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Metal Tariffs Have Cost Ford $1Bil


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It hasn't cost Ford anything. You know they will just jack up the prices to offset this.

 

If the tariff affected all the mfrs equally then yes, they would all just raise prices. This is the same reason you can't tax a business - a tax is just the cost of doing business and it always gets passed on to the consumer. But if Ford is getting hit harder than GM e.g. then they'll have to eat the cost difference - or at least most of it - unless they're willing to lose a lot of sales volume.

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From the way I read it, Ford gets most steel from US. US steel companies have raised their prices too, to take advantage of the tarriff offset. I am sure they are still cheaper than foreign steel but prices have gone up. I think since Wall Street is most critical of Ford, they air their dirty laundry as to not to surprise investors. I bet other car companies are hurting to. We'll find out soon enough.

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My buddy just bought a new Kubota subcompact tractor. He wasn't going to just yet. The dealer said due to rising cost of steel, expect a $2-3k dollar jump in the cost of a small tractor. Kubota uses a high strength steel that is only available out of Canada at the moment. I'm sure JD will be in the same boat as a lot of their small tractors are made in Georgia the same as Kubota.

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From the way I read it, Ford gets most steel from US. US steel companies have raised their prices too, to take advantage of the tarriff offset. I am sure they are still cheaper than foreign steel but prices have gone up. I think since Wall Street is most critical of Ford, they air their dirty laundry as to not to surprise investors. I bet other car companies are hurting to. We'll find out soon enough.

It looks to be a projection of anticipated costs for 2018-2019 from Hackett,

best to get this out there before Ford changes it's profit forecasts...

 

If Hacket's plans weren't in tatters before, they are now, it's just another

external headwind that Ford could do without....

Edited by jpd80
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