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As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by REUTERS.COM:

DETROIT (Reuters) – Ford Motor Co (F.N) has abruptly killed a plan to sell a Chinese-made small vehicle in the United States because of the prospect of higher U.S. tariffs, the head of the automaker’s North American operations said Friday.

The automaker’s decision came as U.S. President Donald Trump is escalating a trade battle with China, threatening to impose duties on another $200 billion in Chinese goods.

The Trump administration has already imposed duties on Chinese-made vehicles of up to 25 percent. Trump is separately evaluating a proposal to impose tariffs on all imported vehicles on national security grounds.

The article goes on to state the following:

The Chinese-made Focus Active, which Ford calls a crossover, would have been a niche vehicle for the United States, and the decision to abandon plans to launch it in the U.S. market next year will not cost jobs or have a significant impact on the automaker’s U.S. sales, Ford North America chief Kumar Galhotra told reporters during a conference call on Friday.

“It basically boils down to how we deploy our resources,” Galhotra said. Given the prospect of high tariffs, the Focus Active’s costs in the U.S. “would be substantially higher.”

Asked when the decision was taken, Galhotra said, “we just made it. Literally.”

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2 COMMENTS

  1. Good. I’m a Ford guy but I damn sure wouldn’t buy a communist made car. I understand why they would make it in Mexico or Thailand because they could then price it competitively. The unfortunate fact is, if they make a low end vehicle in the States it can’t compete on a price basis with Kia, Hyundai, and the others. But I don’t care to buy the rope to hang myself with from an enemy who has nukes pointed at us.

  2. I agree with Cliff. He is right on the mark. My last two cars have been Ford and after the business with Ford who said they would move back to our country and reneged I will no longer buy Ford. Our taxpayer monies have bailed out several car manufacturers and they have shown us disrespect for our country. I understand they want global sales but to go back on their word is enough for me.

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