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m3n4.net September 21, 2018


Ford says it's still making hatchback overseas despite President Trump's tweet

11 September 2018, 01:18 | Vera Richards

Ford says it's still making hatchback overseas despite President Trump's tweet

Ford says it's still making hatchback overseas despite President Trump's tweet

Ford already announced earlier this year that it would reallocate $7 billion of research and development funds from cars to SUVs and trucks.

In August, Ford announced it had kill its plan to import the new Focus, citing Trump's tariffs on Chinese imports as the reason for the maneuver.

Ford has traditionally produced a range of sedans, including the Focus, Taurus and Fiesta.

Shares of Apple Inc AAPL.O suppliers fell across Asia on Monday after U.S. President Donald Trump tweeted that the tech giant should make products in the United States if it wanted to avoid tariffs on Chinese imports. CNBC. This is just the beginning. "This vehicle can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!" he tweeted.

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But despite Trump's claims, Ford insisted that this was not the case and that the Focus hatchback will not be built in the United States. Now, the change in plans leaves the Mustang as the lone passenger auto with a long-range future in Ford's domestic lineup as the company doubles down on trucks, SUVs and commercial vehicles.

The plan, said industry analyst Ed Kim of AutoPacific, was to pare down the Focus lineup to Active wagons and import them from China.

With the cancelation of the Focus Active, a Ford spokesman confirms, the Mustang will eventually be the only Ford vehicle model sold in the U.S.

The company said about 80% of the vehicles Ford sells in the United States are built domestically. Start building new plants now.

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Apple's letter says, "Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers".

Ford also wouldn't want to spend millions on equipment to build the Focus Active here because at low sales volumes it wouldn't get a good return on its investment, Dziczek said.

The tariffs changed everything.

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. On 6 July the USA began imposing a 25% tax on $34bn in Chinese imports, including motor vehicles.

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The administration in July implemented a 27.5 percent tariff on cars imported from China, which the Asian nation countered with a 40 percent levy on USA automobile imports. These tariffs have since been extended to an additional $16 billion in Chinese goods and in the near future, will be applied to another $200 billion in goods.



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