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Trump's tariffs have already cost Ford $1B; now it's planning layoffs

By NBC News

Ironically, Ford may have to cut production of some models, potentially reducing U.S. jobs, as a result of China's tit-for-tat tariffsRead full story

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  • I’ve paid close attention to Ford (and all American automakers, really) after the financial crisis and the accompanying industry bailouts. When looking at the article on it’s face and avoiding a political lean, in my opinion, one only sees the tariffs as an unwelcome accelerant in Ford’s ongoing battle

    I’ve paid close attention to Ford (and all American automakers, really) after the financial crisis and the accompanying industry bailouts. When looking at the article on it’s face and avoiding a political lean, in my opinion, one only sees the tariffs as an unwelcome accelerant in Ford’s ongoing battle to remain relevant and profitable in a fiercely competitive industry. When the numbers already aren’t great, a bunch of tariffs by way of a political pissing match probably don’t do anyone any favors. Ford has been and probably will continue to struggle with their domestic and global offerings as they have relied much to long on service vehicles, light-duty trucks, and the Mustang to fuel revenue.

    Other automakers have been running circles around them in regards to segment expansion, appeal to younger buyers, and production. In an industry dominated by loyalty what has Ford done to attract non-repeat buyers? The tariffs are forcing Ford’s hand and they are having to address concerns sooner rather than later to stay profitable right now. No tariffs still doesn’t fix what’s wrong - no tariffs just allows things to unfold more slowly. Ford must make some tough decisions as to whether they will double-down on their bread-n-butter reaffirming their persona as an “American” automaker or if the will chase their dreams of being a global “mobility company”. I’m not sure they are cut out for the latter, but even if they were - tariffs, revenue issues, inefficient organization, etc, and “what have you done for me lately” shareholders won’t make it quick or easy.

    Maybe being the best dang F-150 and Mustang company they can be is the best move? The article seems to peg Ford as an underdog otherwise.

  • Perhaps if he understood supply chains then maybe these people would still have jobs

  • Over the past 20 years the US and Europe have built a dependence on Foreign supply chains of which China is the biggest. Those supply chains are all being called into question now but for multiple reasons. Jobs is the first and least interesting with record low US unemployment, National security is the

    Over the past 20 years the US and Europe have built a dependence on Foreign supply chains of which China is the biggest. Those supply chains are all being called into question now but for multiple reasons. Jobs is the first and least interesting with record low US unemployment, National security is the second ( senate banned ATT/ Huawei) , environmental impact is the third ( eg cobalt mining in the DRC) and social responsibility is the fourth. ( child labour + minimum wage ). The US will pull most of its supply chains for one of the those for reasons in time. The Chinese will retaliate and it has little to do with tariffs. #thisgetsugly

  • This has nothing to do with tariffs and all to do with fencing off the entrants like Tesla. That said, tariffs are accelerating the downfall. China is becoming the excuse for everything it seems. "No sir, we are going under because China made us do it!" :P

  • This headline is somewhat sensational since Ford has been underperforming for a few quarters and the company has already been plan ing layoffs. Therefore how could only the tariffs be the result of the layoffs? There is more than meets the eye.

  • Tariffs cut into profit margins for companies and their suppliers by imposing extra costs on their industry. It may cause some industries to try to move more of their supply chain back but that also cost and takes time to develop. This isn’t good in the short term as it cuts immediate demand as prices

    Tariffs cut into profit margins for companies and their suppliers by imposing extra costs on their industry. It may cause some industries to try to move more of their supply chain back but that also cost and takes time to develop. This isn’t good in the short term as it cuts immediate demand as prices rise and companies have to find ways to keep shareholder value and it’s almost always workers and consumers that get hit first.

  • I believe it’s other factors then tariffs. Ford is going to stop manufacturing cars all together. Look at the Chevy Cruze. They are not producing as many as before. Two shifts had to be laid off. People are not buying cars as much as SUV’s and crossovers. The demand for cars is not there. Maybe it’s

    I believe it’s other factors then tariffs. Ford is going to stop manufacturing cars all together. Look at the Chevy Cruze. They are not producing as many as before. Two shifts had to be laid off. People are not buying cars as much as SUV’s and crossovers. The demand for cars is not there. Maybe it’s not tariffs, but it’s easier to blame Trumps tariffs. Wasn’t it the auto industry that told Trump to mind his real estate and they’ll mind their automobile. The blame is on them for moving out of the country and causing American workers to be unemployed.

  • Click bait title... Ford’s lack of profits and deteriorating market share goes beyond tariffs.

  • The slow motion disaster continues with more tariffs on the horizon. The Chinese must be confused about why Trump is so angry. They gave him a nice parade and didn't even serve fish heads!

  • Why sound so surprised! We all knew that One Night of Celebration and Hailing, would result in a decade of suffering and misery. Why Decade? Because the proponents behind the imposing of the Tariffs would continue to be in denial of its effects till the damages are permanent.

    It is important to learn

    Why sound so surprised! We all knew that One Night of Celebration and Hailing, would result in a decade of suffering and misery. Why Decade? Because the proponents behind the imposing of the Tariffs would continue to be in denial of its effects till the damages are permanent.

    It is important to learn from history, and not follow mistakes of our predecessors from the dark ages.

  • Ford wants to provide China with jobs on the backs of Americans. They deserve to lose money

  • While the tariffs indeed have made Ford incur additional $1B cost, but they are irrelevant to its lay-off decision, needless to say its struggle in Chinese market that has nothing to do with the trade war.

  • Nonsense. They were cutting models anyway. It’s a middle to long term effort regardless.

    What drives me nuts is Libs not caring how lopsided our trade is with China.

    What Trump is doing should have been done a long time ago. They were killing us with currency manipulation and unbalanced access to markets.

  • Nicolas Finegold, and the rest. The reason things are the way they are in manufacturing, with most being produced off shore is directly tied to how US residents and citizens shop. Foriegn assembly and parts, with foreign cheap labour became a neccesity for companies to be able to compete due to consumers

    Nicolas Finegold, and the rest. The reason things are the way they are in manufacturing, with most being produced off shore is directly tied to how US residents and citizens shop. Foriegn assembly and parts, with foreign cheap labour became a neccesity for companies to be able to compete due to consumers not supporting their domestic industries in a fashion that kept US jobs. Before someone disagrees, they should answer this, when was the last time you bought anything online (IE Amazon) or shopped for the absolute lowest price which brought you to Walmart? This is why manufacturing has left the states. Raising tariffs will not bring this back until consumers begin to shop ethically, and I am not optimistic that will happen anytime soon.

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