Ford's Fiscal Cliffhanger: Will Tariffs Be Their Ganon?

A Kingdom in Peril?

Greetings loyal subjects! Princess Zelda here reporting live from Hyrule... I mean Detroit! Ford that metal steed manufacturer is about to reveal its first quarter earnings. But hold on to your Rupees because Wall Street is less interested in these results and more concerned about the looming shadow of President Trump's auto tariffs. It seems even Hyrule's finest economists are scratching their heads muttering 'It's a secret to everybody!' about what's to come. These tariffs like a swarm of Keese are creating uncertainty for the whole industry!

Rupee Revenue Rollercoaster

The numbers are in and well... Let's just say they're about as consistent as a fairy's flight path. Analysts expect earnings per share to be a measly 2 cents (talk about a bomb less explosion!) and automotive revenue to hit $36.21 billion. Sounds like a lot of Rupees right? Wrong! That's a 9.2% drop in revenue compared to last year and earnings per share are down a whopping 96%! Even Link winces at a hit that big. "Well excuuuuuse me Princess!" but that's a harsh downturn.

Echoes of a Bygone Era

Remember the good old days of 2024? Ford raked in $39.89 billion in automotive revenue boasting a net income of $1.33 billion and adjusted earnings before interest and taxes of $2.76 billion. Now? It’s like Ganon cursed their profits with a 'Wall of Depreciation!' Ford had to stop exporting vehicles to China faster than you can say 'Hyah!' thanks to these pesky tariffs. But fear not loyal drivers! Ford hasn't announced any drastic changes to its North American plans. Yet...

Farley's Fortune Telling?

Ford CEO Jim Farley when asked about the financial doom and gloom played it cooler than an Ice Arrow. He dodged questions about the tariff's impact and wouldn’t say if Ford would change its 2025 guidance. Smart move Jim. You don't want to give Ganon any more ammunition right? But let's not forget they previously predicted adjusted earnings before interest and taxes of $7 billion to $8.5 billion adjusted free cash flow of $3.5 billion to $4.5 billion and capital expenditures between $8 billion and $9 billion.

GM's Gloomy Musings

Meanwhile across town General Motors is feeling the sting. They've lowered their 2025 financial guidance expecting a $4 billion to $5 billion wallop thanks to those very same tariffs. See? Even they're saying 'These tariffs are bad mmkay?' I wonder if they have to fight a dark lord to get to work every morning too.

To Be Continued... (Probably)

So what does this all mean? Will Ford's profits survive the tariff onslaught? Will Farley reveal his master plan? Stay tuned dear readers for updates! This is developing news so check back for more insights. And remember it's dangerous to go alone take this: a grain of salt and a healthy dose of Hyrulean optimism!