Core Viewpoint - Ford Motor Company reported a revenue of $50.2 billion for Q2 2025, a 5% year-over-year increase, with adjusted EPS of $0.37 and adjusted EBIT of $2.1 billion, exceeding expectations of $1.91 billion [1] Group 1: Financial Performance - Ford's Q2 revenue reached $50.2 billion, marking a 5% increase compared to the previous year [1] - Adjusted EPS for the quarter was $0.37, while adjusted EBIT was $2.1 billion, surpassing the forecast of $1.91 billion [1] Group 2: Impact of Tariffs - The company faced an $800 million impact from tariffs in Q2, with an annual tariff cost projection of $2 billion, which is an upward revision from previous estimates [1] - The U.S. tariffs on imported cars and steel/aluminum are expected to have a more significant negative impact on Ford than previously anticipated [1] Group 3: Competitive Landscape - Ford's competitive advantage in U.S. production is being eroded due to new trade agreements that lower auto import tariffs from 25% to 15%, increasing competition in the global market [1] - The company relies heavily on domestic production, with 80% of its vehicles manufactured in the U.S., but still imports many components, making it vulnerable to tariff impacts [1][4] Group 4: Supply Chain Challenges - The production of Ford's F-Series trucks is heavily reliant on aluminum, which is in short supply in the U.S., affecting production costs [2] - The company is awaiting agreements with Mexico, a key supplier of auto parts, to alleviate some of the cost pressures from tariffs [4] Group 5: Industry Perspectives - U.S. automakers, including Ford, face significant competition from foreign manufacturers benefiting from lower labor costs and government support [3] - The United Auto Workers (UAW) union advocates for tariff policies that encourage domestic production and employment of skilled labor [4]