Mexican Media Brands
Ford Drops Plan to Import Focus Crossover from China
Ford Motor Co. says it has shelved plans to begin importing a crossover version of its Focus five-door hatch from China next summer because of the Trump administration’s 25% tariff on such vehicles.
#economics
Share
Ford Motor Co. says it has shelved plans to begin importing a crossover version of its Focus five-door hatch from China next summer because of the Trump administration’s 25% tariff on such vehicles.
Ford announced in June 2017 that it would build the next-generation Focus in China after scrapping plans to relocate U.S. production to Mexico. At the time, the company estimated the move from Mexico to China would save $1 billion, mainly by eliminating plans for another assembly plant in Mexico.
Current U.S. versions of the Focus (pictured above) have been assembled at Ford’s factory in Wayne, Mich. But that facility is being retooled to make the company’s all-new Ranger midsize pickup and Bronco SUV. Those models, which are expected to be strong sellers, offer significantly greater profitability.
Ford also supplies some Focus models to the U.S. from factories in Europe. It isn’t clear whether the company plans to find another source for the wagonlike Focus Active variant to be built in China or simply cancel it for the U.S. market. Focus sales in the U.S., which shrank 6% in 2017, plunged 15% through July, according to Kelley Blue Book.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.