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Episode #1037: Today we break down Ford’s Q1 fallout as tariffs cast a $1.5B shadow, electrified vehicles surge to nearly 25% of new-car sales led by hybrids and non-Tesla EVs, and Waymo revs up its driverless ambitions with a new Arizona mega-factory and major city expansion plans.

Show Notes with links:

• Ford is bracing for a bumpy ride in 2025 after revealing a steep Q1 net income drop and pulling its full-year earnings forecast. Mounting tariff costs and factory downtime from SUV redesigns weighed heavily on the automaker’s performance, with more uncertainty ahead.
  • Net income fell 65% to $471M.
  • Ford expects 2025 tariffs to cut profits by $1.5B, despite $1B in planned offsets.
  • CFO says Q1 tariffs cost $200M, mitigated partly by bonded carrier routes through Canada.
  • Ford Pro earned $1.3B (down 56%); Model e lost $849M despite a 15% EV sales bump.
  • CEO Jim Farley: “We are strengthening our underlying business with significantly better quality and our third straight quarter of year-over-year cost improvement, excluding the impact of tariffs.”

• Electrified vehicles accounted for nearly one in four new-car sales in Q1 2025, as hybrids led the growth and Tesla's dominance continued to wane. Buyers are moving fast—whether driven by rebates, tariffs, or just better options.
  • EV sales hit 750,698 in Q1, up 29.6% YoY, with total electrified market share reaching 24.4%.
  • Hybrids surged 44.1%, capturing 13.3% of all new-car sales, thanks largely to Toyota, Honda, Hyundai, Ford, Lexus, and Kia—who together own 97% of the segment.
  • Tesla’s BEV share dipped to 44.2%, while non-Tesla BEVs jumped 47%.
  • Florida EV sales rose 42.5%, while Texas surged 37.1%, outpacing growth in traditional EV strongholds.
  • “A significant part of it is due to automakers tapping into what drivers want. The 2025 lineup offers 71 unique models (up from 54 in 2025) with improved specs and options for every lifestyle." said Recurrent’s Liz Najman. 

• Waymo is transitioning from test phase to mass production, expanding its ride-hailing footprint while anchoring its future with a high-capacity, AV-focused factory in Arizona.
  • Waymo One now handles 250,000 weekly rides across Phoenix, LA, SF, and Austin with expansions into Atlanta, Miami, and Washington, D.C. planned in 2026
  • A 239,000-square-foot factory in Mesa, AZ will build thousands of autonomous Jaguars annually, in partnership with Magna.
  • The facility will feature a fully automated line and produce vehicles with Waymo’s latest sixth-gen Driver tech.
  • “The Waymo Driver integration plant in Mesa is the epicenter of our future growth plans,” said Ryan McNamara, Waymo’s VP of operations.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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