Ford’s Emphasis on American Manufacturing Helps It Avoid Some US Tariffs

Ford is turning itself around by focusing on light-truck models in the United States, which we think is the right move, since light trucks are over 80% of US industry new light-vehicle sales. Ford's challenge is to increase share profitably while elevating Lincoln into a global luxury brand, scaling electric vehicles, and containing costs such as excessive warranty spending, which it had some success with in 2025. The mostly no-moat nature of the auto industry makes these tasks very difficult, and we see headwinds from areas such as restructuring, commodities, and exchange while investments in mobility and electrification take years to pay off.