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Ford ((and)) On Monday, she decided to suspend her guidelines for this year due to uncertainty about the definitions.
The American auto manufacturer praised President Donald Trump’s tariff, saying it “supports the administration’s goal to enhance the US economy through manufacturing cultivation.” However, she also said that she expects to eat 1.5 billion dollars in customs tariffs of Ebitda this year.
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Ford expected profits before interest, taxes, destruction and consumption between $ 7 billion and $ 8.5 billion for this year.
Blue OVAL was not the only Detroit Motor Company to hang its directives. GM competitor Do the same thing Previous week.
Related: Ford makes a radical decision in the face of the accumulated tariff
General Motors has also suspended the $ 4 billion re -purchase plan. “Since the original guidance did not include the influence of definitions, the previous directives cannot be relied upon,” He said Paul Jacobson, the company’s financial manager.
General Motors was expected to earn between $ 11 and $ 12 per share this year.
With a lot of chaos, there are a few things that Ford can depend on, but there is one thing that the company does not worry about is the willingness of its potential customers to be flexible when buying their cars.
Photo and colon source; Morris & Sol; Bloomberg via Getty Images
Ford expects buyers to accept the terms of the longer loan
The most common terms for automatic loans are 24, 36, 48, 60, 78 and 84 months. The idea is that the longer the loan period, the lower your monthly payments, but the more the money you pay over the life of the loan.
Analysts in calling Ford’s profits asked this week about the flexibility of Ford customers if the company needed to raise prices soon. But the company’s executives do not seem very concerned.
“We see customers do what they can to provide a new vehicle. I mean, we have seen 84 -month financing increases as a share of our offers on the financing side. Natural levels are within the limits of industry, but customers do what they need to set to pay their payments.”
Related: The American auto company takes strict measures in response to definitions
The company is witnessing an increase in long -term financing requests rather than a decrease in the request. But again, the company surrounds, saying that this may change if the economy is getting worse in the second half of the year.
Americans finance their car purchases
Thanks to the salaries that have not increased to match inflation over the past five decades, the only way that many Americans can have a car is to finance it.
Less than 20 % of the purchase of new cars were cash transactions Autotrader. Therefore, more than 80 % of the new car buyers are funding their purchases.
The cost of a new car in the United States is about $ 48,000. Although the prices are still less than 2022 at $ 49.507, they were heading up.
Since the average salary in the United States is $ 66,622, according to the latest social security DataIt is logical that 40 % of Americans, or about 134 million people carry car debt.
More car news:
- General Motors presented a sudden update to business
- Ford reports sudden news amid Tesla’s disorder
- Apple creates a smart way to stop car thieves
The US Motors’ debts rose by $ 108 billion to $ 1.51 trillion in 2023, according to Experian. The average car loan balance rose to 23,792 dollars at the end of 2023.
At the present time, Ford expects that the new car buyers will maintain demand in the face of high prices by agreeing to the longest loan terms.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
