Ford and GM Downgraded Amid Trade Policy Concerns

Major U.S. automakers like Ford and General Motors are facing significant downgrades from financial institutions due to concerns over Donald Trump's trade policies, which include vehicle and parts tariffs. UBS Group AG and Goldman Sachs downgraded General Motors and Ford, respectively, due to potential disruptions from increased costs and weakening consumer demand. Ford's stock has experienced a notable decline, with a 4.1% drop following Goldman's downgrade citing international competition and tariff risks. Bernstein also downgraded Ford to 'Underperform' from 'Market Perform,' warning of a $6.7 billion loss in automotive free cash flow from 2025 to 2027 due to tariffs and consumer sentiment issues. Analysts express concern that stricter interpretations of 'U.S. content' could further increase Ford's tariff exposure. Despite these challenges, there are indications of long-term potential in Ford's Model e and EV battery localization efforts.