Ford Motor Company reported a slight decline in its first-quarter U.S. vehicle sales as the industry prepares for the impacts of President Donald Trump’s auto tariffs set to take effect this week. Ford’s sales dropped by 1.3% compared to the same period last year, primarily due to the discontinuation of its Ford Edge SUV, which was manufactured in Canada. This decision was unrelated to tariffs. Sales of the vehicle fell by 94% as dealers sell off remaining inventory.
Despite the overall decline, Ford’s retail sales, excluding fleet business, increased by 5% year-over-year, driven by a 19% rise in March. The sales results come ahead of Trump’s tariffs, including a 25% levy on imported vehicles starting Thursday. The industry awaits further announcements of potential tariffs that could affect automakers.
J.D. Power forecasted strong industry sales for March as consumers rushed to dealerships to avoid tariff-related price increases. “The 13% year-over-year retail sales increase is particularly strong, enabled by consumers accelerating purchases to avoid potential tariff-related price increases,” said Thomas King of J.D. Power. While the tariff situation remains uncertain, it is already affecting the industry.
— new from CNBC
