Following the implementation of an additional 10 percent tariff on China and 25 percent levies on imported steel and aluminum, automakers are bracing for 25 percent tariffs on goods coming from Canada and Mexico, which are currently slated to take effect on April 2nd following a couple of delays, most recently involving a 30 day reprieve for the auto industry. Some expect these new tariffs to increase the cost of products such as automobiles, but Ford has been working to mitigate their impact in that regard. Now, those efforts continue.
As Ford Authority previously reported, in addition to scrutinizing its supply chain, Ford is also in the process of stocking up on parts that comply with the current U.S.-Mexico-Canada Agreement, and it’s also taking a second look at its operations in those countries, Now, according to the Detroit Free Press, Ford leased dozens of semitrailer trucks and secured warehouses in Michigan and Ohio earlier this month, all with an eye toward bringing as many V8 powerplants as possible to the U.S. from the Essex Engine plant and Windsor Engine plant in Canada before tariffs were previously expected to take effect.
Such a move could certainly save Ford quite a lot of money, according to Unifor Local 200 John D’Agnolo, who stated that one truckload full of V8 engines could cost Ford anywhere from $70,000 to $80,000 in tariffs alone. Unifor is assisting Ford in its quest to get parts across the border as quickly as possible, given the fact that tariffs could impact jobs north of the border. “Now, just as soon as we get the engines done, we bring them over,” D’Agnolo said. “I want Ford to have as many engines as they can over the border because the company has to be successful for us to be successful, and at the end of the day, we’ll do whatever we can to support Ford Motor Co.”
At the moment, it’s unclear how these tariffs may impact retail pricing and jobs, if and when they go into effect – CFO Sherry House has stated that the automaker isn’t too terribly worried about aluminum and steel levies, since it sources most of those materials domestically, but another recent report claims that they could face increased production costs as a result. Meanwhile, most in the automotive industry have simply called for future tariffs to be a bit more predictable – a list that includes Ford Executive Chairman Bill Ford – as shifting supply chains and production to the U.S. could take years.
Comments
Targeted versus Global…guess which one work much better? If you guessed the first one…you’d be correct!
Make the engines here in the US, problem solved.
Build the engines in America
So, Unifor local 200 is actually working WITH Ford in support of both their union members and the company that writes their checks. I guess our Canadian friends don’t consider Ford Motor Company to be the Enemy. Refreshing !!
First, switching engine manufacturing from one country to an other, is not done in a couple weeks. Second, there are still parts needed for the engines that have to be imported.