Ford CEO extends ‘employee pricing.’ But price hikes could come this summer

Ford CEO Jim Farley announced Wednesday on CNN that the automaker is extending its “employee pricing” offer to car buyers for another month, through July 4, to encourage sales to consumers nervous about rising prices because of new tariffs on imported cars and auto parts.

Ford CEO Jim Farley announced Wednesday on CNN that the automaker is extending its “employee pricing” offer to car buyers for another month, through July 4, to encourage sales to consumers nervous about rising prices because of new tariffs on imported cars and auto parts. Farley spoke with CNN’s Erin Burnett to talk about auto tariffs, the US economy and the economic impact of automaking at US plants. But Farley said he can’t say that Ford prices won’t go up up after the end of the employee pricing offer. He said part of it will be determined by what competitors do with their pricing, since Ford makes more of its vehicles in United States than other automakers. “We want to keep our prices competitive and low,” he said. “We think this is an opportunity for Ford. We have a different footprint, a different exposure for tariffs.” Auto tariffs, including a 25% tax on all imported cars, have shaken up the global industry. The import taxes will increase the cost for manufacturers, which in turn is expected to raise the price buyers pay for cars later in the year. About 46% of US car purchases last year were for cars or trucks made in a foreign country, according to S&P Global Mobility. Mexico was the largest source, shipping 2.5 million cars to US dealerships. So far, car buyers have been able to purchase imported vehicles shipped here before the tariffs took effect, but those inventories will soon start to run low.