Tariffs- how do they affect Broncos? Not political please

[UncleBrad]

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%.

No, the 2.3L engine in my 2024 Big Bend was assembled in Cleveland Engine Plant in Ohio (27-August-2024). I'd bet some (or even most) of the parts came from Mexico though. Also, I'm hearing that CURRENTLY the scope of the tariffs does not extend to foreign-made parts and subassemblies.

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[vrtical]

I forget the source, but I read somewhere yesterday that a recession is projected at about a 50% chance.

its up to 60% the sky is falling. (JPM)

 

[BroncoT]

I forget the source, but I read somewhere yesterday that a recession is projected at about a 50% chance.

JPM moved it to 60% yesterday, most expect another move up after today.

 

[Brian_B]

Straight from the White House:

The 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.

https://www.whitehouse.gov/fact-she...-and-automobile-parts-into-the-united-states/

 

[BearPatrol]

I'm sure this all makes plenty of sense if you're on ketamine.

 

[userdude]

I'm sure this all makes plenty of sense if you're on ketamine.

 

[JBlanco]

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

Pricing strategy, for the sake of argument let's say that the Bronco is 100% made in the US with 100% US sourced materials but the Wrangler isn't so the Wrangler's new base MSRP is $50k. Ford can increase their price to $49,999 and still be able to compete in the market. Ford's increase won't be related to tariffs imposed to them, but the price will still increase. See how McDonalds increased their prices without any real reason for it, planned corporate greed basically.

 

[JBlanco]

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.

Funny how Mabett is the most popular aftermarket seller in this forum... (nothing wrong with the seller, I have a few of his products, but we all know they are not made in the USA).

 

[stampede1]

Pricing strategy, for the sake of argument let's say that the Bronco is 100% made in the US with 100% US sourced materials but the Wrangler isn't so the Wrangler's new base MSRP is $50k. Ford can increase their price to $49,999 and still be able to compete in the market. Ford's increase won't be related to tariffs imposed to them, but the price will still increase. See how McDonalds increased their prices without any real reason for it, planned corporate greed basically.

That makes sense-you made me a believer.

 

[Roger123]

It's also a way for Ford to try to prevent any of its dealers from slapping on "tariff fees" or other ADM, which would be terrible publicity for Ford. They are trying to project normalcy and keep people buying, at a time when lots of people are hunkering down and delaying large purchases due to all the uncertainty. We'll see how it works over time, but it strikes me as a smart move on Ford's part.

Excellent points.

 

[Snacktime]

Funny how Mabett is the most popular aftermarket seller in this forum... (nothing wrong with the seller, I have a few of his products, but we all know they are not made in the USA).

Want American made and we pay Chinese prices!

 

[JBlanco]

Want American made and we pay Chinese prices!

I used to call this the Walmart effect, people here have been conditioned to equate wealth to owning a ton of useless low quality shit, and the buying of something for barely anything, making sellers like Temu, Sheen, Aliexpress, etc. so rich.

 

[dgorsett]

Pricing strategy, for the sake of argument let's say that the Bronco is 100% made in the US with 100% US sourced materials but the Wrangler isn't so the Wrangler's new base MSRP is $50k. Ford can increase their price to $49,999 and still be able to compete in the market. Ford's increase won't be related to tariffs imposed to them, but the price will still increase. See how McDonalds increased their prices without any real reason for it, planned corporate greed basically.

All true, but I wouldn't call it greed, they'd be foolish to do anything else. "Yeah, I think I'll leave $10K on the table 'cause I'm a kinder gentler corporation."

 

[Lowcountry Bronco]

I'd say their definition of made is actually where it's assembled.

 

[jtgensler]

This graph is more about where the cars are "made", not where materials are sourced

ok, so Tesla looks better because it's significantly smaller than all the others & only makes what, 3 models?

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