Ford Sees May Sales Surge Thanks to Employee Discount Strategy

American automaker Ford saw its U.S. sales rise by more than 16% in May compared to the same month last year, maintaining the same strong growth pace as in April. The continued boost is largely attributed to the company’s bold pricing strategy, offering employee-level discounts to all customers across the country.

Based in Dearborn, Michigan, Ford launched this promotional campaign in response to the newly imposed tariffs on vehicle imports into the United States. These tariffs, introduced in early April, were partially softened later that month by President Donald Trump. Despite the easing, Ford estimates the tariffs will reduce its comparable operating profit by $1.5 billion in 2025. For reference, its 2024 operating profit reached $10.2 billion.

While many companies responded to the tariff hikes by raising prices to offset costs, Ford took the opposite approach. It extended its internal discount program, usually reserved for employees, to the general public for select Ford and Lincoln models. However, participation in the campaign remains at the discretion of individual dealerships.

According to Ford’s website, the starting MSRP for a 2024 Mustang is $31,920, but drops to $29,671 under the employee discount. The F-150, America’s best-selling pickup for decades, sees its price fall from $37,065 to $34,207 under the same promotion.

Originally set to expire on June 2, the discount campaign has now been extended through July 4.

In total, Ford sold 220,959 vehicles in the U.S. in May—an increase of 16.3% year-over-year. Traditional internal combustion engine vehicles saw a 17.2% increase, reaching 191,517 units sold. Electrified models, meanwhile, grew by 10.7% to 29,442 units. However, this segment showed mixed results, with all-electric vehicle sales dropping by 25%, while hybrid sales surged by 28.9%.

By category, car sales declined by 3.2%, while SUV sales rose by 25%, and pickup trucks posted an 11.2% gain. Lincoln, Ford’s luxury brand, stood out with a 39% increase in sales, though its overall volume remained modest at 11,573 vehicles.

Other automakers also posted gains. Japanese giant Toyota, the second-largest carmaker in the U.S. market behind General Motors, sold 240,176 vehicles in May, up 10.9%. Over the first five months of the year, Toyota moved 1.04 million vehicles, a 5% increase.

Within the Toyota brand, vehicle sales climbed by 12.3%, while its premium division Lexus grew by 2.4%. Toyota continued to lead in hybrid technology, selling 118,853 electrified vehicles in May—a year-over-year increase of 39.3%.

South Korean manufacturers also experienced positive trends. Kia saw a 5% increase, selling 79,007 units, while Hyundai sales grew by 8% to 84,521 vehicles.

Some automakers, including General Motors and Tesla, report their sales on a quarterly basis and were not included in the monthly comparison.

According to research firm Cox Automotive, U.S. auto sales are expected to reach 16 million units in 2025. This is a downward revision from the 17.8 million forecast made in March before the implementation of tariffs.