It was just 10 days ago that Ford approved a new three-year labor contract with Unifor, the union representing 5,000 Canadian auto workers, securing jobs for the launch of Super Duty trucks later this year at the Ford plant in Oakville, Ontario, and to build more V8 engines at the Windsor and Essex factories across the river from Detroit.
As Ford CEO Jim Farley kicked off the company’s presentation of second-quarter financial results this week, he first called out the operations in Canada and the new labor contracts as crucial to the automaker’s success – while, of course, touting Ford as the most American of US car companies.
Ford Flex assembly line in Oakville, OntarioFord
And Farley used this opportunity to nudge the Trump administration to reach agreement with our neighbors to the north and south on a new US-Mexico-Canada Agreement for free trade. USMCA has been in place since July 2020, and it replaced the North American Free Trade Agreement.
War Of Words With Canada
President Trump wants a deal with better terms for the US, although negotiations are going poorly because of the 25% tariffs he slapped on goods from both nations. As Canada pushes back, the White House recently announced a 50% tariff on Canadian imports like cars, alcohol, dairy, wine, hockey sticks, and cement, effective August 19. Against this backdrop, is there any hope for a new USMCA?
Dynamic shot of the 2026 Ford MaverickFord
Farley sure hopes so, and he describes the Canadian operations as “really important to our future at Ford.” He opened the earnings presentation by describing USMCA as an opportunity “to build a framework that levels the playing field for North American manufacturers, just like Ford, against the mass imports from Japan and South Korea that carry a huge currency advantage.”
Pivoting From USMCA To Japan, Korea
Asked in the Q&A by an analyst if he has a sense for how the USMCA discussions are going, Farley said Ford has had “really good conversations” with the Trump administration, with US Trade Representative Jamieson Greer, and with officials in Mexico and Canada.
2021 Ford bronco SportFord
Farley said that domestically, the goal needs to be establishing “a stronger US industrial base.” He singled out trade relations with Japan and South Korea.
“They have incredibly strong local supply chains like steel and aluminum. They have much weaker currencies, in some cases 40-year lows, and they have a modest 15% tariff.”
Farley didn’t call out General Motors specifically, but he said “some of our domestic competitors import from those locations, and they have huge advantages.” From manufacturing plants in South Korea, GM imports the Chevrolet Trax and Trailblazer, the Buick Envista, and Encore GX for North America.
2024 – 2026 Buick Envista exteriorBuick
Ford And Geely Pair Up In Spain
Oddly though, Farley did not mention China as a trade threat this time around, perhaps because Ford just inked a Europe-focused joint venture with China’s Geely Auto to co-produce multi-energy and electric passenger vehicles at Ford’s Valencia manufacturing plant in Spain, starting in 2028. Farley said he wants the new USMCA to achieve a level playing field with foreign competitors and protect US manufacturing.
“We are prepared to support revising the USMCA so long as it allows the promotion of a more competitive US auto sector, and that’s really our lens for this negotiation.”
In the second quarter, Ford posted adjusted earnings before interest and taxes of $2.5 billion, based on $48.3 billion in revenue. Ford Blue, Ford Pro, and Ford Credit combined for $3.6 billion in earnings, while the EV-focused Ford Model e lost $900 million.
The 2020 Ford Super Duty can take you anywhere, anytime.Ford
On the product front, Farley said off-road enthusiast vehicles now make up 25% of US sales. “We made a huge bet on Bronco, Tremor, and Raptor, and it has paid off with higher growth and higher margins,” he said. Going forward, he promised more hybrids and said the automaker is on track to launch all-new F-Series and Super Duty pickups and the $30,000 truck from the new Universal Electric Vehicle platform, starting next year.
CarBuzz Insight – Why This Matters:
It’s been decades since Detroit automakers like Ford could focus their energies in North America, or specifically the US market. But in today’s global auto industry, tariffs, supply-chain hiccups, wars, trade disputes, and natural disasters everywhere make for an unstable setting for doing business.
And while trade representatives from Canada and the US bicker about lots of things, Detroit is celebrating this week’s opening of the new Gordie Howe International Bridge to, ironically, improve trade across the border. Shipping cars, trucks, and auto parts internationally just got easier, at least from a logistics standpoint. Politically speaking, however, it could be harder than ever.
