Automakers led by Ford (F) saw big sales gains in May as price cuts and shedding inventories blunted the effect of President Trump’s auto tariffs. The question is how long they can maintain pricing in lieu of trade deals, which have been elusive.
Ford reported sales jumped 16.3% in May to just under 221K units, the automaker’s best May since 2019 and the third straight month of sales gains. Truck sales surged 16% compared to a year ago, led by F-series pickups, Ranger midsize pickups, and the Maverick compact pickup, which moved over 15K units, a new sales record.
Ford’s hybrid sales jumped 29% to nearly 23K units, a new sales record as well. The only down note was the F-150 Lightning EV, which saw sales drop 42%, leading Ford’s overall EV sales to fall 25%.
The company’s SUV sales—which include the Bronco, Bronco Sport, Explorer, and Expedition — all saw big gains as well.
Ford rode its employee pricing plan scheme, which offered big discounts to all buyers starting on May 1, to great effect. The carmaker likely took market share from rivals GM (GM) and Stellantis (STLA), which opted not to use the so-called employee discount plans.
GM and Stellantis do not report monthly sales.
But Ford is now hiking prices on the popular Maverick, Mustang Mach-E, and Bronco Sport by as much as $2,000, as these models are made in Mexico and subject to the 25% auto tariffs, though USMCA—qualifying cars can have the value of US-made parts backed out.
Korean stalwarts Hyundai (HYMTF) and Kia (000270.KS) also reported sales gains in May. Hyundai reported sales rose 8% to 84,521 units, while Kia sales jumped 5% to 79,007 units.
Hyundai said SUVs like the Tucson, Santa Fe, and Palisade set May sales records, with Kia claiming the same for the Telluride and Sportage SUVs, as well as the Carnival minivan and K4 sedan.
Hyundai kept its sales momentum going by freezing prices through June 2 in response to tariffs and offering price cuts on certain models. Kia cut the price of its EV9 SUV by moving production to its plant in Georgia.
Despite the gains registered by Ford, Kia, and Hyundai, the problem remains that tariffs are still in place. Ford projects that tariffs will hit full-year EBIT profits by $1.5 billion, while GM claims its profits could drop by as much as $5 billion without mitigating efforts.
This story is developing. Honda and Toyota will report sales later today.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
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