The Wall Street Journal reported on the risks of rising manufacturing costs for car models, particularly those from German and Chinese manufacturers. Ford's Lincoln Nautilus, made in China, stands out as a significant model that contributes a third of Lincoln's sales. However, Lincoln's position in the luxury market is precarious due to low sales and unfavorable consumer perception, ranking 24th in Consumer Reports. With a steep drop in sales month-over-month, increasing prices to offset manufacturing costs may not be feasible for the struggling brand.
Ford's CEO Jim Farley highlighted the looming pressure of potential tariffs, stating, 'Let's be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we've never seen.'
Lincoln struggles within the luxury market, making it unlikely to raise MSRPs due to its low ranking in consumer perceptions, sitting 24th out of 32 in Consumer Reports.
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