**Louisville**: Ford CEO Jim Farley welcomed Trump’s tariff cuts but called for further relief on parts and export credits, urging rivals to match Ford’s 80% US vehicle production to unlock 15 new assembly plants and drive growth in the American auto industry.
Ford Motor Company CEO Jim Farley made a significant statement on Wednesday regarding the impact of recent actions taken by President Donald Trump to reduce auto tariffs. Speaking during an event at the Kentucky Truck Plant in Louisville, Farley expressed optimism that these moves would alleviate financial pressures on automakers, suppliers, and consumers. However, he also noted that the industry requires additional support to ensure continued growth and health.
Farley specifically highlighted the need for further relief from tariffs on vehicle parts and suggested that offering credits on duties for exports from the United States should be a priority moving forward. “We are not there yet,” he said, indicating that more work remains to be done to support the auto industry.
During his remarks, Farley underscored Ford’s commitment to domestic manufacturing, asserting that the company produces approximately 80% of the vehicles it sells in the United States within the country itself. He challenged competitors such as General Motors and Stellantis to elevate their domestic production levels, suggesting that if they matched Ford’s output, it could result in the establishment of an additional 15 assembly plants across the United States. “We must keep working until those 15 new assembly plants are built in our country by our competitors,” he claimed.
Earlier this week, Trump took steps to prevent the stacking of 25% duties on vehicles and certain parts in conjunction with existing tariffs on steel and aluminium. Vehicles and parts that comply with the U.S.-Mexico-Canada Agreement (USMCA) signed in 2020 are already exempt from tariffs on imports from Canada and Mexico. Furthermore, Trump signed a proclamation allowing U.S. automakers to partially offset duties on auto parts for a two-year period.
Farley also provided specific details about Ford’s domestic sourcing, noting that the Michigan-built Ford Ranger contains 46% U.S. and Canadian content, while the Mexico-built Mustang Mach-E boasts a North American content rate of 91%, with 78% sourced from Mexico. Under the changes to tariffs, a vehicle manufactured in the United States with at least 85% U.S. and USMCA content would be exempt from any duties.
The 2025 Ford Expedition, which is produced at the Kentucky Truck Plant, includes 42% of its content from the United States and Canada, alongside 22% from Mexico, summing to 64% sourced from North American countries. Over 360 suppliers across 30 states contributed to the new model. When queried about the influence of tariffs on sourcing decisions, Adrian Aguirre, chief program engineer for the Expedition, emphasised the importance of maintaining stability in quality during the vehicle’s development and launch.
To support consumers, Ford announced the extension of its employee discount pricing initiative, dubbed “From America, For America,” through the upcoming July 4 weekend. The new Expedition, starting at a price of $62,000, is exempt from this pricing program. Farley reported a double-digit sales increase in April and indicated that official U.S. delivery figures would be released shortly.
Reflecting on Ford’s historical cost disadvantages related to its high domestic sourcing, Farley remarked, “For many years, Ford was at a huge disadvantage for our costs, with 80% sourced in the U.S., and that was a big issue for the company.” He emphasised the company’s commitment to reminding consumers about the origins of their products.
Looking ahead, Farley indicated that any potential price increases after the holiday weekend would depend on how Ford’s competitors respond—whether they absorb the costs or pass them onto consumers.
Ford’s investment in the Kentucky Truck Plant amounted to $500 million for the launch of the new Expedition. This investment comes on the heels of a 38% drop in Expedition sales during the first three months of 2025, though deliveries experienced a growth of 6.3% in 2024. The fifth-generation Expedition aims to attract younger consumers and families with new features including a split-gate trunk, a sliding console, updated cockpit software, and enhanced off-road capabilities in a new Tremor trim.
The Kentucky Truck Plant stands as one of Ford’s largest facilities, also yielding the Lincoln Navigator SUV and Super Duty pickups and employing approximately 9,000 individuals, encompassing about 8,200 hourly workers. During the 2023 United Auto Workers’ strike, it was revealed that the plant contributes roughly one-sixth of Ford’s annual revenue, generating about $25 billion each year. Farley further noted that the plant’s revenue surpasses that of Southwest Airlines Co.
Source: Noah Wire Services
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