Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Ford calls rising steel, aluminum prices significant headwind

Auto News - Published on Fri, 10 Aug 2018

Image Source: Bloomberg.com
Bloomberg reported that, rising steel and aluminum prices, driven up by President Donald Trump’s tariffs on those commodities, are a substantial drag on Ford Motor Co.’s business, though a top executive said the company doesn’t plan to pass higher costs on to consumers.

Mr Jim Farley, Ford’s president of global markets after a factory ceremony near Detroit to commemorate building the 10 millionth Mustang muscle car said that “The escalation of steel and aluminum prices is really significant. It’s a significant headwind for us. It’s something that puts pressure on our own costs.”

Ford began the year by warning that rising costs for raw materials like steel and aluminum, coupled with unfavorable exchange rates, would add USD 1.6 billion to its costs this year. After President Trump levied tariffs on foreign steel and aluminum, General Motors Co. joined the fray in blaming its forecast for lower profit in part on expensive commodities. Last month, Ford lowered its profit projection for this year to further below last year’s result.

Mr Farley said the company isn’t passing along the higher costs to its customers in the form of higher prices for its cars and trucks.

Mr Farley told reporters that “This is something that we have to deal with and absorb as a company. It’s not something we’ll be passing on.”



Image
https://www.bloomberg.com/news/articles/2018-08-08/ford-calls-rising-steel-aluminum-prices-significant-headwind

Source :

Posted By : Joykumar Irom on Fri, 10 Aug 2018
Related News from Auto segment