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Ford cancels Focus crossover for U.S. due to tariffs
Source: The Detroit News
Ford cancels Focus crossover for U.S. due to tariffs
Ian Thibodeau, The Detroit News Published 11:30 a.m. ET Aug. 31, 2018 | Updated 11:33 a.m. ET Aug. 31, 2018
Ford Motor Co. will not sell its new China-built Focus Active crossover in the United States due to tariffs imposed on Chinese imports by President Donald Trump, the automaker said Friday.
The vehicle, previously expected to arrive in the United States by late 2019, would have been built in China by Ford and shipped to the United States. Recent tariffs imposed on Chinese imports by the Trump administration — and those expected to be levied on imported vehicles — would have trimmed profits on an already low-margin vehicle.
The decision comes as the automaker jostles with an aging portfolio deemed unfit for the SUV-and-crossover-heavy desires of consumers in America and other major markets. Ford leadership under CEO Jim Hackett is pushing for 10 percent profit margins in North America — 7.4 percent in the second quarter — prompting Ford leadership and managers to adopt a "Return to 10" mantra they're using to help guide decision-making on future product and business strategy.
"Given the negative financial impact of the new tariffs, we've decided not to import this vehicle from China," said Kumar Galhotra, Ford president of North America. "The significant thing that moved was the tariffs going up substantially higher. We're choosing to deploy resources elsewhere."
-snip-
Ian Thibodeau, The Detroit News Published 11:30 a.m. ET Aug. 31, 2018 | Updated 11:33 a.m. ET Aug. 31, 2018
Ford Motor Co. will not sell its new China-built Focus Active crossover in the United States due to tariffs imposed on Chinese imports by President Donald Trump, the automaker said Friday.
The vehicle, previously expected to arrive in the United States by late 2019, would have been built in China by Ford and shipped to the United States. Recent tariffs imposed on Chinese imports by the Trump administration — and those expected to be levied on imported vehicles — would have trimmed profits on an already low-margin vehicle.
The decision comes as the automaker jostles with an aging portfolio deemed unfit for the SUV-and-crossover-heavy desires of consumers in America and other major markets. Ford leadership under CEO Jim Hackett is pushing for 10 percent profit margins in North America — 7.4 percent in the second quarter — prompting Ford leadership and managers to adopt a "Return to 10" mantra they're using to help guide decision-making on future product and business strategy.
"Given the negative financial impact of the new tariffs, we've decided not to import this vehicle from China," said Kumar Galhotra, Ford president of North America. "The significant thing that moved was the tariffs going up substantially higher. We're choosing to deploy resources elsewhere."
-snip-
Read more: https://www.detroitnews.com/story/business/autos/ford/2018/08/31/ford-wont-sell-new-focus-crossover-u-s/1156315002/
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