Ford rolls out discounts — and Volvo, Mercedes eye upping US production as Trump’s auto tariffs rev up

Ford rolled out across-the-board discounts on multiple models on Thursday to keep shoppers coming into the showroom, hours after President Trump’s 25% tariff on auto imports kicked in.

The Detroit car giant plans to lean on its healthy inventory to offer customers thousands of dollars off as competitors hike prices to absorb tariff costs.

Trump’s 25% levy on foreign-made cars took effect after midnight on Thursday. Starting May 3, the tax will also apply to imported car parts, which can add to costs for US manufacturers. 

The most impacted foreign-made cars could jump in price by as much as $20,000, while the least affected models — those assembled in the US with largely American-made parts — could cost an additional $2,500 to $5,000, according to a recent analysis by the Anderson Economic Group.

Ford’s “From America, For America” deal — running through June 3 — will offer all customers the same discount given to employees.

The exact deal varies from vehicle to vehicle, but it “could mean savings of thousands of dollars on a vehicle,” a Ford spokesperson told The Post.

Discounts can be stacked on top of other dealer promotions, and are eligible on 2024 and 2025 gas, hybrid, plug-in hybrid and diesel Ford and Lincoln vehicles. 

The discount does not include Ford’s high-end Raptors, specialty Mustang and Bronco vehicles, the 2025 Expedition and Navigator SUVs and its Super Duty trucks.

“In times like these, talk is cheap. At Ford, we believe in action,” the automaker said in a press release.

Foreign automakers were also quick to discuss potential supply chain shifts to help avoid the hefty tariffs.

Volvo said it was looking to make more cars and move production of another vehicle model to its South Carolina factory — its first US facility, which was built in 2018.

“We will have to increase the number of cars we build in the US, and surely move another model to that factory,” CEO Håkan Samuelsson told Bloomberg. 

Volvo “will have to look closely” at what other model it can add to US production lines, he added.

During Trump’s first term, Volvo scrapped plans to ship sedans built at its new South Carolina plant to China due to tariffs imposed by both nations.

But the automaker seems to be taking a different approach this time around.

“The global car industry, as well as Volvo Cars, is facing increased geopolitical complexity and regionalisation. This makes Volvo Cars’ long-held strategy of building where we sell even more important,” a Volvo spokesperson told The Post.

“Right now, we are ramping up our production of the EX90 in the US to grow volumes and thereby also reduce costs,” they added.

Volvo needs to “learn from the Chinese how to localize,” Samuelsson said during an annual shareholder meeting.

Samuelsson – who retook the helm at Volvo this month from his short-lived successor Jim Rowan – said the company will need to cut production costs to protect its profits.

Volvo didn’t immediately respond to The Post’s request for comment.

Mercedes, meanwhile, signaled it’s weighing whether to shift some manufacturing over to the US to avoid additional costs from the tariffs.

“We’re still assessing the impacts of these tariffs,” Jörg Burzer, the automaker’s production chief, said during a company event in Germany on Thursday, according to Bloomberg. 

“We have made some plans, but flexibility is absolutely key,” he added.

Mercedes didn’t immediately respond to The Post’s request for comment.

Shares in Ford, Volvo and Mercedes fell on Thursday by 4.7%, 4.3% and 2.5%, respectively.

Ford’s deal is reminiscent of General Motors’ “Keep America Rolling” promotion that came soon after the terrorist attacks on September 11, 2001, and helped boost US vehicle sales during an otherwise bleak economy, Bloomberg earlier reported.

Ford may also be trying to clear out its inventory. As of the end of March, it had 74 days supply of vehicles on lots, compared to General Motors’ 50-day supply, according to JP Morgan Research.