Despite Donald Trump tweet, Ford says it won't make hatchback in US

Sep 10, 2018, 09:05 IST | AP

The world's two biggest economies are clashing over US allegations that China deploys predatory tactics including outright cybertheft to acquire technology from US companies and challenge American technological dominance.

Despite Donald Trump tweet, Ford says it won't make hatchback in US
Donald Trump. Pic/AFP

Ford won't be moving production of a hatchback wagon to the United States from China despite President Donald Trump's claim Sunday that his taxes on Chinese imports mean the Focus Active can be built in America. Citing Trump's new tariffs, Ford on August 31 said it was dropping plans to ship the Focus Active from China to America.

Trump took to Twitter Sunday to declare victory and write: "This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!" But in a statement Sunday, Ford said "it would not be profitable to build the Focus Active in the US" given forecast yearly sales below 50,000. For now, that means Ford simply won't sell the vehicle in the United States. Kristin Dziczek of the Center for Automotive Research said that Ford can make Focuses "in many other plants around the world, so if they decided to continue to sell a Focus variant in the U.S. market, there are several options other than building it in the United States."

In April, Ford announced plans to stop making cars in the United States except for the iconic Mustang and to focus on more profitable SUVs. It stopped making Focus sedans at a Wayne, Michigan, plant in May. The plan, said industry analyst Ed Kim of AutoPacific, was to pare down the Focus lineup to Active wagons and import them from China. "Without the tariffs, the business case was pretty solid for that model in the U.S. market," Kim said. The tariffs changed everything.

The United States on July 6 began imposing a 25 per cent tax on USD 34 billion in Chinese imports, including motor vehicles. Last month, it added tariffs to another USD 16 billion in Chinese goods and is readying taxes on another USD 200 billion worth. China is retaliating with its own tariffs on US products. The world's two biggest economies are clashing over US allegations that China deploys predatory tactics including outright cybertheft to acquire technology from US companies and challenge American technological dominance.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

DISCLAIMER: mid-day and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

Donald Trump's 'covfefe' tweet confounds Twitter

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK