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Ford’s Stock Performance and Strategy Shift
Ford’s stock (NYSE: F) has increased by 31% this year as of October 2023, even amid uncertainties regarding U.S. auto tariffs and changes in electric vehicle (EV) support. Ford is shifting its focus to cost-efficient, affordable EVs, aiming for a starting price of around $30,000 with the launch of its Universal EV Platform (UEV) expected in 2027.
Impact of Tariff Policies
Recent U.S. tariff policies have raised import duties significantly, with a 25% tariff on passenger vehicles and light trucks introduced earlier this year. While this has increased manufacturing costs, Ford has benefited from favorable tariff treatment due to its large U.S. manufacturing base, allowing it to offset some costs linked to imported auto parts. In Q3, Ford reported a net EBIT impact of approximately $700 million related to tariffs.
Financial Adjustments
Ford’s Model e segment reported losses of $3.6 billion over the past nine months as the market for EVs did not develop as anticipated. The company is now focusing on expanding its hybrid offerings and enhancing commercial vehicle sales, which may incorporate advanced software and services to improve fleet management.
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