Ford CEO: Trump Trade Policies Will “Blow a Hole” in US Auto Industry

If someone had designed an AI program to dismantle US Industry and the US economy, they could hardly do as well as what the Trump administration has planned.

New York Times:

Ford Motor could be forced to lay off employees if the Trump administration ends subsidies and other financial support for electric vehicle manufacturing, the company’s chief executive said on Tuesday.

Ford has invested heavily in factories to produce batteries and electric vehicles in Ohio, Michigan, Kentucky and Tennessee, Jim Farley, the Ford chief executive, said at a conference in New York. If Republicans repeal Biden-era legislation that allocated billions of dollars in subsidies and loans for the projects, Mr. Farley said, “many of those jobs will be at risk.”

Mr. Farley was also sharply critical of President Trump’s threat to impose tariffs on cars and components from Mexico and Canada. Ford makes several vehicles in Mexico, including the Maverick pickup and Mustang Mach-E electric S.U.V., and engines in Canada.

“A 25 percent tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” Mr. Farley said, according to a transcript of his remarks provided by Ford. “It gives free rein to South Korean and Japanese and European companies that are bringing one and a half to two million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs.”

Meanwhile:

NPR:

The Trump administration is expected to purchase $400 million worth of armored Tesla vehicles, according to a new State Department document detailing procurement for fiscal year 2025.

Tesla Chief Executive Elon Musk is a top White House official who has been leading the Department of Government Efficiency, a unit focused on shrinking the federal workforce and ferreting out corruption.

The document does not specify what Tesla vehicles will be purchased by U.S. officials, but Musk’s Cybertruck, with its militaristic design and stainless steel exterior, could be an option.

After reports circulated Wednesday night of the State Department’s intent to purchase Tesla vehicles, the document was edited, at 9:12 p.m., and now says the federal contract is for $400 million worth of “armored electric vehicles,” but the word “Tesla” was removed.

Responding to a segment by MSNBC’s Rachel Maddow about the $400 million contract, Musk wrote on X on Wednesday night: “Hey @Maddow, why the lie?”

The State Department and Musk did not return requests for comment.

Musk, who spent more than a quarter-billion dollars to help elect Trump, has used an X account devoted to DOGE to highlight what he views as excessive or unnecessary federal contracts.

As Musk’s deputies have gained access to nearly two dozen federal agencies, ethics experts have raised concern about the billionaire running into conflicts of interest, since Musk runs six companies, some of which are under investigation by government authorities. Musk’s companies, including Tesla and SpaceX, also have multibillion-dollar contracts with the federal government.

Most of the federal money Musk has received has gone to SpaceX, the rocket company, for projects including work for NASA to launch Musk’s Starship with astronauts to the moon.

A new Cybertruck starts at around $82,000, and about 38,000 were sold last year, according to Cox Automotive. The truck, which was unveiled in 2019 and began reaching customers in 2023, has faced complaints about rust, finger pinches and defective accelerator pedals.