*

Ford sees $3 billion gross tariff hit in 2025, up from

previous

$2.5 billion estimate

*

Automaker said tariffs added $800 million in expense in

the

second quarter

*

Ford issues annual guidance of EBIT between $6.5 billion

to $7.5

billion

By Nora Eckert and Nathan Gomes

DETROIT, July 30 (Reuters) - Ford Motor ( F ) said on

Wednesday its second-quarter results took an $800 million hit

from tariffs, a less pronounced impact than some of its U.S.

rivals thanks to Ford's strong domestic manufacturing base.

Still, the automaker said tariffs will likely cost more than

expected for the year, increasing the higher range of its

projection by $500 million, to $3 billion.

Chief Financial Officer Sherry House said Ford raised

the projection because duties on Mexico and Canada have remained

higher for longer than expected. She also cited elevated levies

on aluminum and steel.

The Dearborn, Michigan automaker also issued guidance

for annual results on Wednesday, after suspending it in May to

assess the impact of U.S. President Donald Trump's tariffs.

Ford said it now plans to record full-year adjusted earnings

before interest and taxes of $6.5 billion to $7.5 billion, down

from its February 2025 projection of between $7.0 billion and

$8.5 billion.

For the latest quarter, the auto giant reported a 21%

decrease in earnings per share to 37 cents. Ford recorded a net

loss for the quarter of $36 million, which it said was primarily

due to special charges related to the cancellation of a

three-row electric SUV, and field service actions from a $570

million recall.

Ford posted revenue of $50.2 billion for the quarter, up 5%

from a year earlier. The automaker has clawed away market share

from rivals with aggressive discounting programs and a "zero,

zero, zero" campaign, which offers shoppers a $0 down payment,

zero percent interest for 48 months, and zero payments for the

first 90 days on most of its vehicles.

Gasoline-powered vehicles notched a 15.5% increase in the

quarter on the back of these deals. Hybrid offers were also

popular with shoppers in the quarter.

Ford said results for the quarter ending in June were $800

million lower because of Washington's tariffs. Competitor

General Motors ( GM ) reported steeper tariff headwinds, with a

$1.1 billion hit for the quarter, largely from imports on its

entry-level Chevrolet and Buick models made in South Korea.

GM has projected a $4 billion to $5 billion tariff impact

for the year, with plans to offset 30% of that expense. Ford has

said it expects to offset $1 billion of its gross tariff costs.

Jeep-maker Stellantis ( STLA ) said tariffs were expected

to add $1.7 billion in expenses for the year.

The White House did not reply to an email requesting

comment on the automakers' projections. In the past, Trump has

said the levies will bring manufacturing power and jobs back to

the U.S.

Ford boasts domestic production for around 80% of the

vehicles it sells in the U.S., about 25% more than its two

Detroit rivals, according to business analytics firm

GlobalData's ( GLDAF ) review of last year's imports.

While this foundation has made it more resilient to tariffs,

it still faces steep levies on aluminum, steel and copper that

have rocked the industry. Additionally, executives have said

that a pinched supply of rare earth magnets from China has

disrupted production this quarter.

Ford's EV investments and quality problems remained among

its greatest challenges. The automaker expects to lose up to

$5.5 billion on its EV and software business in 2025, and

recorded a $1.3 billion operating loss on this segment for the

quarter. Elimination of a $7,500 consumer tax credit in

September is expected to additionally dampen EV sales growth.

The automaker is also battling costly quality issues and an

industry-topping volume of recalls. Reducing these problems has

been a priority for Ford CEO Jim Farley since he took on the

role in 2020.