 2025 was the best second quarter for the ever-popular F-series truck since 2019, while its smaller brother, the Maverick, saw its best sales quarter since its 2021 debut. "We blew the doors off the overall industry with our second-quarter sales," Andrew Frick, president of Ford Blue and Model e, said in a statement. "Customers continue appreciating our broad powertrain choices [...] and our Ford Motor Company: From America, For America commitment." It should be said that the fine print does contain some potential deal-breaking caveats that could drive some buyers away from taking potential purchasing actions. They include the fact that the Triple Zero deal is excluded from 2024 model year Ford Raptor vehicles, Maverick, Ranger, non-ICE versions of the Transit, non-XL Super Duty pickups, F-150 Lightning, and Mustang Mach-E. Additionally, the Triple Zero deal is not eligible to be used on 2025 model year Ford Raptor vehicles, Maverick, Ranger, Transit, Super Duty, and popular cars, including the Bronco Sport, Bronco, Expedition, and the Lincoln Navigator. Not only does Ford state that buyers are responsible for tax, title, license, and dealer fees, but they also mention that "Not all buyers will qualify" for the advertised Triple Zero deal. This is important to note, as data from Edmunds states that 0% finance deals are incredibly rare, accounting for just 0.9% of new-vehicle loans in Q2 2025, the lowest share Edmunds recorded since 2004, and down from 1% in Q1 2025 and 2.9% in Q2 2024. However, despite this, Ford's action shows that it is willing to work to make its vehicles more accessible to buyers, as affordability will become more of a consideration going into the second half of the year. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
04-04-2025
- Automotive
- Yahoo
Ford tries to ease tariff pain with a new offer: Employee prices for everyone
President Donald Trump's 25% tariffs on auto imports to the U.S. went into effect at 12:01 a.m. EDT on Thursday. Hours later, Ford Motor Company responded by announcing a new incentive for would-be car buyers: employee pricing for customers. "We understand that these are uncertain times for many Americans,' wrote Rob Kaffl, Ford's director of U.S. sales and dealer relations, in a company blog post. The post did not disclose the value of the employee discount Ford is making available to customers. A company spokesperson told Fortune by email that the vehicle price is below the dealer invoice price, and "consumers can save thousands depending on the vehicle." The promotion is through June 2. Eligible cars include a range of 2024 and 2025 gas, hybrid, plug-in hybrid, and diesel Ford and Lincoln vehicles. But it excludes Raptors, specialty Mustang and Bronco vehicles, the 2025 Expedition and Navigator SUVs and Super Duty trucks. For potential electric retail customers, the employee pricing is offered on top of the Ford Power Promise, a customer support program for EV owners, further extended through June 30. Ford CEO Jim Farley said during the company's fourth-quarter earnings call in February that hefty import duties would cost the U.S. auto industry billions of dollars in added profit headwinds. The biggest winners from the tariffs, Farley suggested, won't be domestic automakers but Asian rivals that would face little additional impact. The new tariffs are estimated to raise the average cost of a car imported from another country by thousands of dollars. In addition, repairs for cars that currently use foreign-made parts are expected to cost more money. The Trump administration expects tariffs to lead to domestic manufacturing, and raise $100 billion in revenue annually. However, some experts stress the strain tariffs will place on the auto industry and the consumer. 'With 25% increases in the cost of parts, inflation would surge in maintenance and repair and insurance, which vehicle owners are already struggling to handle,' Jonathan Smoke, Cox Automotive's chief economist said in a statement. In an industry note on Wednesday, Wedbush Securities analysts said if the 25% tariff on autos and auto parts from outside the U.S. stay in place, it will change the paradigm for the U.S. auto industry for years to come. 'We believe the price impacts from this tariff announcement could result in demand destruction of 15%-20% in 2025 for new auto purchases alone based on our estimates,' according to the analysts. Ford shares were down about 4% as of mid-morning on Thursday. This story was originally featured on Sign in to access your portfolio
