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On Sunday, President Donald Trump tweeted with approval about the 10-day news that his 25% tariffs on automobiles made in China had led Ford to decide not to import its compact Ford Focus Active model into the United States. is made.
"That's just the beginning – this car can now be built in the US and Ford will not pay a fare!
"Ford has brutally killed a plan to sell a small Chinese-made vehicle in the United States because of the prospect of higher US tariffs." CNBC. This is only the beginning. This car can now be built in the US and Ford will not pay any fare!
– Donald J. Trump (@realDonaldTrump) September 9, 2018
A problem: it will not happen.
Mike Levine, director of product communication for Ford North America, told the president that "the Focus Active in the United States would not be profitable given an annual sales volume of less than 50,000 units and its competitive segment. "
It would not be profitable to build the Focus Active in the United States, given the anticipated annual sales volume of less than 50,000 units and its competitive segment.
US is proud to employ more American hourly workers and build more vehicles in the United States than any other automaker.
– Mike Levine (@mrlevine) September 9, 2018
Ford did not transfer Focus's production to China by accident; that's what happened because the US market went from small vehicles to SUVs, which made illusory the production of Focus in the United States, a relatively expensive place.
The automaker decided a few years ago to transfer the production of Focus to Mexico, and last year he opted for China. Earlier this year, Ford canceled all its smaller cars, with the exception of the Mustang and the Focus Active.
After Trump started threatening its new tariffs against China, Ford decided in August that it would not sell the Focus Active in the United States. The profit margins were simply too low to be worth it.
Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Automotive economist Jon Gabrielsen told the Detroit Free Press that Trump's tweet was "further evidence that neither the president nor his sales representatives have any idea of the complexity of global supply chains". "data-reactid =" 32 "> Jon Gabrielsen, automotive economist, Detroit Free Press that Trump's tweet was "further proof that neither the president nor his sales representatives have any idea of the complexity of global supply chains".
"This forces Ford to give up sales that they could have continued to import this niche vehicle at low volume," said Gabrielsen.
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