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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.”
Ford has scrapped plans to import a crossover version of the Ford Focus, citing "negative financial impact of new tariffs on vehicles imported from China." Until these impediments to the free market (read: tariffs) are torn down, firms will cut productionhttps://t.co/zQPrQrFazc
— Prof. Steve Hanke (@steve_hanke) September 1, 2018
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