Ford to raise car prices this summer

DETROIT: Ford Motor Co is preparing to raise prices on cars rolling off assembly lines starting next month if President Donald Trump doesn't deliver on the tariff relief he's hinted at for automakers.

Without a major change in Trump's tariff policies, "we anticipate the need to make vehicle pricing adjustments in the future, which is expected to happen with May production," Andrew Frick, president of Ford's gas-fueled and electric car units, said Wednesday in a memo to dealers.

Ford vehicles built in May won't arrive in US showrooms until late June or early July, after the conclusion of carmaker's current employee-pricing-for-everyone promotion, the company said.

The automaker also said it won't change the price of vehicles in inventory now.

"The tariff situation is dynamic and we continue to evaluate the potential impact of tariff actions," Ford said in a statement.

The warning is the most clear sign yet that automakers are likely to pass on at least some of the higher costs imposed by Trump's 25% tariffs on imported automobiles.

It comes comes two days after Trump said he was contemplating a temporary reprieve to give car companies more time to move production to the US.

Ford is still working to understand the president's policies, but expects "certain tariffs are likely to remain in place for at least some time," Frick said in the memo, which Bloomberg confirmed after it was reported earlier by Automotive News.

Trump put a 25% tariff on imported cars April 3 and is due to apply an equal levy on certain foreign car parts no later than May 3.

Detroit's automakers have been furiously lobbying the White House for relief to spare components from the levies, which they contend would have dire financial consequences on the companies.

Ford builds 80% of the autos it sells in America in US factories.

But it manufactures three of its most-affordable models in Mexico: the electric Mustang Mach-E, the Maverick small pickup truck and the Bronco Sport compact sport-utility vehicle.