Ford rules out building Focus Active in US

10 September, 2018, 22:26 | Author: Eric Barnett
  • Workers pack tinned peaches for export at a fruits processor in Huaibei city in central China's Anhui province. — AP

Late last month, Ford announced it won't bring the rugged Focus Active hatchback and wagon to the United States, due to the President Donald Trump Administration's tariffs on Chinese imports.

The automaker has already said it has no plans to restart production elsewhere.

Ford stood by its decision.

Given that Ford expects no more than 50,000 annual sales for the Focus Active, it wouldn't be profitable to build it in the United States, The Guardian reports.


Trump's increasing aggression toward China and his strong desires for increases in tariffs have many companies anxious. The President thought these tariffs would force the automaker to shift production of the Focus Active from China to the USA but Ford says that isn't happening. It asked the government to come up with other measures to bolster the economy. A message left with Apple's press office seeking comment on Trump's remarks wasn't immediately returned. The public had until September 6 to comment on the administration's plan.

Fact is, back on July 6, Trump began imposing 25 percent tariffs on $34 billion in Chinese imports, which included vehicles like the Focus Active. It makes many of its products for the U.S. market in China, and it also sells gadgets including the iPhone in China, making them a potential target for Chinese retaliation against the Trump tariffs. It will continue to sell the vehicle outside the states. Earlier this year Ford cancelled all its smaller cars with the exception of the Mustang and the Focus Active.

But if Apple shifted to building its iPhones in the United States instead of China, it would require "20 percent price increases to offset the incremental labor costs", Bank of America Merrill Lynch told clients on Monday. "Apple has highlighted how it sourced over $50 billion of inputs a year ago from its 9,000 U.S. suppliers across the country".

Pulling the plug on the low-volume Focus Active won't be hugely significant to Ford's business because it sells more than 2.5 million vehicles annually in its home market.

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