Pulling the plug on plans to sell the low-volume Focus Active in the U.S. won’t be hugely significant to Ford’s business because it sells more than 2.5 million vehicles annually at home.
President Donald Trump said Ford Motor Co.’s decision not to import a new baby crossover from China means the Focus Active “can now be built in the U.S.A.”
But “can be” and “will be” are two very different things.
The automaker has already said it has no plans to restart production elsewhere. Ford canceled production of the Focus Active for the U.S. on Aug. 31, saying the Trump administration’s 25 percent levy on China-built autos undermined the profitability of the car.
“This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!” Trump tweeted.
“It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units and its competitive segment,” Mike Levine, a spokesman for Ford, tweeted in response to the president’s tweet Sunday.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!
— Donald J. Trump (@realDonaldTrump) September 9, 2018
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