Ford 0-0-0 Summer Sales Event: 0 down payment, 0% interest for 48 months, 0 payments for 90 days

[National Superbike]

If you built a pre-tarrif 2025 F150 exactly like my 2022 F150, it would approach $4-5K more expensive than mine.

There are SO MANY things that lend to the continuous rise in the prices of almost everything over the last 5 years. And no doubt politics plays a significant role in the inflationary nature of such things. But I think claiming inflation at the feet of the current Tarrif headlines is just opportunistic at best.

Or put another way, gross oversimplification.

Well, somebody is going to pay the tariffs. They are essentially taxes on goods. Ford is estimating they will cost them 2 billion this year. GM even more. Ford will probably eat some of it and pass some of it on to the customer. But there is not 15-25% margin in any of the auto companies so customers will undoubtedly pay higher prices. I'm guessing at 10% because the manufactures can't onshore all the production and supply chain stuff in a few months and even f they could, it obviously cost more to produce it here than in Mexico or Asia or we would be producing it here already. The 25% tariff on steel and aluminum will be a huge cost to the manufacturers since domestic prices will naturally rise to include it. I think we are in for a big jump in inflation over the next 6 mo.

Sponsored

 

[JCsTruck]

Federal reserve officials recently stated that the latest jobs data supports 3 Rate cuts planned for 2025. Michelle Bowman with the Federal Reserve’s vice chair of supervision said that recent inflation data has also added to her position that the tariffs will not lead to long-term inflation.

Lets take Nike the sneaker company for example. They charge ~$140 for a pair of sneakers. They are manufactured in China for ~$10 pair. Lets say the tariff is 25%. That would cost Nike $2.50 in tariffs so if Nike passed 100% of the tariff onto the customer then the sneakers could now cost $142.50 but they wont pass it all onto the customer and they will eat the increased tariff like everyone else. The media though will play on peoples fears and as usual blowing things out of proportion to distort and conflate the issue because fear sells stories and they are not in the business of telling the truth.

Automobile manufacturing is more complicated but Ford makes a lot of their vehicles in the USA and the parts that they source overseas are subject to tariffs but they have also sold record numbers of vehicles this year even outselling Toyota for once. I think Ford will be fine and with so many automobile manufacturers now committing billions of dollars to manufacturing in the US I think prices will stabilize with competition being the check and balance.

 

[National Superbike]

Federal reserve officials recently stated that the latest jobs data supports 3 Rate cuts planned for 2025. Michelle Bowman with the Federal Reserve’s vice chair of supervision said that recent inflation data has also added to her position that the tariffs will not lead to long-term inflation.

Lets take Nike the sneaker company for example. They charge ~$140 for a pair of sneakers. They are manufactured in China for ~$10 pair. Lets say the tariff is 25%. That would cost Nike $2.50 in tariffs so if Nike passed 100% of the tariff onto the customer then the sneakers could now cost $142.50 but they wont pass it all onto the customer and they will eat the increased tariff like everyone else. The media though will play on peoples fears and as usual blowing things out of proportion to distort and conflate the issue because fear sells stories and they are not in the business of telling the truth.

Automobile manufacturing is more complicated but Ford makes a lot of their vehicles in the USA and the parts that they source overseas are subject to tariffs but they have also sold record numbers of vehicles this year even outselling Toyota for once. I think Ford will be fine and with so many automobile manufacturers now committing billions of dollars to manufacturing in the US I think prices will stabilize with competition being the check and balance.

Nike's net profit margin in 2025 was 6.95% according to Yahoo Finance. So, 2.50/pair is actually a significant hit and I doubt they will eat it. Hard to guess what long term inflation will be since all it takes is some sort of Geo-political event to significantly change things. But I think the tariffs will at least have a significant effect over the next 6 mo and I doubt wages will keep up.

 

[JCsTruck]

Nike's net profit margin for fiscal year 2025, ended May 31, 2025, was 6.95%. This is based on a net income of $3.219 billion and total revenue of $46.309 billion.

Note that in fiscal year 2025 results reflect a significant decline compared to 2024, with net income down 43.53% and revenue down 10% from the previous year.

Nike’s net-profit margin (net-income / revenue) for fiscal-2024 was 11.4 %.
FY-2024 figures

• Revenue: $51.4 billion
• Net income: $5.7 billion

With Nike not seemingly doing as well this year vs last year with sales down 10% I am willing to bet they will not raise prices and still do well besides that fact.

 

[National Superbike]

Well then, make sure you buy their stock... But I'm betting that 26 will be worse than 25 due to tariffs and I am not buying their stock.

 

[spazzyfry123]

Sorry if this was covered, but how does this deal work with new orders? Those look to be upwards of six months out for delivery. Ts&Cs say to place and order or take delivery by 9/2. But just beneath that, it says for all offers, you must take delivery by 9/2. Which is it?

Maybe I need more caffeine…

Sponsored