This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Ford Offers Discounts on Stockpile to Boost Sales
April 3, 2025
Ford is launching a broad discount program starting Thursday, offering employee pricing to all customers. This move leverages its strong US production base and above-average inventory to remain competitive as rivals raise prices to offset new tariffs. While the recently announced 25% auto import tariffs are shaking the industry, Ford is relatively well-positioned, with 80% of its US-sold vehicles made domestically. Analysts see this as an advantage over competitors like GM and Stellantis, which rely more on imports. However, Ford still faces higher costs on imported parts. Despite market turbulence, strong March sales and lower-than-average incentive spending suggest Ford has pricing flexibility. JP Morgan strategists Eric Beinstein, Nathaniel Rosenbaum and Evan Piascik are bullish on US automakers, stating in a note, “We don’t believe any of the large automakers are likely to get downgraded to high yield in the coming months…As such, in the scenario where today’s announcements become a clearing event, autos have room to rally.”
Ford’s 6.5% 2035s inched up by 0.4 points to 99.09 with its z-spread easing by ~12bp to 267bp (yield 6.62%).
For more details, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.