FORD has warned dealers of price adjustments and revealed when car prices could go up in a leaked memo.
The auto giant said cars produced in May could see price hikes – but there was a sliver of good news for buyers in the letter.
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The internal message was sent on Wednesday by the automaker’s top brass in Dearborn, Michigan.
It was sent out as Ford and other car brands are mulling what to do in response to President Donald Trump’s steep auto tariffs.
Ford rolled out big discounts earlier this month to try to appeal to car buyers during the uncertainty.
But that discount program only runs through June 2.
Prices on new vehicles built in May and after “may change,” executive Andrew Frick wrote in the memo.
Frick said Ford is “evaluating the potential impact” of tariff actions and how it’ll affect the price of new cars.
“In the absence of material changes to the tariff policy as articulated to date, we anticipate the need to make vehicle pricing adjustments in the future,” Frick wrote.
“Which is expected to happen with May production.”
A spokesperson said customers could see increased prices in early July for cars that were manufactured in May.
“Customers will have a lot of choices, and we have plenty of inventory to choose from through June 2,” a company spokesperson said after the memo was sent.
The memo also reassured dealers that prices won’t go up on any vehicles already on their lots.
The warning came as the Trump administration’s 25% tariffs on imported vehicles kicked on April 3.
The move is already raising costs across the industry.
Ford, like other automakers, tried to cushion the blow with discounts and price guarantees.
But behind closed doors, US car companies are telling lawmakers the tariff could force massive price hikes.
An April analysis by the Center for Automotive Research projected US automakers could face a $108 billion hit in 2025 from the tariffs.
Ford, though, is better placed than others.
About 80% of the vehicles it sells in the US are made domestically.