Car Tariffs Aren’t Evenly Distributed, And Ford (F) is “The Least Big Loser” In The Draw

24/7 Wall St. Key Points:

• Ford (NYSE: F) is better positioned than most legacy automakers under the new 25% tariffs due to its higher U.S. production footprint, limiting exposure to import-related cost increases.
• While General Motors (NYSE: GM), Hyundai, and Stellantis face significant disruption, Ford’s domestic manufacturing and strong F-150 sales make it the least-impacted major automaker.
• Despite near-term headwinds like warranty costs and possible dividend cuts, Ford’s low stock price and improving U.S. sales suggest attractive upside potential for long-term investors.
• Ford’s future is in jeopardy, but yours doesn’t have to be. Speak with a financial advisor today to learn whether you’re ahead, or behind on your retirement dreams. It’s completely free, and only takes a minute. You can get started with this quick quiz.

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Transcript:

[00:00:04] Doug McIntyre: Lee, let’s think about the car tariffs right now. Okay. Everybody wasn’t hit the same because each of the car manufacturers, you know, the percentage of cars that they make overseas and bring in the parts coming in, the, the clear winner is Tesla, a hundred percent. Of the car and of the parts made in the United States.

[00:00:24] Doug McIntyre: If you look at the list, the people really getting hurt badly are Hyundai, Ikea, BMW, Mercedes, Stellantis, and General Motors. Right? Those companies are getting hurt. Interestingly enough, I don’t, this is sort of an accident of history, I guess. Ford is in the best shape of the legacy car companies when it comes to parts and cars manufactured in the United States.

[00:00:50] Lee Jackson: Yep.

[00:00:50] Doug McIntyre: And I think if you look at the charts right now, you’ll notice Ford is down, but it’s not down the way GM is. So if you think that there’s a long-term tariff problem right now, Ford is at a very low price. It’s virtually at, it is 52 week . Ford’s warranty problems aren’t priced in.

[00:01:11] Doug McIntyre: They, they might cut their dividend. I don’t know if that’s priced in, but I don’t know that it’s. It’s gonna cause the stock to do sell down another.

[00:01:18] Lee Jackson: No, that’s pretty, pretty cheap anyway.

[00:01:21] Doug McIntyre: Pretty cheap. Anyway, so there’s every reason to look at Ford as the least big loser of the Trump 25% tariffs.

[00:01:33] Lee Jackson: Yeah, I think you’re right. And, and you know, to some degree I think Ford has had some success. It’s interesting, my neighbor, you remember from the seventies, you remember the Maverick? It was like a smaller Vegas sized car and it went into the Detroit graveyard, but now Ford makes a small truck that’s called the Maverick.

[00:01:56] Lee Jackson: And I, and my neighbor has one, and I asked him, I said, Hey, that looks perfect, you know, perfect size and you know, it’s got a, it’s got a big enough bed that you, he puts his bike into it so he can go bike riding. And I said to him, I said, well, I don’t, I haven’t seen any. And he said, they’re sold out.

[00:02:12] Lee Jackson: They were sold. They didn’t, their production wasn’t enough. So they didn’t make any of them. So just now am I starting to see ads for the Ford Maverick and, and I see the, the new Ford Bronco all over the place. So they’re at least extending what would be their kind of legacy line of vehicles to have, you know, more that they can build and sell in the United States.

[00:02:31] Doug McIntyre: If you go back over the last six months, most months Ford sales are up year over year. So yeah, they’ve struggled now in China, but guess what? Except for the Chinese companies in Tesla who hasn’t, they don’t have a big footprint in Europe. So, you know, if the Europe market’s rocky, it hurts them somewhat.

[00:02:54] Doug McIntyre: But they have to win in the United States right now and the Yep. The tariff math helps them out with that. And as you know, yep. 38% of their sales in the United States are one vehicle. It’s the F-150. Yep. As, as long as the sales of that are brisk and they keep reasonable margins on those things, um, Ford’s in pretty good shape.

[00:03:19] Lee Jackson: Yeah. Certainly better than they were, say, six months ago or, or nine months ago. Yeah. They seem to have at least. You know, clawed their way out of it. And again, for, for our, our viewers and, and, and those who read 24/7, you know, it’s probably a stock at eight, $9 that there’s not a whole lot of risk and you can just kind of buy it, put it away and see if it doesn’t trade back to 10 or 12.

[00:03:42] Lee Jackson: ’cause if you trade the 10 or 12, that’s a 25 to, you know, 30% move. And that’s a solid move.

[00:03:47] Doug McIntyre: That’s a very solid move. Yeah. So also their deadly enemy. General Motors has a lot, a lot, a lot of its stuff made overseas.

[00:03:59] Lee Jackson: Yeah.

[00:03:59] Doug McIntyre: The General Motors right now is a distinct disadvantage to Ford. And if you’re gonna go buy a card, you wanna buy the one that’s gone up 5% or do you want to go, one that goes up has gone up 18%.

[00:04:15] Lee Jackson: Yep.

[00:04:16] Doug McIntyre: And I think that’s gonna, that’s gonna help move customers towards Ford.

[00:04:20] Lee Jackson: Yep. I agree. I agree.

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