Ford Halts Its Plan To Sell Vehicle Made In China On US Market Amid Trade War

Ford announced it will halt its plan to sell Chinese-made vehicles on the U.S. market because of the tariffs on Chinese products. The company's logo is pictured on Nov. 2, 2009 in Richmond, California. Photo: Justin Sullivan/Getty Images

By Andrew N. White, International Business Times

Ford Motor Company said it has defaulted on its initial plan to sell vehicles made in China on the U.S. market because of the possibility that tariffs on Chinse products could increase.

The American automaker announced Friday that it has reneged on its strategy to offer its Chinse-made car known as the Focus Active to American consumers because of the ongoing trade spat between China and the U.S. The Trump administration raised duties on Chinese-made vehicles up to 25 percent in July. The president could hand down another round of tariffs on $200 billion worth of Chinese goods in September when the public comment period ends.

"Given the negative financial impact of the new tariffs, we've decided to not import this vehicle from China," said Kumar Galhotra, president of Ford North America, during a conference call Friday morning.

Ford had long planned to phase out its Focus sedan model and replace it with its Focus Active, a crossover-sized four-door hatchback. The car was scheduled to start selling to U.S. customers late 2019. However, according to Ford officials, the Trump administration's duties on Chinese products and the possibility of additional tariffs changed their plans.

"Basically, this boils down to how we deploy our resources. Any program that we’re working on requires resources — engineering resources, capital resources," Galhotra said. "Our resources could be better deployed at this stage."

Still, the company looks to push forward production and sales of the Focus Active in Europe and China, Galhotra said.

Ford’s decision on Friday comes after a previous announcement earlier this year stating that it would slow its sales of cars in the U.S. in favor of SUVs and trucks.

COMMENTS





Name

Business,743,Careers & Education,3,Investing,14,Markets,10,Money,4,Personal Finance,4,Real Estate,4,Small Business,15,
ltr
item
Business - U.S. Daily News: Ford Halts Its Plan To Sell Vehicle Made In China On US Market Amid Trade War
Ford Halts Its Plan To Sell Vehicle Made In China On US Market Amid Trade War
https://3.bp.blogspot.com/-PPy5BPfDTkw/W4zYYqMNvbI/AAAAAAAA79g/kvqCTgjVGvEhJmitiXr5OymhCsjgkZPqACEwYBhgL/s1600/5.jpg
https://3.bp.blogspot.com/-PPy5BPfDTkw/W4zYYqMNvbI/AAAAAAAA79g/kvqCTgjVGvEhJmitiXr5OymhCsjgkZPqACEwYBhgL/s72-c/5.jpg
Business - U.S. Daily News
https://business.dailynews.us.com/2018/09/ford-halts-its-plan-to-sell-vehicle.html
https://business.dailynews.us.com/
https://business.dailynews.us.com/
https://business.dailynews.us.com/2018/09/ford-halts-its-plan-to-sell-vehicle.html
true
8288295252483019008
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy