Ford Motor(US:F) The Motley Foolยท2025-10-09 08:05Core Viewpoint - Ford Motor Company's stock has experienced significant volatility in 2025, initially declining due to concerns over tariffs and the economy, but rebounding to near its 52-week high as of late summer [1] Sales Performance - Ford's marketing strategy, emphasizing its American brand identity, has led to impressive sales figures, with second-quarter vehicle sales up 14.2% compared to 2024 [4] - In the third quarter, Ford's vehicle sales increased by 8.2% year over year in the U.S., outperforming competitors General Motors (8% growth) and Stellantis (6% growth) [4] Economic Concerns - Despite strong sales, there are signs of economic distress, including a significant deceleration in vehicle sales growth in the third quarter and a sharp decline in heavy-duty truck sales since June [5][6] - Auto loan delinquency rates have reached their highest levels since the pandemic, indicating potential consumer reluctance to purchase new vehicles [6] Tariff Implications - President Trump's consideration of a tariff relief deal for automakers assembling vehicles in the U.S. could significantly benefit Ford, which estimates tariffs could cost it around $2 billion this year [7] - Management has projected EBIT (earnings before interest and taxes) of $6.5 billion to $7.5 billion in 2025, suggesting that alleviating tariff impacts would greatly enhance Ford's financial performance [8] Investment Considerations - The potential for tariff relief could provide upside for Ford's stock, but uncertainty remains regarding the timing and effectiveness of such measures [10] - Historically, investing in Ford during economic downturns has been advantageous, but current economic indicators suggest a downturn may be approaching, making it less favorable for immediate investment [11] - The automotive industry is highly competitive, and Ford has historically underperformed the S&P 500, suggesting that patience may be prudent while seeking better investment opportunities [12]