Long-term investing, man, it’s like playing the long game, but what if you put all your chips on the wrong horse? Ford’s been a dud lately, shares tanked 38% over ten years. It’s a head-scratcher. You think you’re better with that cash chilling in the bank. Boomers in the car biz are scrambling as EVs crash the party. Trade policies could flip the script, making the U.S. auto scene more homegrown. Ford might be onto something, or maybe not. Let’s dive deep into this chaos.
### Could tariffs be Ford’s secret sauce?
Ford is as American as apple pie, right? Well, they’re banking on that patriotic vibe. Washington slapped a 25% tax on imported cars, and Ford jumped on the “Made in America” bandwagon, big time. They’re running ads flexing their U.S. muscles and offering sweet deals on new models. Meanwhile, Volkswagen’s like, “Nah, let’s pause and slap some sticker shock on imports.” Bold move, Ford.
But wait, sustaining this strategy? Tough gig, especially if auto parts get the 25% tariff treatment too. How American is Ford, anyway?
### How American is Ford, really?
Ford played the NAFTA game, setting up shop where labor is cheaper. They say 80% of their rides are U.S. made, but they’re more global than that. The F-150? Assembled in Michigan, sure, but only 60% local parts. So, if tariffs hit parts, prices spike. Even if rivals hurt more, the pie could shrink, squeezing profits and wrecking Ford’s EV plans.
Their Mach-E is made in Mexico, which means it’s in the tariff crosshairs. Plus, their EV bits come from China. Ouch.
And Lincoln? They’ve got SUVs rolling out of China with a hefty 145% tariff. Prices might skyrocket. Lincoln’s top dog hasn’t called it quits on imports, so Ford’s likely taking a hit on those rides.
### What’s coming in the next 5 years?
Sure, Trump’s tariffs might give Ford a leg up at home, but there’s a sting. Price hikes across the board might scare off buyers, whether they’re shopping local or global. Ford’s EV ambitions are tangled up in international supply webs, which is a real pickle.
The big uncertainty: U.S. trade policy is a wild card. Planning a long-term move? Nearly impossible. If you’re bargain hunting, maybe think twice before jumping on Ford.
