Ford cancels Focus crossover model, cites Trump tariffs

Ford cancels Focus crossover model cites Trump tariffs

Ford has officially canceled its plans to import the Focus Active to the U.S. next year.

Ford Motor Co. has ditched plans to import its Focus compact vehicle from China to the US starting next year, citing an expected hit from import tariffs the Trump administration put into effect in July.

Per Automotive News, Ford has decided it won't bring the Focus Active to the United States market even if the U.S. government removes the planned tariffs.

Building the Focus Active at the MI plant didn't make sense because Ford anticipates selling less than 50,000 of the model here, said Kumar Galhotra, president of Ford North America, during a Detroit press conference Friday. The Focus Active was originally scheduled to arrive in the second half of 2019.

The high-riding Focus will be built in China and consequently affected by the Trump administration's increased tariffs on vehicles imported from China.

"Our resources could be better deployed".

Dave Sullivan, manager of product analysis at marketing firm AutoPacific Inc., told The Free Press that Trump's "war on the automotive industry is causing a knee-jerk reaction that will only bring higher costs and less choice for consumers". The Focus Active already is sold in Europe, and Ford said it would continue with plans to build it in China for that market as well.

Galhotra said the automaker did not see "significant risk" for its other two imports from outside North America: the EcoSport crossover from India and the Transit Connect van from Spain.

Ford did not seek an exemption from the China tariffs, although rival General Motors did, on its made-in-China Buick Envision, the Detroit News reported. It is considering a plan to impose duties, ranging from 10 to 25 percent, on $200 billion in Chinese imports.

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