DETROIT — Ford Motor on Tuesday reported a 16.3% year-over-year U.S. sales increase for May, as the automaker continues an employee pricing program amid rising tariff costs and vehicle price increases.
Sales for the Detroit automaker were led by a 17.2% increase in its vehicles with traditional internal combustion engines, as well as a roughly 29% jump in hybrid models. Those gains offset a 25% drop in sales of all-electric vehicles — notably its electric F-150 — compared to May 2024.
May marked the third consecutive year-over-over, double-digit sales increase for the automaker, led the past two months by its employee pricing program that’s continuing through the Fourth of July weekend.
“Ford’s ‘From America, For America’ employee pricing program continues to connect with customers and drive strong sales results,” a Ford spokesman said in an emailed statement.
The automaker announced the pricing promotion as President Donald Trump‘s 25% auto tariffs on imported vehicles took effect in early April.
Salesman Walter Silva (R) helps Alexis Lechanet shop for a Ford vehicle at Metro Ford on May 6, 2025 in Miami, Florida.
Joe Raedle | Getty Images
However, since then, Ford has announced some vehicle price increases, specifically on those imported from Mexico. A Ford spokesman told Reuters the price hikes, which affected vehicles built after May 2, were a combination of seasonal adjustments and tariff impacts.
Beginning in late March, consumers rushed to purchase new vehicles ahead of potential price increases due to tariffs, assisting automotive industry sales during the second quarter.
But Cox Automotive last week forecast the U.S. sales pace for May would be slower than the “tariff-inspired buying surge” of the prior two months.
Cox forecast the May seasonally adjusted annual rate (SAAR), or sales pace, to be about 16 million, up slightly from a year earlier but a significant decline from March’s sales pace of 17.8 million and April’s 17.3 million.
Sales volume in May is expected to rise 3.2% from last year and 2.5% from last month, assisted by one additional selling day, according to Cox.