Ford tells Trump why it won’t make China-built car in US

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US-China trade war may raise gadget prices

President Donald Trump provided some enterprise recommendation to Ford Motor on Sunday: due to the administration’s excessive tariffs on automotive imports from China, Ford can begin making its Focus Energetic in the USA.

Ford wasted little time responding to say that wasn’t going to occur.

“It might not be worthwhile to construct the Focus Energetic within the U.S. given an anticipated annual gross sales quantity of fewer than 50,000 items,” Ford mentioned Sunday.

The assertion got here after Trump tweeted about an article from August 31, when Ford introduced that it was canceling plans to make the Focus Energetic, a compact crossover, in China and ship them to the USA.

“That is only the start. This automotive can now be BUILT IN THE U.S.A. and Ford can pay no tariffs!” Trump wrote, citing a Reuters article posted on CNBC.

The Trump administration has imposed tariffs on $50 billion price of Chinese language items, together with some vehicles, in a transfer Trump has touted as essential to punish Beijing for what he says are its unfair commerce practices and mental property theft. China has retaliated in sort, and Washington and Beijing have proceed to ratchet up threats of extra tariffs.

Ford mentioned final month that it was scrapping its plans to import Focus Actives made in China to promote in the USA as a result of Trump’s tariffs would make the vehicles too costly.

However the firm additionally reaffirmed that it has no plans to begin making the automotive on US soil. It can proceed to promote the car exterior the states.

Sedans and different small vehicles are falling out of favor with Individuals.

Ford already introduced earlier this 12 months that it might reallocate $7 billion of analysis and growth funds from vehicles to SUVs and vans. Govt James Farley mentioned at an investor’s convention in January that the carmaker’s lineup is “shifting from vehicles to utilities.”

It isn’t simply Ford. All three Detroit automakers have made it clear that they are going all-in on SUVs and vans.

—CNN’s Chris Isidore and Peter Valdes-Dapena contributed to this report.

CNNMoney (New York) First revealed September 9, 2018: three:42 PM ET



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