On the Dash:
- Tariff changes could affect vehicle pricing, incentives and model profitability across competing brands.
- Ford and GM’s different supply chains could create uneven cost pressures across their vehicle lineups.
- USMCA negotiations remain critical to North American vehicle production and dealer inventory costs.
Ford and GM are presenting a united front regarding the need to protect North American auto production. However, behind the scenes, the two automakers are advocating for trade policies that cater to their distinct manufacturing operations. Their differing tariff priorities highlight the increasingly divergent supply chains and production strategies between them.
While Ford is pushing for higher tariffs on vehicles imported from South Korea, GM produces approximately 400,000 vehicles annually for the U.S. market. Ford is also advocating for lower duties on imported aluminum and other materials, as it’s the industry’s largest aluminum buyer and relies heavily on these materials for its F-150 pickups. It also claims that roughly 80% of the vehicles it sells in the U.S. are manufactured domestically.
On the other hand, GM has challenged Ford’s battery strategy, criticizing its reliance on Chinese battery technology through its Michigan battery venture with CATL. GM asserts that it contributes more significantly to the U.S. workforce when both salaried and hourly employees are considered. Notably, the automaker is focused on developing its own battery technology, including sodium-based batteries, and is also pushing to modify proposed legislation that targets Chinese connected-vehicle technology, which currently permits certain battery components.
It’s important to note that all three Detroit automakers support renewing the USMCA, as they seek lower tariffs on vehicles and parts produced in North America than on those from overseas. Industry trade groups are also advocating for higher tariffs on vehicles from countries such as Japan and South Korea.
As the two automakers continue to evolve, they are increasingly diverging on EVs, batteries, affordable vehicles, and manufacturing strategies. Since GM is expanding its defense business and developing battery technology in-house, Ford is concentrating more on profitable trucks, SUVs, and other iconic vehicles. This ongoing trade policy dispute illustrates how differently the two companies approach the U.S. market.
