Ford cancels Focus crossover model, cites Trump tariffs

Ford cancels Focus crossover model, cites Trump tariffs

Ford planned to sell about 50,000 Focus Active crossovers in the US annually after a launch scheduled for late 2019.

Ford had planned to begin shipping a new version of the Focus from China, starting in the second half of 2019.

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.

"Our resources could be better deployed".

The Trump administration could implement another round of tariffs on $200 billion worth of Chinese goods any time after the public comment period ends next week.

Ford's financial state has been deteriorating as it's over-relied on North American operations that have seen profit margins shrink due to an aging lineup.

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Galhotra told reporters the crossover wasn't worth putting money into a auto that they estimate would have sold less than fewer than 50,000 unit sales a year in the United States.

Ford also expects this decision to have a minimal impact on its business, given expectations of selling less than 50,000 Focus Actives here.

Tariffs could be coming at a bad time for Ford, whose stock last month dipped below $10 for the first time in nearly six years. Last year, Ford chose to shift production to China, and this year the automaker made the move to eventually stop selling nearly all of its passenger cars in the U.S.

She said 48 percent of the vehicles sold in the US were imported previous year, and even vehicles that aren't imported have a significant percentage of foreign parts.

Galhotra added that importation of the Ford EcoSport crossover, from India, and the Ford Transit Connect van, from Spain, would continue.

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