Ford CEO Says Construction of Tennessee Factory Continues, Company’s Focus on U.S. Production Means ‘Different Exposure for Tariffs’

Ford CEO Jim Farley said on Wednesday that the automobile company is continuing production of its new factories in Tennessee and Ohio despite economic uncertainty amid President Donald Trump’s trade policy, arguing that the company’s American facilities offer a “different exposure for tariffs” compared to other car companies.

“We’re building new plants in Ohio and Tennessee,” said Farley when asked by CNN host Erin Burnett whether the Trump administration’s policies would bring manufacturing back to the United States. “We’re number two to Tesla in electric vehicles and number three in hybrids behind the Japanese competitors.”

Ford’s BlueOval City factory began development in 2021, and is slated to begin production this year, with full production of next-generation electric vehicles to start in 2027.

“Whether it’s a V8 F-150 or an EcoBoost F-150, we want people to have choices. We’re building two brand-new factories in the U.S., and we’re already the most American company,” Farley added.

The remarks by Farley come as the executive previously suggested Trump’s tariffs aimed at Canada and Mexico would have a “huge impact” on the American car industry.

“There is no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry with billions of dollars of industry profits wiped out and adverse effect on the U.S. jobs, as well as the entire value system in our industry,” Farley reportedly said during a February earnings call. “Tariffs would also mean higher prices for customers.”

Less than three months later, Farley would tell Burnett that Ford was uniquely positioned to face tariff challenges, as a result of its American workforce.

Describing the current status of Trump’s economic reforms as, “the first or second inning of a nine-inning game,” Farley repeatedly stated that Ford assembles “over 80 percent of our vehicles here,” with the company only importing low-value parts from other countries.

As a result of its production on American soil, Farley said that the company will likely make pricing decisions based on the actions of other major car sellers.

“We know exactly what the tariff bill would look like in terms of cost for the company,” said Farley. “What we don’t know is how competitors will respond.”

He noted, “they’ll have a totally different tariff bill,” and suggested some manufacturers could either choose to “build 10 factories” inside the United States , or else “pass pricing on to consumers this summer.”

Farley noted that Ford has seen record sales as the result of its temporary decision to offer “employee pricing” to consumers, which the executive said has been extended until July 4, and suggested such an option was available to Ford because its American workforce gives it “a different footprint and exposure to tariffs, which is an advantage.”

When asked about Ford’s relationship with the Trump administration, Farley suggested the president “knows Ford is different,” and appreciates that the company never relocated its operations to a foreign country.

“We’ve worked with his team every day for the last couple of months, a very high level of engagement. The administration knows Ford is different,” said Farley. “We never left the U.S.—that’s my point. We’re in a different situation than other companies. We also want to do the right thing, like building two new plants, but we have to figure out this affordability piece.”

The Ford executive made the remarks as the Trump administration eased tariffs impacting auto manufacturers, and as a number of U.S. Senators attempted to strip the White House of some of its authority to levy tariffs.

Watch the full interview:

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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
Photo “Jim Farley” by Ford.