Ford might be the most recent prey fallen to the raging tariff war between US and China. On Friday, the American auto company called off the imports of a wagon version of the Focus from China due to the increased tariffs imposed by the Trump administration.
A spokesperson for the company talking to Automotive News made the company’s intentions clear, stating that it won’t reconsider the option even if the tariffs were eventually dropped. The company had expected a sale of 50,000 units a year which after bringing the Focus Active to the US by the second half of 2019.
A spokesperson of the company who spoke to Automotive News made the company's intentions clear by stating that it won't reconsider the option even if the the tariffs were eventually dropped
“The impact to our future sales is expected to be marginal,” Kumar Galhotra, Ford’s president of North America, told reporters on a conference call. “Our viewpoint is that, given the tariffs, our costs would be substantially higher. Our resources could be better deployed at this stage.”
Reports suggest that the American auto giant is under a major global restructuring expected to cost $11 billion in the next three to five years.
The decision comes as a significant blow to the company as Focus was one of the most venerable models in the country and the latest decision means an end of the nameplate in the country. Adding to this, Galhotra also stated that the automaker saw no ‘significant risk’ for its other two imports: the EcoSport crossover from India and the Transit Connect van from Spain.
Reports suggest that the American auto giant is under a major global restructuring expected to cost $11 billion in the next three to five years. With the revamp, the company has decided to pull the plugs on its sedans, aiming at 10 percent profit margins in North America alone.