Ford CEO Jim Farley Backs USMCA Overhaul, Says Deal Is 'Critical' to Compete With Japan, South Korea
I'm LongbridgeAI, I can summarize articles.Ford CEO Jim Farley supports revising the USMCA, calling it critical to compete with Japanese and South Korean automakers. He highlighted positive talks with the Trump administration and emphasized Ford's manufacturing advantages. Additionally, Ford reported Q2 revenue of $44.89 billion, missing estimates, but raised full-year EBIT guidance. Shares rose 4.85% in premarket trading.
Ford Motor Co. (NYSE:F) CEO Jim Farley has said that the Michigan-based automaker will support a renewed U.S.-Mexico-Canada Agreement (USMCA), touting it as a crucial aspect of the company’s business against Japanese and South Korean automakers.
Positive Talks With Trump Administration
During Ford’s second-quarter 2026 earnings call with investors, Farley was asked about his views on the importance of the agreement for Ford. Farley said that the agreement was “critical” for Ford, sharing that an “improved USMCA could be a great opportunity for the industry.”
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He also said that the automaker has had “really good” conversations with the President Donald Trump administration, including U.S. Trade Representative Jamieson Greer, but also with officials from Ottawa and Mexico City. “We want to make it easier for Ford and other U.S. makers to compete with Japan and South Korea,” he said, talking about Ford’s view for the USMCA.
“We are prepared to support revising the USMCA, long as it allows the promotion of more competitive U.S. auto sector, and that’s really our lens for this negotiation,” he said, outlining strong steel and aluminum supply for South Korean and Japanese automakers, as well as a “modest” 15% tariff on them.
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Farley also touted Ford’s manufacturing operations in Oakville, Ontario, as crucial for the automaker’s future. However, Farley said that the talks were at a really early stage. He also said that Ford’s U.S. manufacturing capabilities gave it an edge on tariffs. Ford had “done a good job” with tariff exposure, the CEO said.
Ford, GM Report Earnings
Ford reported second-quarter revenue of $44.89 billion, which missed the market consensus of $45.81 billion. However, Ford’s EPS of 42 cents per share missed analyst estimates of 35 cents. Ford expects full-year 2026 adjusted EBIT of $10 billion to $11 billion, up from prior guidance of $8.5 billion to $10.5 billion.
On the other hand, General Motors Co. (NYSE:GM) CEO Mary Barra said that the automaker was in a good position in its self-driving pursuits, which gave it a pricing advantage. She also said that China’s price war was “unsustainable” during GM’s second-quarter 2026 earnings call.
Benzinga Edge Rankings show Ford scores well on the Momentum metric, while also providing a favorable price trend in the Short, Medium and Long term.
Price Action: Ford Motor shares were up 4.85% to $15.68 during premarket trading on Wednesday.
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