Despite Trump's Suggestion, Ford Won't Produce This Vehicle In The US

Ford Focus on display in China

Ford Focus on display in China

He'd been responding to an August 31 report about Ford's decision to cancel plans to sell the Chinese-made Focus Active in the USA because of the taxes on Chinese imports.

Trump was quick to tweet that Ford should consider a us production of the auto paying no extra tariffs. "This vehicle can now be BUILT IN THE USA and Ford will pay no tariffs!".

It's not just Ford. It makes many of its products for the USA 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. He also called on Apple to make its products in the United States.

But Ford had originally planned to bring the small crossover vehicle to the USA market beginning in late 2019.

Ford has already announced it will eventually stop selling all passenger cars in the USA except the Mustang, in favor of meeting Americans' appetite for large - and profitable - trucks and SUVs. In May, it stopped making Focus sedans at a plant in Wayne, Michigan.

According to industry analyst Ed Kim from AutoPacific, there was a strong chance the Focus Active would have been sold in the United States if it wasn't for the tariffs.

Intel Corp said proposed tariffs would negatively affect us businesses and "stifle advancements" in telecom infrastructure, including next generation technologies like 5G.




If Ford sold fewer than 50,000 Focus Active wagons per year, it would run a United States factory on only one shift per day, which isn't cost-effective, Dziczek said. While Ford might choose not to build the Focus in China, it does have a multiple number of plants in other countries it can choose to build the small hatchback in.

"This forces Ford to forfeit the sales they would have had if they could continue to import that low-volume niche vehicle", Gabrielsen said.

In China, labour costs are about $8 per hour including benefits, but it's more than $52 per hour in the USA, according to Dziczek.

The Trump administration began imposing higher taxes on goods imported from China this summer. Majority are luxury cars and SUVs with higher profit margins that can cover higher USA wages, she said.

The tariffs changed everything. The Trump administration is poised to decide whether to extend that to another $200 billion of Chinese goods. Yesterday, as the Inquisitr reported, Trump told Apple that it should make their products in the United States, and therefore bypass his tariffs.

The US and China have activated additional tariffs on $50bn (£38.63bn) of each other's goods since July as trade friction between the world's two biggest economies worsened.

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