Jim Cramer’s Bold Prediction on Ford Motor Company
Back in **2024**, on **May 14**, **Mad Money’s Jim Cramer** reacted strongly to **Biden’s 100% tariff** on **Chinese electric vehicles (EVs)**. He framed this decision as a significant protective measure for **U.S. automakers**, particularly highlighting its potential benefits for **Ford Motor Company (NYSE:F)**. Cramer positioned Ford as a likely beneficiary of these tariffs, especially considering its prior vulnerability to **low-cost Chinese EVs**.
“The biggest winners though will be the American automakers. There’s a widespread belief that our car companies are going to be roadkill once China’s auto industry gets here. We got that from — who? None other than the automakers themselves, especially Ford’s executive chairman **Bill Ford**. He’s been the most adamant about the existential threat of government-subsidized competition from the **PRC**…”
Stock Market Response
Despite Cramer’s bullish perspective, his predictions did not align with market realities. Ford’s stock entered a **decline of 14.39%** over the ensuing year, largely attributed to the **tariff risks** that U.S. automakers were facing. The question then arises: can tariffs truly shield **Ford** from the financial challenges posed by competition, particularly from China?
Competitive Landscape: Ford vs. General Motors
Ford Motor Company is among the largest U.S. automakers, manufacturing a diverse array of **combustion engine**, **hybrid**, and **electric vehicles** under its **Ford** and **Lincoln** brands. In a recent discussion, Cramer compared **Ford’s** position to its competitor, **General Motors (GM)**, noting:
“You know, listen, Phil, you had an amazing interview with **Mary Barra**; I’ve got to ask you, it looks like Ford has an edge on GM when it comes to what’s going on. In terms of tariffs. Because I think that **Jim Farley**, for whatever reason, makes much more in pure America than GM does. [Phil agreed]”
While evaluating the competitive landscape, it’s crucial to consider the broader market dynamics and how the **tariffs** will affect not only Ford but the automotive sector as a whole. Will these protective measures provide the expected outcomes for U.S. companies?
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