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Ford Motor Company
Ford does not intend to start producing the small Focus Focus crossover in the United States, no matter what the President tweeted on the subject.
Ford Motor Company announced more than a week ago that it was canceling the production plans for the car in China and selling it to the US, citing the financial cost of the Trump administration's tariffs on vehicles imported from China .
On Sunday, President Trump welcomed the news as a positive sign. "This car can now be built in the USA and Ford will not pay any fare!" he tweeted.
"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
Ford does not intend to transfer production to the United States.
"As we said last month, it would not be profitable to build the Focus Active in the United States, given an annual turnover of less than 50,000 units and its competitive segment," he said. said the company in a statement addressed to NPR.
The automaker pointed out that it already had a significant industrial presence in the United States.
"Ford is proud to employ more American hourly workers and build more vehicles in the United States than any other automaker," the company said. "In addition, Ford is expanding its vehicle lineup in the US, including the introduction of all-new trucks, utility vehicles, hybrids and all-electric vehicles, and is committing to return operating margins to 10% in North America. North."
The Ford Focus Active has never been sold in the US and Ford currently does not import any vehicles from China.
But, originally, Ford had planned to bring the small crossover vehicle to the US market by the end of 2019.
In writing this spring, Car and Driver described the Focus Active as "a four-door Focus sedan with a 1.2-inch suspension suspension, black plastic around the wheel arches, skid-proof skid plates and a protective cover. shocks and a slightly different grille. design."
Ford has traditionally produced a range of sedans, including Focus, Taurus and Fiesta. Earlier this year, however, the company announced a major change of course (no pun intended): it would begin to eliminate virtually all of its cars in the United States, while doubling the number of trucks and SUVs.
"Here in the United States, Ford has really been a truck company," NPR reported in April. "And according to best estimates, Ford makes more than 90% of its profits on its F-series trucks. It's mainly the F-150."
By phasing out less profitable sedans, Ford will be releasing money to invest in the electrification of its SUV lineup.
Under this new vision of the Ford range, only two cars would be sold in the United States: the Mustang, a sports car and a symbol immediately recognizable, and Focus Active, made in China.
With the cancellation of Focus Active, a spokesman for Ford confirms that the Mustang will ultimately be the only Ford car model sold in the United States.
For its part, General Motors is seeking an exemption from the same tariffs on the vehicles that hit Ford, suggesting that it will have to remove the Envision SUV made in China from the market if the exemption is not granted.
Even cars manufactured and sold in the United States are not exempt from the consequences of tariffs. The Motor & Equipment Manufacturers Association is concerned about tariffs on rough metals, saying they have a destabilizing effect on US manufacturing and that the process for requesting waivers is "opaque, inconsistent and inaccessible".
The Trump administration's decision to impose tariffs on China has triggered quick retaliation, causing a back and forth growing for months.
The trade war has harmed US agriculture, prompting the administration to offer compensation to the affected farmers, and promises to pinch various US companies – including US-based companies, but producing some productions in the US China. .
Meanwhile, Trump has also imposed tariffs on imports from Canada, Mexico and the EU, resulting in higher retaliatory tariffs.
The EU's trade prompted motorcycle builder Harley-Davidson to announce that it would move an American production abroad to allow it to continue selling to its European customers without feeling the repercussions of the counter-tariffs of the EU.
Trump was not happy with the news, urging the company to "be patient" in the face of the financial repercussions of its policies.
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