This report does not constitute a rating action. NEW YORK (S&P Global Ratings) May 6, 2025--S&P Global Ratings today said that tariff-related costs (including a gross impact of $2.5 billion for 2025) imply narrowed ratings headroom for Ford Motor Co. (BBB-/Negative/A-3) relative to our prior assumptions for 2026 and beyond, despite its better cost management in the first quarter ended March 31, 2025. After incorporating these cost headwinds, net of offset and recovery actions (roughly $1 billion in 2025), we now expect the company?s EBITDA margins will be in the 6%-8% range for 2025 to 2027 (compared with our prior expectation for the 6.5%-8.5% range) with free operating cash flow (FOCF) to sales of about 0.5%-1.5%, which is slightly below
