Ford Cancels Plans To Import Focus Active To US From China

Ford Cancels Plans To Import Focus Active To US From China

Automotive News reports today that Ford has cancelled its plans to import the Focus Active to the USA, and it's all due to the 25-percent import tariff imposed as part of President Trump's trade war with China.

The automaker announced the decision on Friday, saying that the previously imposed tariffs on Chinese products - and the prospect of more in the future - are likely to hit the company's bottom line.

"Given the negative financial impact of the new tariffs, we've decided not to import this vehicle from China", Kumar Galhotra, Ford president of North America, confirming the change in plans. "Given the negative financial impact of the new tariffs, we've chose to not import this vehicle from China", he said.

Canceling the Focus Active is the latest move in Ford's oft-evolving strategy for global passenger cars.

She said forty eight p.c of the vehicles sold in the USA had been imported final year, and even vehicles that aren't imported beget a most important percentage of foreign parts. The Ford Motor Company confirmed the information to The Detroit Bureau, claiming that the import tariff would make the crossover-styled hatchback too expensive.

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But the Trump administration's 25% tariff on USA imports from China made it a "very hard business case for us, so we're choosing to deploy these resources elsewhere", the newspaper quoted Kumar Galhotra, Ford North America's chief, as saying to reporters on a conference call Friday.

The decision could mean that the Mustang will be the only Ford passenger vehicle sold in the U.S. It projects that by 2020, almost 90 percent of its vehicles sold in North America will be trucks, SUVs or commercial vehicles.

This is likely the first of "many such announcements", warned Kristin Dziczek, vice president of the Ann Arbor-based Center for Automotive Research. GM wrote to U.S. Trade Representative Robert Lighthizer to plead its case for its China-built Buick Envision crossover SUV. "All of that imported content could be subject to tariffs as well".

As part of its shift away from sedans and hatchbacks, Ford had planned to sell just one variant of the new, fourth-generation Focus in the U.S. market: The crossover-esque Focus Active shown above. Harley-Davidson Inc. also has made plans to shift production of some motorcycles out of the feed markets in the European Union, which put tariffs on its bikes as reprisal for Trump's steel and aluminum levies. The company outsourced some of its manufacturing because profit margins in the US were falling.

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