Tariffs- how do they affect Broncos? Not political please

[BroncoT]

Plus all the projections are made assuming trading partners don't reduce their current tariffs on US made goods to get the US tariffs reduced/dropped on theirs. There's going to be an adjustment period an the final numbers may end up looking nothing like what's in place right now.

Open your markets to our products an you will keep access to ours.

Be aware that the tariffs shown yesterday are based on trade deficits as opposed to actual tariffs. EU weighted tariff rate is 2.7% per the WTO. Negotiation can still happen, but they don’t have the wiggle room to reduce much.

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[RagnarKon]

Very plausibly, this is the article I'm pulling from, and it's MY2025-based.
This also doesn't differentiate between the US and Canada - Canadian imports may be subject to tariffs and increased prices as well.

Well this chart was unexpectedly interesting, thanks for sharing.

I won't lie, confused.

They're saying the Explorer and Mustang engines are from the United States, while the Bronco and Ranger are from Mexico... except they're all using the same 2.3L EcoBoost engine. I also noticed they listed the 5.0L Coyote as produced in Mexico for the Mustang, while it's the United States for the F-150. Except I'm pretty confident the 5.0L Coyote is built in Canada at Essex Engine Plant just across the Detroit River.

And the weird thing is it changes year-to-year. In 2022, the 2.3L was an American engine, and every other year it was Mexican. And in 2023, the 2.7L was a Mexican engine, while every other year it was American.

So... yeah, I dunno. I wonder if it's based on origin of the components that go into the engine rather than where the engine is actually assembled. If so, that could definitely explain it if Ford is shifting or using multiple suppliers. I'll have to go read the text of this American Automobile Labeling Act if I ever get bored, see if I can make sense of it.

 

[Ducati1098]

I wonder if it's based on origin of the components that go into the engine rather than where the engine is actually assembled. If so, that could definitely explain it if Ford is shifting or using multiple suppliers.

That sounds plausible.
I’m sure parts are probably sourced internationally, but the final assembly of the engine is Ohio.

 

[11811]

Is that just the new 2.3? My 2023 2.3 says Lima Ohio on it.

Here are pictures of a window sticker from my car and the sticker on the engine. I don't know what to believe....

 

[SeptuagenerianSasquatch]

I just got a spam email from a financial planner. With everything going on, this time I decided to open it. He had this interesting line:

"Short-term volatility is the price we pay for long-term reward or as The Shirelles put it, “Mama said there’d be days like this.”

I, for one, will "stay the course." I'd buy into this bear market--if I had extra cash. But I just wrote checks for my taxes. Groan.....At least they're done.

 

[stampede1]

Even if it was 100% built in the USA with only USA parts, the cost would go up with everything else.

That doesn’t make sense if tariffs are not a factor in parts or production. What would the cause of price increase be, specifically?

 

[TheKim]

That doesn’t make sense if tariffs are not a factor in parts or production. What would the cause of price increase be, specifically?

As of this writing, Ford doesn't make microchips. Ford doesn't make everything that goes into the vehicle.
Even if they did, the fact that everything else is going up in price, means they have to increase pay for employees, increased prices on equipment for their factories, prices on parts for the robots on the assembly line, there will be price increases. Imported steel, imported aluminum, imported circuit boards, imported engine components, imported zip ties for holding the washer fluid reservoir in place.
Everything. Everywhere.

 

[stampede1]

As of this writing, Ford doesn't make microchips. Ford doesn't make everything that goes into the vehicle.
Even if they did, the fact that everything else is going up in price, means they have to increase pay for employees, increased prices on equipment for their factories, prices on parts for the robots on the assembly line, there will be price increases. Imported steel, imported aluminum, imported circuit boards, imported engine components, imported zip ties for holding the washer fluid reservoir in place.
Everything. Everywhere.

Still makes no sense as the original assertion was there would be price increases even if tariffs did not impact parts or assembly. I get that prices always go up due to normal inflation but that’s a different issue from tariffs.

 

[GPPBronco]

It’s funny to watch all these Amazon and Wal Mart shoppers claim that “everybody wants to buy American” as if the option hasn’t already existed.

 

[KABQ]

Instead of relying on junk from overseas. Maybe their recall numbers would go down if that was the case.

Webasto makes the hard tops in Plymouth, MI. Just sayin'.

 

[JT58Bronc]

If any parts are not made in the US that will affect the vehicle price too, it's not just the final assembly plant. The metals used also if they are from overseas will affect price too. Some vehicles will be affected more than others. It will be interesting to see how the automakers apply the price increase and make it balanced across all makes and models?

On another note where it's going to hurt is buying vehcile parts to fix your vehicles. I am fortunate enough that I have the skill to repair vehicles although may not be able to afford the parts anymore. We have two older vehicles that I work on routinely- one being my 87 Chevy Squarebody. I am constantly investing in it and buying parts. Working on vehicles and restoration is one of my passions in life- probably my greatest passion. Even AC Delco parts are made in China. If it costs too much to own and buy parts for it, I may have to sell it. Same for the Bronco if I can no longer afford it. Really hurts and is depressing for me. Trying to find another passion as I approach 70 is not easy........

When you are buying parts from stores or Rock Auto- is there a way to know where it's made before you purchase? Most parts i buy are made in China......

 

[bassist]

While all Broncos are built in the United States, many of the major parts are imported. The manual transmission is made in China, and the 2.3L engine is made in Mexico.
The (first) figure I have for the "made in USA" content of the Bronco is 42%.

42% US/Canada.

 

[bassist]

Here's the '24 auto index:

https://kogod.american.edu/autoindex/2024

Bronco 2.7 is 59% domestic content and the 2.3 is 45%, so yeah, it's going to be affected.

Domestic includes Canada.

 

[bassist]

Plus all the projections are made assuming trading partners don't reduce their current tariffs on US made goods to get the US tariffs reduced/dropped on theirs. There's going to be an adjustment period an the final numbers may end up looking nothing like what's in place right now.

Open your markets to our products an you will keep access to ours.

The numbers used to arrive at our tariffs are bad math. They ignore trade in services as well as the impact of Foreign Direct Investment on FX rates.

 

[bassist]

Be aware that the tariffs shown yesterday are based on trade deficits as opposed to actual tariffs. EU weighted tariff rate is 2.7% per the WTO. Negotiation can still happen, but they don’t have the wiggle room to reduce much.

Where this will really hurt American companies is when people abroad decide they want nothing to do with American brands.

In Germany, Fords are almost viewed as domestic vehicles - this could change.

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